Ha! Hilarious! I see that Ford is up in arms over the claims in this ad, take it easy, it's meant to be funny. Wow.
Ford sent a letter to NBC requesting the ad not run in the game. It also sent a letter to Chevy asking the automaker to pull the ad from the game, its websites and its Youtube channel. "Ford demands that Chevrolet immediately cease and desist from making any unsubstantiated and disparaging claims regarding Ford's pickup trucks." The letter warned Ford could take further actions. "If Chevrolet does not comply with the above terms prior to the start of the Super Bowl, then Ford will take all appropriate steps to enforce and protect its reputation."
Showing posts with label GM. Show all posts
Showing posts with label GM. Show all posts
Book: Hoffa is buried beneath the GM Building
Detroit— Some say Jimmy Hoffa is buried somewhere under the west endzone at Giants Stadium in New Jersey. Others say he was cremated in a Hamtramck garbage incinerator or dumped in the Florida Everglades.But a new book penned by a man who was Hoffa's driver and a Canadian journalist says the legendary Teamster boss is still in Detroit, buried beneath General Motors' headquarters at the Renaissance Center in Downtown Detroit.
The book — "The Weasel: A Double Life in the Mob" (Wiley; November 2011) — is the latest tome to expose what really happened to Hoffa. The book's authors are Marvin Elkind, a self-described "chauffeur and goon for mob bosses" who turned police informant, and Adrian Humphries, who has written two other books about the mafia.
Elkind claims he learned Hoffa was buried under the RenCen during a Teamsters conference in Detroit in 1985. Reputed mob boss Anthony Giacalone told him and a group of delegates, Elkind told the New York Post.
As the group left the hotel across the street from where the Renaissance Center was under construction, Giacalone nodded toward the new building's foundation and said, "Say good morning to Jimmy Hoffa, boys."
Source;
http://www.detroitnews.com/article/20111227/METRO/112270331/-1/archive/Book-Hoffa-buried-beneath-RenCen
GM Gets Pranked at Chevy Event
By SHARON TERLEPDETROIT—General Motors Co. officials were red-faced on Wednesday after software on a network at its headquarters was programmed to insert a derogatory remark on computer browsers after any mention of Chrysler Group LLC and several other competitors.
The prank came to light at GM's unveiling of a battery-powered version of its Chevrolet Spark small car at a five-day event marking the 100th anniversary of GM's Chevrolet brand. The event drew more than 200 journalists from around the world.
Selim Bingol, a GM spokesman, said the auto maker had nothing to do with the prank. GM has since corrected the problem.
GM officials said computer technicians found an unauthorized software program had been installed on a wireless router, and the program was altering the way Web pages were displayed to insert the word "sucks" after any mention of certain rivals on computers linked to the network.
Later in the day, GM said it had identified the culprit—a subcontractor who had helped set up the wireless network. GM didn't identify the company but said the subcontractor had admitted its role and intended the prank to be humorous.
"These guys are learning the definition of sucks," Mr. Bingol said.
Computers accessing the Internet via other networks at the company's headquarters were unaffected.
The word "sucks" appeared after mentions of Chrysler, Ford Motor Co., Toyota Motor Corp., and Honda Motor Co. on any searches or references to those companies conducted on computers using the GM network. Web references were not permanently altered because the word was inserted only onto the displays of computers using that one network.
The word did not appear after mentions of Nissan Motor Co., Hyundai Motor Co., or Volkswagen AG.
Source;
http://online.wsj.com/article/SB10001424052970204002304576626982322048592.html
GM to produce all-electric Chevy Spark
(Reuters) - General Motors Co confirmed it will make its first all-electric vehicle, a version of the Chevrolet Spark minicar that will debut in 2013 and take aim at Nissan Motor Co Ltd's Leaf."Chevrolet will produce an all-electric version of the Spark minicar for selected U.S. and global markets, including California," Jim Federico, Chevy's global vehicle chief engineer for electric vehicles, said at the company's Detroit headquarters on Wednesday.
Electric cars have been slow to catch on. In the U.S. market, demand has been held back by the lack of models to choose from, skimpy infrastructure for charging the vehicles, high sticker prices, and low gasoline prices compared with other industrialized nations.
News of the electric Spark continues GM's push to seize the mantle of "greenest automaker in the world" from Toyota Motor Corp, which makes the popular Prius hybrid car.
GM, like other major automakers, also needs more fuel-efficient cars as the industry pushes toward more stringent U.S. requirements that will be in place by 2025.
Further details about the electric Spark, including driving range and price, will be released closer to introduction.
The Volt has a 400-pound lithium-ion battery that provides an electric-only range of up to 50 miles. After the battery is depleted, a 1.4-liter gas engine provides power.
Nissan launched the five-passenger Leaf in Japan and the United States in December 2010. The vehicle has an EPA-certified driving range of 73 miles.
Marketing an all-electric vehicle will mark a break for GM. It has emphasized the Volt's ability to continue driving under gas power even after its electric charge has been used as a way to prey on consumer anxiety about being stranded while driving an all-electric car.
Leaf's U.S. sales through September were about 27,500, seven times higher than the larger Volt. The Leaf's U.S. price starts at $32,780 before a $7,500 federal tax credit.
"We welcome competitors into the market," Mark Perry, director of product planning for Nissan Americas, told Reuters. "We're glad that GM has decided to go pure electric. This brings further validity to the segment."
Ford Motor Co will introduce an electric Focus by the end of this year, and ramp up production in early 2012. The small car's driving range has not yet been certified by the EPA, but the company expects it can travel up to 100 miles on a full charge, depending on conditions.
Toyota will offer a plug-in version of the Prius that can drive up to 15 miles on a charge starting next year. Other automakers also are rolling out plug-in hybrid vehicles.
Federico said the electric Spark's global rollout will be similar to that of the plug-in electric hybrid Chevy Volt, which started in the U.S. market and has expanded from there.
The gasoline-powered Spark is now sold only in China, India and South Korea. A new version of the gas-powered Spark will debut next year and be introduced in the United States and other markets.
Federico declined to say where the electric Spark will be built, but the gas version is currently assembled in South Korea.
GM Chief Executive Daniel Akerson has driven the company more aggressively toward electric vehicles since taking the top job about a year ago.
The U.S. automaker's push under Akerson has centered on rolling out plug-in hybrid technology in a broader range of vehicles to recoup its investment in the money-losing Volt. By using its electric-vehicle technology in more cars, GM could reap more profits and drive down the technology's cost.
In August, GM said it would build a Cadillac ELR luxury coupe based on Volt's plug-in hybrid technology.
A123 Systems Inc will provide the lithium-ion battery for the electric Spark, Federico said.
In August, GM said it had awarded A123 a contract to build battery packs for future electric vehicles, but it did not say which vehicles would use the batteries.
Sources told Reuters that GM executives were studying plans for an all-electric small car for the Chevy brand that included an A123 battery.
Source;
OnStar Discloses that it Will Track Customers Without a Plan
Wow, you've got to be kidding me, GM = Big Brother now?!?
by Mark Hackman
OnStar has begun notifying customers that it may continue to collect and use information about the vehicle even if the customer terminates his or her subscription.
In a privacy notice that will take effect this December, OnStar said that it would collect data as long as a data connection was active, including such details as the location and speed of the vehicle, as well as such fine-grained details as the odometer readings and tire pressure.
The privacy statement lists it as being effective as of Dec. 2011, although the statement also notes that the changes were made to the January 2011 privacy statement.
In the privacy notification, OnStar said that it will share the information it collects with credit card processors and data management companies, as well as roadside assistance providers, emergency services providers, law enforcement, and wireless and satellite service providers.
The data collection can be halted, however; OnStar must deactivate the data connection. "Unless the Data Connection to your Vehicle is deactivated, data about your Vehicle will continue to be collected even if you do not have a Plan," the privacy policy states. "It is important that you convey this to other drivers, occupants, or subsequent owners of your Vehicle. You may deactivate the Data Connection to your Vehicle at any time by contacting an OnStar Advisor."
What data does OnStar collect? The company provides a detailed list:
OnStar collects basic contact information, billing information with credit-card information, and details of the car, such as the make, model, and vehicle identification number (VIN);
vehicle information, including diagnostic trouble codes, oil life, tire pressure, and fuel economy, as well as when your fuel was last refilled;
crash information, including the direction of the crash, whether air bags were deployed, and whether the driver and passenger were wearing their seat belts;
anonymized location information, such as the location and speed of the car, via the installed GPS.
In the latter case, OnStar begins by saying that it only collects the GPS location of the vehicle in case of a crash, or lost vehicle. But it also adds that it may collect the information "when needed by us or our Service Providers for our quality, research or troubleshooting purposes" or simply "for any purpose, at any time, provided that following collection of such location and speed information identifiable to your Vehicle, it is shared only on an anonymized basis."
OnStar also collects information on the details of calls made by the associated Hands-Free Calling service.
In July, OnStar launched the OnStar FMV, an aftermarket rear-view mirror with the OnStar service built in. In July, OnStar also added the capability to track their own cars with a beta service. Ford, which competes against OnStar with its Sync service, also recently announced the capability to allow users to call its customer service centers from within the vehicle to inquire about business addresses and phone numbers.
Whether or not OnStar really anonymizes the data is irrelevant, according to Jonathan Zdziarski, a senior forensic scientist at Via Forensics who wrote about the change in the policy.
"This is too shady, especially for a company that you're supposed to trust your family to," he wrote. "My vehicle's location is my life, it's where I go on a daily basis. It's private. It's mine. I shouldn't have to have a company like OnStar steal my personal and private life just to purchase an emergency response service. Taking my private life and selling it to third party advertisers, law enforcement, and God knows who else is morally inept. Shame on you, OnStar. You disgust me."
OnStar also noted that customers with concerns can email its privacy manager at privacymanager@onstar.com, or call the company at (877) 299-1372.
OnStar representatives could not be reached for comment after hours.
Source;
http://www.pcmag.com/article2/0,2817,2393378,00.asp#fbid=8G2XIIvcyWG
by Mark Hackman
OnStar has begun notifying customers that it may continue to collect and use information about the vehicle even if the customer terminates his or her subscription.
In a privacy notice that will take effect this December, OnStar said that it would collect data as long as a data connection was active, including such details as the location and speed of the vehicle, as well as such fine-grained details as the odometer readings and tire pressure.
The privacy statement lists it as being effective as of Dec. 2011, although the statement also notes that the changes were made to the January 2011 privacy statement.
In the privacy notification, OnStar said that it will share the information it collects with credit card processors and data management companies, as well as roadside assistance providers, emergency services providers, law enforcement, and wireless and satellite service providers.
The data collection can be halted, however; OnStar must deactivate the data connection. "Unless the Data Connection to your Vehicle is deactivated, data about your Vehicle will continue to be collected even if you do not have a Plan," the privacy policy states. "It is important that you convey this to other drivers, occupants, or subsequent owners of your Vehicle. You may deactivate the Data Connection to your Vehicle at any time by contacting an OnStar Advisor."
What data does OnStar collect? The company provides a detailed list:
OnStar collects basic contact information, billing information with credit-card information, and details of the car, such as the make, model, and vehicle identification number (VIN);
vehicle information, including diagnostic trouble codes, oil life, tire pressure, and fuel economy, as well as when your fuel was last refilled;
crash information, including the direction of the crash, whether air bags were deployed, and whether the driver and passenger were wearing their seat belts;
anonymized location information, such as the location and speed of the car, via the installed GPS.
In the latter case, OnStar begins by saying that it only collects the GPS location of the vehicle in case of a crash, or lost vehicle. But it also adds that it may collect the information "when needed by us or our Service Providers for our quality, research or troubleshooting purposes" or simply "for any purpose, at any time, provided that following collection of such location and speed information identifiable to your Vehicle, it is shared only on an anonymized basis."
OnStar also collects information on the details of calls made by the associated Hands-Free Calling service.
In July, OnStar launched the OnStar FMV, an aftermarket rear-view mirror with the OnStar service built in. In July, OnStar also added the capability to track their own cars with a beta service. Ford, which competes against OnStar with its Sync service, also recently announced the capability to allow users to call its customer service centers from within the vehicle to inquire about business addresses and phone numbers.
Whether or not OnStar really anonymizes the data is irrelevant, according to Jonathan Zdziarski, a senior forensic scientist at Via Forensics who wrote about the change in the policy.
"This is too shady, especially for a company that you're supposed to trust your family to," he wrote. "My vehicle's location is my life, it's where I go on a daily basis. It's private. It's mine. I shouldn't have to have a company like OnStar steal my personal and private life just to purchase an emergency response service. Taking my private life and selling it to third party advertisers, law enforcement, and God knows who else is morally inept. Shame on you, OnStar. You disgust me."
OnStar also noted that customers with concerns can email its privacy manager at privacymanager@onstar.com, or call the company at (877) 299-1372.
OnStar representatives could not be reached for comment after hours.
Source;
http://www.pcmag.com/article2/0,2817,2393378,00.asp#fbid=8G2XIIvcyWG
Opel Meriva Concept
I understand that beauty is in the eye of the beholder, but whoa, this is officially the ugliest prototype i've ever seen....
Source;
http://visions-autos.sport24.com/596288/Design-retour-de-la-Porte-Suicide-et-de-la-porte-Coulissante/
Source;http://visions-autos.sport24.com/596288/Design-retour-de-la-Porte-Suicide-et-de-la-porte-Coulissante/
GM pays back government loans in full
Here's a bit of good news....
Kansas City, Kansas – General Motors has made its final payment of US$5.8 billion to the U.S. Treasury and Export Development Canada, paying back its government loans in full and ahead of schedule. The payment includes $4.7 billion to the U.S. Treasury, and $1.1 billion to Export Development Canada.
The announcement was made by GM chairman and CEO Ed Whitacre at a ceremony in Fairfax, Kansas to announce an investment of $257 million in Fairfax and Detroit Hamtramck assembly centres. The investment will prepare Fairfax to build the next-generation Chevrolet Malibu and make Detroit Hamtramck a second source for the model. Fairfax currently builds the current Malibu and the Buick LaCrosse.
As part of the launch of the new GM, the U.S., Canadian and Ontario governments provided loans of $8.4 billion and took equity stakes in the new company. The latest payment completes the payback of the loans.
“GM’s ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track,” Whitacre said. “It is also an important first step toward allowing our stockholders to reduce their equity investments in GM. We still have much hard work ahead of us, but we are making progress toward our vision of designing, building and selling the world’s best vehicles. We appreciate the support the taxpayers have given GM, and our new great products are tangible results of that support.”
Source;
http://www.canadiandriver.com/2010/04/21/gm-pays-back-government-loans-in-full.htm
Kansas City, Kansas – General Motors has made its final payment of US$5.8 billion to the U.S. Treasury and Export Development Canada, paying back its government loans in full and ahead of schedule. The payment includes $4.7 billion to the U.S. Treasury, and $1.1 billion to Export Development Canada.The announcement was made by GM chairman and CEO Ed Whitacre at a ceremony in Fairfax, Kansas to announce an investment of $257 million in Fairfax and Detroit Hamtramck assembly centres. The investment will prepare Fairfax to build the next-generation Chevrolet Malibu and make Detroit Hamtramck a second source for the model. Fairfax currently builds the current Malibu and the Buick LaCrosse.
As part of the launch of the new GM, the U.S., Canadian and Ontario governments provided loans of $8.4 billion and took equity stakes in the new company. The latest payment completes the payback of the loans.
“GM’s ability to pay back the loans ahead of schedule is a sign that our plan is working, and that we are on the right track,” Whitacre said. “It is also an important first step toward allowing our stockholders to reduce their equity investments in GM. We still have much hard work ahead of us, but we are making progress toward our vision of designing, building and selling the world’s best vehicles. We appreciate the support the taxpayers have given GM, and our new great products are tangible results of that support.”
Source;
http://www.canadiandriver.com/2010/04/21/gm-pays-back-government-loans-in-full.htm
How Long can Honda 'Go it Alone'?
Here are a couple of good articles....
Daimler-Renault-Nissan deal puts spotlight on scale
Daimler-Renault-Nissan deal puts spotlight on scale(Reuters) - The link-up between Renault-Nissan and Daimler (DAIGn.DE) shows the urgent need for scale in an industry still reeling from a collapse in demand and gearing up for massive investment in green-car technology.
That will mean renewed scrutiny of growth strategies by the likes of Japan's Mitsubishi Motors (7211.T), France's PSA Peugeot Citroen (PEUP.PA), Germany's BMW (BMWG.DE) and even Italy's Fiat (FIA.MI), analysts say.
"We are going to see some significant mergers, acquisitions, restructurings and spinoffs," said David Cole, director of the Center of Automotive Research in Ann Arbor, Michigan.
Just three years ago, Daimler moved to unwind one of the least successful deals in the history of the auto industry, dumping its Chrysler unit for a $30 billion loss.
Now, the Mercedes-maker has decided a more limited deal with the Renault-Nissan (RENA.PA) (7201.T) alliance headed by Carlos Ghosn will give it the small-car technology and scope it needs in the face of tighter emissions and fuel economy standards.
In return, Renault-Nissan will get access to Daimler's engines for Nissan's luxury Infiniti brand and the opportunity to share vehicle platforms and bring down costs at a time when its own alliance has been seen as sputtering.
Cole said the deal could be a blueprint for future collaboration in a high-cost area: developing the engine, transmission and now battery-drive systems that power vehicles.
"The historic view is that the powertrain defines the personality of the vehicle in the eyes of consumers. That's probably not true anymore," he said.
FIAT TO FOLLOW?
For smaller players such as Japan's Suzuki Motor Corp (7269.T), developing technologies such as a complex hybrid system on its own was not an option, which is why it aligned itself with Volkswagen AG (VOWG_p.DE) late last year.
Similarly, last month, Mazda Motor (7261.T) struck a deal to buy hybrid technology from market-leader Toyota Motor (7203.T).
Elsewhere, Italy's Fiat last year teamed up with bankrupt Chrysler, and analysts said it could look for further partners in Asia after having formed joint ventures with Tata Motors Ltd (TAMO.BO) in India and others in China and Russia.
"I could easily see Fiat shopping for another alliance in Asia," said Logan Robinson, a professor at the University of Detroit Mercy School of Law and former auto executive.
China is likely to be a key. Its emergence as the world's largest car market has been a boon to sales for U.S., European and Japanese car makers, but it has also created competitors such as Geely (0175.HK) -- fresh off its acquisition of Sweden's Volvo -- with deep pockets and global ambitions.
Still, after the numerous false starts over the past two decades -- most notably with the spectacular break-up of DaimlerChrysler after nine years -- some analysts remain skeptical that alliances can deliver as promised.
"I'm hoping that others don't go down this path" taken by Renault-Nissan and Daimler, said Erich Merkle, analyst at Autoconomy.com. "If you look at the history of alliances...they have a very checkered past. Most of them haven't worked.
While financial markets tend to price progress in quarters, it can take four years or longer to capture the full cost savings from collaboration in developing a new vehicle even if everything goes as planned, analysts say.
TOUGH EXECUTION
Even Nissan and Renault, lauded as a rare example of an alliance that has worked, has had a mediocre start.
After a decade together, the partners admitted last year to needing deeper integration, putting in place a more formal structure to squeeze out synergies that engineers had resisted. The partnership saved near-bankrupt Nissan from demise, but Renault has fallen into a slump Ghosn has struggled to reverse.
That could be a lesson for Fiat CEO Sergio Marchionne, who faces the daunting task of integrating Chrysler after taking a 20 percent stake in the weakest U.S. carmaker out of a U.S.-government funded bankruptcy.
Marchionne has said that automakers need global sales of at least 6 million cars and trucks to be competitive on cost. The Daimler-Renault-Nissan alliance would just clear that hurdle with global sales of just over 6 million units.
Fiat-Chrysler remains short of the mark, closer to 4.5 million units. But size alone is no guarantee of success.
General Motors Co GM.UL is a case in point. After its own 2009 bankruptcy, GM, like crosstown rival Ford Motor Co (F.N), is struggling bring the focus back to its core brands, led by Chevy.
Even Toyota, the world's top automaker, has proven that the bigger the ship, the tougher it is to steer. Rather than seek tie-ups, Toyota has said it would slim down its vehicle line-up to become more nimble and efficient.
FLYING SOLO
Having failed to agree terms on a capital alliance with Frances PSA, Japan's Mitsubishi Motors is seen by analysts in need of a partner to offset the cost of developing advanced technologies in areas like battery-powered cars.
But Mitsubishi President Osamu Masuko told Reuters last month that equity-based tie-ups were no guarantee of success.
"We have to remember that a capital alliance is no panacea," Masuko said. "If it were, then why didn't it work for us with Chrysler? Or with Daimler? What happened with all the capital ties that General Motors had?"
Honda Motor Co (7267.T) also believes it can find new efficiencies in-house will as Japan's second-biggest automaker continues to shun alliances, much like BMW.
"The key now is figuring out how to efficiently develop and produce cars," Honda executive Fumihiko Ike said last month. "And if the company becomes too big, efficiencies will also fail."
BMW, meanwhile, has project-based ties, including with PSA in small engines, and expects its cooperation on sourcing with Daimler will continue, notwithstanding the latter's deal with Renault and Nissan.
"We don't want to give up our independence," BMW Chief Financial Officer Friedrich Eichiner said. "I don't see a big problem if a manufacturer like Daimler is now cooperating with Nissan. They must have reasons to do that."
(Additional reporting by Soyoung Kim in DETROIT; Irene Preisinger in MUNICH; Jo Winterbottom in MILAN; John Bowker in MOSCOW; Helen Massy-Beresford in PARIS; William Rigby in SEATTLE; Editing by Lincoln Feast)
YOKOHAMA — With Nissan Motor Co. and its French partner Renault SA looking to expand their clout through a new cross-sharing deal with Germany's Daimler AG, the big question is: who is next in the realignment of the global auto industry?
Pressure has been heavy on carmakers to pursue expansion of scale to save on development costs of highly expensive green technology and to secure their foothold in fast-growing emerging markets by offering affordable compacts.
In the latest agreement, the Nissan-Renault alliance and Daimler will mutually swap 3.1 percent in shares to cooperate in the development of next-generation compact cars and to share fuel-efficient engine technology.
Just a few months earlier, Suzuki Motor Corp. inked a capital tieup with Volkswagen AG, as the German automaker seeks to expand its presence in India, where Suzuki has established a solid presence, while the Japanese automaker turns to Volkswagen's expertise in developing environmentally friendly vehicles.
"It costs a lot to develop wide-ranging technologies, and there is no clear favorite among the scattered environmental technologies, including electric vehicles and hybrids," said Takashi Akiyama, vice president of SC-ABeam Automotive Consulting.
"Also, with the rapid expansion of emerging markets, it's hard for an automaker to make it on its own," he said. "Expansion of scale is necessary for survival, and further realignment in the industry is anticipated."
With dwindling choices for cross-border alliances, attention has naturally fallen on Honda, one of the strongest players in the industry. The automaker has continued to eke out profits, even as most auto giants sank into the red after the financial crisis hit in 2008.
"You need great energy to reach an understanding with an alliance partner and time is quickly lost during that process," Fumihiko Ike, Honda's head of Asia and Oceania operations, recently told reporters. "It's faster to do it alone."
But analysts said even Honda, which sells the Fit compact and the Insight hybrid, may eventually need to shift course and look outside as rivals pose a rising threat by becoming bigger and more cost-efficient.
"There is no need to immediately join forces since its products, centering on compact cars, are selling well," said Shigeru Matsumura, an auto analyst at SMBC Friend Research Center. "But Honda will probably not be able to stay the way it is as others form alliances and boost their cost competitiveness."
Tatsuya Mizuno, a former auto analyst at Fitch Ratings in Tokyo and current representative of consulting firm Mizuno Credit Advisory, also suggested Honda may ally with South Korea's Hyundai Motor Co. in a shakeup that he predicted will consolidate the industry into five major automotive groups.
The dramatic shift in the global auto sector also comes as an unprecedented safety crisis pounds the carefully cultivated reputation of Toyota Motor Corp., the world's largest carmaker.
With global sales of nearly 8 million vehicles, Toyota remains ahead in terms of both scale and product lineup with minicar maker Daihatsu Motor Co. and truck maker Hino Motors Ltd. under its wing.
A pioneer in gas-electric hybrid technology, it also has close ties with Mazda Motor Corp. and Fuji Heavy Industries Ltd., which makes the Subaru brand and is owned 16.5 percent by Toyota.
Yet, the current story of Toyota includes a series of safety lapses, which its president, Akio Toyoda, has blamed on an aggressive drive for volume at the expense of product quality.
Despite the hype over the emergence of new alliances, deals have frequently collapsed in the past, including the breakup of Daimler and Chrysler Group LLC.
"When we came together with Chrysler, we were in agreement about the merger, but we hadn't had much thought about content of collaboration," Daimler Chairman Dieter Zetsche said at a news conference in Brussels, emphasizing that the relationship with Renault and Nissan will be "totally different."
Nissan President Carlos Ghosn, who concurrently serves as chief executive officer of Renault, said the "strategic cooperation" with Daimler — not to be mistaken with an alliance — will be long-term, while the pursuit of scale will continue as Nissan and Renault vie to become the No. 1 automotive group.
Under intense pressure to shave costs, automakers just outside the top global sales ranks are certain to face calls to develop or expand alliances or to explain to their shareholders why they are betting off going it alone.
That will mean renewed scrutiny of growth strategies by the likes of Japan's Mitsubishi Motors (7211.T), France's PSA Peugeot Citroen (PEUP.PA), Germany's BMW (BMWG.DE) and even Italy's Fiat (FIA.MI), analysts say.
"We are going to see some significant mergers, acquisitions, restructurings and spinoffs," said David Cole, director of the Center of Automotive Research in Ann Arbor, Michigan.
Just three years ago, Daimler moved to unwind one of the least successful deals in the history of the auto industry, dumping its Chrysler unit for a $30 billion loss.
Now, the Mercedes-maker has decided a more limited deal with the Renault-Nissan (RENA.PA) (7201.T) alliance headed by Carlos Ghosn will give it the small-car technology and scope it needs in the face of tighter emissions and fuel economy standards.
In return, Renault-Nissan will get access to Daimler's engines for Nissan's luxury Infiniti brand and the opportunity to share vehicle platforms and bring down costs at a time when its own alliance has been seen as sputtering.
Cole said the deal could be a blueprint for future collaboration in a high-cost area: developing the engine, transmission and now battery-drive systems that power vehicles.
"The historic view is that the powertrain defines the personality of the vehicle in the eyes of consumers. That's probably not true anymore," he said.
FIAT TO FOLLOW?
For smaller players such as Japan's Suzuki Motor Corp (7269.T), developing technologies such as a complex hybrid system on its own was not an option, which is why it aligned itself with Volkswagen AG (VOWG_p.DE) late last year.
Similarly, last month, Mazda Motor (7261.T) struck a deal to buy hybrid technology from market-leader Toyota Motor (7203.T).
Elsewhere, Italy's Fiat last year teamed up with bankrupt Chrysler, and analysts said it could look for further partners in Asia after having formed joint ventures with Tata Motors Ltd (TAMO.BO) in India and others in China and Russia.
"I could easily see Fiat shopping for another alliance in Asia," said Logan Robinson, a professor at the University of Detroit Mercy School of Law and former auto executive.
China is likely to be a key. Its emergence as the world's largest car market has been a boon to sales for U.S., European and Japanese car makers, but it has also created competitors such as Geely (0175.HK) -- fresh off its acquisition of Sweden's Volvo -- with deep pockets and global ambitions.
Still, after the numerous false starts over the past two decades -- most notably with the spectacular break-up of DaimlerChrysler after nine years -- some analysts remain skeptical that alliances can deliver as promised.
"I'm hoping that others don't go down this path" taken by Renault-Nissan and Daimler, said Erich Merkle, analyst at Autoconomy.com. "If you look at the history of alliances...they have a very checkered past. Most of them haven't worked.
While financial markets tend to price progress in quarters, it can take four years or longer to capture the full cost savings from collaboration in developing a new vehicle even if everything goes as planned, analysts say.
TOUGH EXECUTION
Even Nissan and Renault, lauded as a rare example of an alliance that has worked, has had a mediocre start.
After a decade together, the partners admitted last year to needing deeper integration, putting in place a more formal structure to squeeze out synergies that engineers had resisted. The partnership saved near-bankrupt Nissan from demise, but Renault has fallen into a slump Ghosn has struggled to reverse.
That could be a lesson for Fiat CEO Sergio Marchionne, who faces the daunting task of integrating Chrysler after taking a 20 percent stake in the weakest U.S. carmaker out of a U.S.-government funded bankruptcy.
Marchionne has said that automakers need global sales of at least 6 million cars and trucks to be competitive on cost. The Daimler-Renault-Nissan alliance would just clear that hurdle with global sales of just over 6 million units.
Fiat-Chrysler remains short of the mark, closer to 4.5 million units. But size alone is no guarantee of success.
General Motors Co GM.UL is a case in point. After its own 2009 bankruptcy, GM, like crosstown rival Ford Motor Co (F.N), is struggling bring the focus back to its core brands, led by Chevy.
Even Toyota, the world's top automaker, has proven that the bigger the ship, the tougher it is to steer. Rather than seek tie-ups, Toyota has said it would slim down its vehicle line-up to become more nimble and efficient.
FLYING SOLO
Having failed to agree terms on a capital alliance with Frances PSA, Japan's Mitsubishi Motors is seen by analysts in need of a partner to offset the cost of developing advanced technologies in areas like battery-powered cars.
But Mitsubishi President Osamu Masuko told Reuters last month that equity-based tie-ups were no guarantee of success.
"We have to remember that a capital alliance is no panacea," Masuko said. "If it were, then why didn't it work for us with Chrysler? Or with Daimler? What happened with all the capital ties that General Motors had?"
Honda Motor Co (7267.T) also believes it can find new efficiencies in-house will as Japan's second-biggest automaker continues to shun alliances, much like BMW.
"The key now is figuring out how to efficiently develop and produce cars," Honda executive Fumihiko Ike said last month. "And if the company becomes too big, efficiencies will also fail."
Honda, which prides itself in being the world's top engine maker and one of the few carmakers to produce its own transmissions, says it is open to tying up with battery and other components makers to develop next-generation vehicles.
BMW, meanwhile, has project-based ties, including with PSA in small engines, and expects its cooperation on sourcing with Daimler will continue, notwithstanding the latter's deal with Renault and Nissan.
"We don't want to give up our independence," BMW Chief Financial Officer Friedrich Eichiner said. "I don't see a big problem if a manufacturer like Daimler is now cooperating with Nissan. They must have reasons to do that."
(Additional reporting by Soyoung Kim in DETROIT; Irene Preisinger in MUNICH; Jo Winterbottom in MILAN; John Bowker in MOSCOW; Helen Massy-Beresford in PARIS; William Rigby in SEATTLE; Editing by Lincoln Feast)
Source;
Car industry braces for further shakeup
Pressure to cut development costs intense Kana Inagaki
By KANA INAGAKI
Kyodo News
Kyodo News
YOKOHAMA — With Nissan Motor Co. and its French partner Renault SA looking to expand their clout through a new cross-sharing deal with Germany's Daimler AG, the big question is: who is next in the realignment of the global auto industry?
In Japan, experts say eyes are on Honda Motor Co., the nation's second-largest automaker, although it has so far shown no indication of ditching its trademark go-it-alone policy.
Pressure has been heavy on carmakers to pursue expansion of scale to save on development costs of highly expensive green technology and to secure their foothold in fast-growing emerging markets by offering affordable compacts.
In the latest agreement, the Nissan-Renault alliance and Daimler will mutually swap 3.1 percent in shares to cooperate in the development of next-generation compact cars and to share fuel-efficient engine technology.
Just a few months earlier, Suzuki Motor Corp. inked a capital tieup with Volkswagen AG, as the German automaker seeks to expand its presence in India, where Suzuki has established a solid presence, while the Japanese automaker turns to Volkswagen's expertise in developing environmentally friendly vehicles.
"It costs a lot to develop wide-ranging technologies, and there is no clear favorite among the scattered environmental technologies, including electric vehicles and hybrids," said Takashi Akiyama, vice president of SC-ABeam Automotive Consulting.
"Also, with the rapid expansion of emerging markets, it's hard for an automaker to make it on its own," he said. "Expansion of scale is necessary for survival, and further realignment in the industry is anticipated."
With dwindling choices for cross-border alliances, attention has naturally fallen on Honda, one of the strongest players in the industry. The automaker has continued to eke out profits, even as most auto giants sank into the red after the financial crisis hit in 2008.
"You need great energy to reach an understanding with an alliance partner and time is quickly lost during that process," Fumihiko Ike, Honda's head of Asia and Oceania operations, recently told reporters. "It's faster to do it alone."
But analysts said even Honda, which sells the Fit compact and the Insight hybrid, may eventually need to shift course and look outside as rivals pose a rising threat by becoming bigger and more cost-efficient.
"There is no need to immediately join forces since its products, centering on compact cars, are selling well," said Shigeru Matsumura, an auto analyst at SMBC Friend Research Center. "But Honda will probably not be able to stay the way it is as others form alliances and boost their cost competitiveness."
Tatsuya Mizuno, a former auto analyst at Fitch Ratings in Tokyo and current representative of consulting firm Mizuno Credit Advisory, also suggested Honda may ally with South Korea's Hyundai Motor Co. in a shakeup that he predicted will consolidate the industry into five major automotive groups.
The dramatic shift in the global auto sector also comes as an unprecedented safety crisis pounds the carefully cultivated reputation of Toyota Motor Corp., the world's largest carmaker.
With global sales of nearly 8 million vehicles, Toyota remains ahead in terms of both scale and product lineup with minicar maker Daihatsu Motor Co. and truck maker Hino Motors Ltd. under its wing.
A pioneer in gas-electric hybrid technology, it also has close ties with Mazda Motor Corp. and Fuji Heavy Industries Ltd., which makes the Subaru brand and is owned 16.5 percent by Toyota.
Yet, the current story of Toyota includes a series of safety lapses, which its president, Akio Toyoda, has blamed on an aggressive drive for volume at the expense of product quality.
"The advantages of scale are huge and will need to be pursued as they become increasingly important," Mizuno said. "But as the scale becomes bigger, the question is whether you can maintain strong management."
Despite the hype over the emergence of new alliances, deals have frequently collapsed in the past, including the breakup of Daimler and Chrysler Group LLC.
"When we came together with Chrysler, we were in agreement about the merger, but we hadn't had much thought about content of collaboration," Daimler Chairman Dieter Zetsche said at a news conference in Brussels, emphasizing that the relationship with Renault and Nissan will be "totally different."
Nissan President Carlos Ghosn, who concurrently serves as chief executive officer of Renault, said the "strategic cooperation" with Daimler — not to be mistaken with an alliance — will be long-term, while the pursuit of scale will continue as Nissan and Renault vie to become the No. 1 automotive group.
Source;
Toyota Pulls a 'General Motors'...Again
This is something that I am not happy seeing, Toyota is going down a slippery road taking this route....
As the February 2010 have rolled out, a number of sources noted that Toyota is responding to its plummet in the figures with incentives and 0% financing. While this seems like a sure-fire way to boost their sales in the short term, it also makes Toyota sound more and more like the General Motors of the 1970s and 80s.
Consider this: Over the past decade Toyota has gone against longstanding traditional mores governing parent company/parts supplier relationships by putting the screws to their suppliers even in the best of times in order to milk the most profit out of each part. In addition to abusing their suppliers, Toyota has put international growth above all else (even by their own admission). After the first indications that this growth strategy could be taking its toll on vehicle reliability (sludging problems and other issues in the early 2000s) they respond not by becoming more proactive about beefing up reliability, but by spending tens of millions on lobbying to either kill or postpone new safety regulations and limit the scope of their mandatory recalls. When their efforts to skirt around costly recalls finally begin to catch up to them, they issue a massive recall that still manages to not cover all of the cars the NHTSA has recieved complaints about (i.e., the pre-2007 Camry). This recall is quickly "resolved" with a fix that not everyone is entirely certain will even solve the main problem in the first place. In response to the sales numbers lagging from the recall, Toyota creates incentives the likes of which they have never before imagined, which will certainly lead to a further devaluation of the other Toyotas on the road and the erosion of one of their biggest selling-points (resale value).
It doesn't take a historian to see the General Motors-esque pattern developing here. ("Profit Above All Else -> Short Term Thinking -> Negative Results from Short Term Thinking (unreliability) -> More Short Term Thinking (lobbying to avoid repair costs rather than simply recalling the product and fixing future models) -> More Negative Results (increasing numbers of complaints and/or deaths) -> More Short Term Thinking (hastily executed recall that may not have even solved the problem entirely) -> Product Devaluation -> More Short Thinking (incentives) -> Further Product Devaluation) Heck, GM got it down to a science in the 1970s and 80s, right before they were forced to pay the price. One has to wonder how long Toyota will play the old school General Motors game, and what kind of impact this will have on them in the long term. As anyone familiar with the history of the domestic auto manufacturers knows, you can only mortgage against public goodwill and favorable opinions about your company for so long before your company's reputation is upside down and your credit is damaged irrevocably.
Source;
http://www.toyotamonitor.com/blog/1043077_toyota-pulls-a-general-motors-again
As the February 2010 have rolled out, a number of sources noted that Toyota is responding to its plummet in the figures with incentives and 0% financing. While this seems like a sure-fire way to boost their sales in the short term, it also makes Toyota sound more and more like the General Motors of the 1970s and 80s.Consider this: Over the past decade Toyota has gone against longstanding traditional mores governing parent company/parts supplier relationships by putting the screws to their suppliers even in the best of times in order to milk the most profit out of each part. In addition to abusing their suppliers, Toyota has put international growth above all else (even by their own admission). After the first indications that this growth strategy could be taking its toll on vehicle reliability (sludging problems and other issues in the early 2000s) they respond not by becoming more proactive about beefing up reliability, but by spending tens of millions on lobbying to either kill or postpone new safety regulations and limit the scope of their mandatory recalls. When their efforts to skirt around costly recalls finally begin to catch up to them, they issue a massive recall that still manages to not cover all of the cars the NHTSA has recieved complaints about (i.e., the pre-2007 Camry). This recall is quickly "resolved" with a fix that not everyone is entirely certain will even solve the main problem in the first place. In response to the sales numbers lagging from the recall, Toyota creates incentives the likes of which they have never before imagined, which will certainly lead to a further devaluation of the other Toyotas on the road and the erosion of one of their biggest selling-points (resale value).
It doesn't take a historian to see the General Motors-esque pattern developing here. ("Profit Above All Else -> Short Term Thinking -> Negative Results from Short Term Thinking (unreliability) -> More Short Term Thinking (lobbying to avoid repair costs rather than simply recalling the product and fixing future models) -> More Negative Results (increasing numbers of complaints and/or deaths) -> More Short Term Thinking (hastily executed recall that may not have even solved the problem entirely) -> Product Devaluation -> More Short Thinking (incentives) -> Further Product Devaluation) Heck, GM got it down to a science in the 1970s and 80s, right before they were forced to pay the price. One has to wonder how long Toyota will play the old school General Motors game, and what kind of impact this will have on them in the long term. As anyone familiar with the history of the domestic auto manufacturers knows, you can only mortgage against public goodwill and favorable opinions about your company for so long before your company's reputation is upside down and your credit is damaged irrevocably.
Source;
http://www.toyotamonitor.com/blog/1043077_toyota-pulls-a-general-motors-again
GM will wind down Hummer as the sale could not be completed
I guess the good news is that gas prices should go down with Hummer out of the game, it's that whole supply and demand thing.... alright, it's not that funny....
As expected, GM announced today that the deal to sell Hummer to Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to be completed and as a result the American branf will be wound down.
After Pontiac and Saturn, another one bites the dust! But don’t worry… GM will still continue to honor Hummer warranties and provide service support and spare parts to Hummer owners.
“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed,” said John Smith GM vice president of corporate planning and alliances. “GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”
Source;
http://www.4wheelsnews.com/gm-will-wind-down-hummer-as-the-sale-could-not-be-completed/
As expected, GM announced today that the deal to sell Hummer to Tengzhong Heavy Industrial Machines Co., Ltd. (Tengzhong) was unable to be completed and as a result the American branf will be wound down.After Pontiac and Saturn, another one bites the dust! But don’t worry… GM will still continue to honor Hummer warranties and provide service support and spare parts to Hummer owners.
“One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed,” said John Smith GM vice president of corporate planning and alliances. “GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”
Source;
http://www.4wheelsnews.com/gm-will-wind-down-hummer-as-the-sale-could-not-be-completed/
Toyota learns the dangers of being No. 1
At the end of the day you can say one thing about this whole Toyota debacle, they are doing the right thing.
When Toyota Motor Corp. (TM-N79.77----%) was on the brink of overtaking General Motors as the world's biggest auto maker in 2008, executives were busy sending out warning signals about the dangers of being No. 1.
Toyota is now witnessing the realization of those fears, caught in a mushrooming recall debacle affecting as many as eight million cars – a development many say underscores the difficulty of maintaining top-notch quality in a hasty expansion.
It may also be the manifestation of the “big-company disease” that Toyota President Akio Toyoda has vowed to quash since taking the helm last June, aiming to restore the company's solid foundation that he said was lost during a decade of rapid global growth.
Mr. Toyoda has not commented publicly on the faulty accelerators and floor mats since expressing regret for the deaths of four people in a crash linked to the problems in August last year.
“Toyota is the new GM in terms of experiencing quality glitches, overexpansion and the proliferation of new product models,” said Dennis Virag, president of Automotive Consulting Group.
“Toyota has been too aggressive and perhaps complacent in terms of focus on quality. They can't concentrate on the details with so many models.”
Toyota, Japan's largest company with a market capitalization of around $141-billion, produces dozens of models around the world and has more than 500 subsidiary companies.
Toyoda, who warned last year that his company faced the prospect of “capitulation to irrelevance or death“, citing a five-phase road to demise outlined by business scholar Jim Collins, has his work cut out for him.
The reason? Toyota's recent quality woes are not new.
As vehicle recalls mounted to more than a million a year, then-president Katsuaki Watanabe in 2006 assigned two executive vice-presidents to oversee quality improvements. One was tasked specifically to work closely with suppliers to catch design defects early.
The current recalls in North America and Europe involve accelerator pedals produced by CTS Corp.
Two years later, in 2008, Mr. Watanabe had said those efforts had borne fruit, and that recall cases had fallen dramatically. Indeed, the “back-to-basics” goal was one that Mr. Watanabe had promptly pledged when he took office as far back as 2003.
The latest recall, of unprecedented scale, throws the efforts back to square one.
Mr. Toyoda, the grandson of Toyota's founder, has outlined broad steps aimed at returning the company to profit and speed up decision making, but has yet to announce new plans to improve quality checks.
TOYOTA-BASHING
The level of attention on Toyota's woes – from consumer groups, media and the government – is also the manifestation of another major fear that Toyota has harboured: that public opinion could be unkind to those at the top.
In addition to the recall, Toyota has shut down sales of its best-selling vehicles in North America under pressure from the Obama administration to address the product safety issue, in an almost unheard-of intervention.
Unlike GM, Toyota has feared the backlash and shunned the spotlight as the world's biggest auto maker. As the Detroit giant – once the symbol of U.S. industrial might – faced bankruptcy last year, those worries had escalated.
Many industry watchers say matter-of-factly that Toyota's massive loss forecasts for this year were a deliberate attempt to prevent a potential bashing – a charge that Toyota denies.
Last May, Toyota projected an operating loss of a staggering ¥850-billion ($9.4-billion) for the financial year to March 31. It has since revised that to a ¥350-billion loss, but analysts expect it to end up at close to break-even.
“If I were the president, I would do the same thing,” said Toshiro Yoshinaga, an analyst at Aizawa Securities.
“As long as GM is sick, it wouldn't look good if Toyota turned a profit this year,” he said.
Many also see Toyota's handling of the current recall as an attempt to win over consumers' hearts.
Toyota said on Wednesday it would offer to replace floor mats or accelerator pedals on another 1.1 million vehicles across five models in the United States because many consumers had called asking for a remedy. A Toyota spokesman said there was in fact no known glitch in those models, and that the voluntary action was solely meant to appease worried drivers.
“Toyota is trying very hard to do the right thing and being bold and having large recalls to portray the fact that they are willing to stop at nothing and spare no expense so nobody gets hurt in their vehicles,” said Jake Fisher, automotive engineer at Consumer Reports.
Meanwhile, “challenger” GM has capitalized on Toyota's woes, saying it would offer incentives to U.S. consumers switching from Toyota cars.
But Mitsuru Kurokawa, an analyst at IHS Global Insight, said would-be Toyota buyers would not necessarily flock to U.S. brands, but rather to rivals such as Hyundai Motor.
“And if that happens, there's a chance that the criticism will then turn to Hyundai,” he said.
Source;
http://www.theglobeandmail.com/report-on-business/toyota-learns-the-dangers-of-being-no-1/article1447164/
Quality problems follow period of rapid expansion
When Toyota Motor Corp. (TM-N79.77----%) was on the brink of overtaking General Motors as the world's biggest auto maker in 2008, executives were busy sending out warning signals about the dangers of being No. 1.Toyota is now witnessing the realization of those fears, caught in a mushrooming recall debacle affecting as many as eight million cars – a development many say underscores the difficulty of maintaining top-notch quality in a hasty expansion.
It may also be the manifestation of the “big-company disease” that Toyota President Akio Toyoda has vowed to quash since taking the helm last June, aiming to restore the company's solid foundation that he said was lost during a decade of rapid global growth.
Mr. Toyoda has not commented publicly on the faulty accelerators and floor mats since expressing regret for the deaths of four people in a crash linked to the problems in August last year.
“Toyota is the new GM in terms of experiencing quality glitches, overexpansion and the proliferation of new product models,” said Dennis Virag, president of Automotive Consulting Group.
“Toyota has been too aggressive and perhaps complacent in terms of focus on quality. They can't concentrate on the details with so many models.”
Toyota, Japan's largest company with a market capitalization of around $141-billion, produces dozens of models around the world and has more than 500 subsidiary companies.
Toyoda, who warned last year that his company faced the prospect of “capitulation to irrelevance or death“, citing a five-phase road to demise outlined by business scholar Jim Collins, has his work cut out for him.
The reason? Toyota's recent quality woes are not new.
As vehicle recalls mounted to more than a million a year, then-president Katsuaki Watanabe in 2006 assigned two executive vice-presidents to oversee quality improvements. One was tasked specifically to work closely with suppliers to catch design defects early.
The current recalls in North America and Europe involve accelerator pedals produced by CTS Corp.
Two years later, in 2008, Mr. Watanabe had said those efforts had borne fruit, and that recall cases had fallen dramatically. Indeed, the “back-to-basics” goal was one that Mr. Watanabe had promptly pledged when he took office as far back as 2003.
The latest recall, of unprecedented scale, throws the efforts back to square one.
Mr. Toyoda, the grandson of Toyota's founder, has outlined broad steps aimed at returning the company to profit and speed up decision making, but has yet to announce new plans to improve quality checks.
TOYOTA-BASHING
The level of attention on Toyota's woes – from consumer groups, media and the government – is also the manifestation of another major fear that Toyota has harboured: that public opinion could be unkind to those at the top.
In addition to the recall, Toyota has shut down sales of its best-selling vehicles in North America under pressure from the Obama administration to address the product safety issue, in an almost unheard-of intervention.
Unlike GM, Toyota has feared the backlash and shunned the spotlight as the world's biggest auto maker. As the Detroit giant – once the symbol of U.S. industrial might – faced bankruptcy last year, those worries had escalated.
Many industry watchers say matter-of-factly that Toyota's massive loss forecasts for this year were a deliberate attempt to prevent a potential bashing – a charge that Toyota denies.
Last May, Toyota projected an operating loss of a staggering ¥850-billion ($9.4-billion) for the financial year to March 31. It has since revised that to a ¥350-billion loss, but analysts expect it to end up at close to break-even.
“If I were the president, I would do the same thing,” said Toshiro Yoshinaga, an analyst at Aizawa Securities.
“As long as GM is sick, it wouldn't look good if Toyota turned a profit this year,” he said.
Many also see Toyota's handling of the current recall as an attempt to win over consumers' hearts.
Toyota said on Wednesday it would offer to replace floor mats or accelerator pedals on another 1.1 million vehicles across five models in the United States because many consumers had called asking for a remedy. A Toyota spokesman said there was in fact no known glitch in those models, and that the voluntary action was solely meant to appease worried drivers.
“Toyota is trying very hard to do the right thing and being bold and having large recalls to portray the fact that they are willing to stop at nothing and spare no expense so nobody gets hurt in their vehicles,” said Jake Fisher, automotive engineer at Consumer Reports.
Meanwhile, “challenger” GM has capitalized on Toyota's woes, saying it would offer incentives to U.S. consumers switching from Toyota cars.
But Mitsuru Kurokawa, an analyst at IHS Global Insight, said would-be Toyota buyers would not necessarily flock to U.S. brands, but rather to rivals such as Hyundai Motor.
“And if that happens, there's a chance that the criticism will then turn to Hyundai,” he said.
Source;
http://www.theglobeandmail.com/report-on-business/toyota-learns-the-dangers-of-being-no-1/article1447164/
New car sales were strong in December; see last month's and last year's 20 top sellers
December's new car sales were the highest of any month in 2009, with many key models picking up significant volume and most automakers posting a sales gain over December 2008, but it wasn't enough to rescue the entire year.
The Ford F-Series full-size pickup and Toyota Camry midsize sedan were yet again the nation's favorite vehicle and car, respectively, both December and throughout 2009.
Ford also saw strong success from its redesigned Fusion midsize sedan, which jumped from 17th place in 2008 to a slot on the top-10 best-selling list of 2009, and its Focus compact and Escape midsize weren't far behind. The Escape was also the best-selling SUV in December, unseating the Honda CR-V that itself had stolen the crown from Ford's Explorer several years ago.
General Motors, meanwhile, had an excellent month for its Chevrolet Malibu midsize, which beat out the Fusion and Nissan's Altima in December to be the country's third-best-selling midsize sedan, behind the Camry and Honda Accord. The Chevrolet Equinox compact/midsize SUV also did well at over 12,000 units -- a record for the model -- and the compact Chevrolet Cobalt's sales improved from abysmal to just mediocre. GM did, however, see its best-seller -- the Chevrolet Silverado pickup -- slide below both the Toyota Camry and Corolla last month even as its own sales jumped significantly month-to-month. (see sales charts below the article)
In other Ford/GM news, the automakers' ongoing rivalry between the Mustang and Camaro retro muscle cars saw the Ford inch closer to the sales of its rival, narrowing a once-mighty gap to just over 1,000. This Mustang sales increase comes even as Camaro sales stay strong at 7,500 last month and in the same month that Ford announced it would give massive upgrades to next year's Mustang.
The top-ten list seems mostly familiar for the total of 2009, but some major changes in December suggest 2010 might be an interesting year for auto sales. See the two sales charts below:
Source (via autoblog);
http://www.examiner.com/x-1017-DC-Car-Examiner~y2010m1d5-New-car-sales-were-strong-in-December-see-last-months-and-last-years-20-top-sellers
The Ford F-Series full-size pickup and Toyota Camry midsize sedan were yet again the nation's favorite vehicle and car, respectively, both December and throughout 2009.
Ford also saw strong success from its redesigned Fusion midsize sedan, which jumped from 17th place in 2008 to a slot on the top-10 best-selling list of 2009, and its Focus compact and Escape midsize weren't far behind. The Escape was also the best-selling SUV in December, unseating the Honda CR-V that itself had stolen the crown from Ford's Explorer several years ago.
General Motors, meanwhile, had an excellent month for its Chevrolet Malibu midsize, which beat out the Fusion and Nissan's Altima in December to be the country's third-best-selling midsize sedan, behind the Camry and Honda Accord. The Chevrolet Equinox compact/midsize SUV also did well at over 12,000 units -- a record for the model -- and the compact Chevrolet Cobalt's sales improved from abysmal to just mediocre. GM did, however, see its best-seller -- the Chevrolet Silverado pickup -- slide below both the Toyota Camry and Corolla last month even as its own sales jumped significantly month-to-month. (see sales charts below the article)
In other Ford/GM news, the automakers' ongoing rivalry between the Mustang and Camaro retro muscle cars saw the Ford inch closer to the sales of its rival, narrowing a once-mighty gap to just over 1,000. This Mustang sales increase comes even as Camaro sales stay strong at 7,500 last month and in the same month that Ford announced it would give massive upgrades to next year's Mustang.
The top-ten list seems mostly familiar for the total of 2009, but some major changes in December suggest 2010 might be an interesting year for auto sales. See the two sales charts below:
Source (via autoblog);http://www.examiner.com/x-1017-DC-Car-Examiner~y2010m1d5-New-car-sales-were-strong-in-December-see-last-months-and-last-years-20-top-sellers
First-Gen Honda Civic Stalks GM's DC Office, Taunts Staff By Running For 30-Plus Years
Quick announcement: Will the owner of the rust-on-white first-gen Honda Civic parked outside GM's Washington DC office please stop stalking the office staff and remove your vehicle from out front. You're sort of freaking them out.Thanks ever so kindly to the GM Washington, DC staff for sending in these two pictures of the rusted Civic they called the "Mother of all clunkers" parked out front of their office yesterday.
Source;
http://jalopnik.com/5424215/first+gen-honda-civic-stalks-gms-dc-office-taunts-staff-by-running-for-30+plus-years
BusinessWeek: The Battle Raging Inside GM
Henderson's ouster leaves Whitacre and the board of mostly Detroit outsiders calling the shots. And that's making GM's executives jittery
By David Welch
The Dec.1 ouster of Frederick A. "Fritz" Henderson as General Motors' CEO was a surprise, but only in how fast it happened. Since GM emerged from bankruptcy in September, Chairman Edward Whitacre Jr. had become the de facto chief executive, and his board had reversed one of Henderson's biggest decisions. Now, as Whitacre looks for a new CEO (assuming he doesn't take the job himself), he and the directors are in the driver's seat. Whitacre and much of the board are industry outsiders. Now GM veterans are asking: Do they know what they're doing?
Dumping Henderson made tactical sense. He was a GM lifer and restructuring expert running a company that now needs a strategic visionary with expertise in reaching consumers. But firing and replacing him with Whitacre, at least on an interim basis, is risky. He will have to make big calls: how to fix the European business, burnish GM's brands, choose new vehicles, and build a management team. None of it will be easy for a former telecom guy who told employees on Dec.2 that he doesn't even know where his office is. "Now Whitacre is on the hot seat," says James N. Hall, principal of 2953 Analytics, a Detroit-area consulting firm. "He has to listen, trust the leadership team, and filter out GM's autoimmune system." (GM declined to comment.)
Nervous Executives
One of Whitacre's big challenges will be motivating a jittery staff. Right after Henderson's firing, Whitacre held a conference call with GM's top executives. Some asked if he wanted their resignations, too. Whitacre tried to assuage their concerns. "He was clear that we have good people," says an executive who was on the call. "He said: 'I can't do this without you.' "
But Whitacre's soothing words are cold comfort. He told Bloomberg News in mid-November that Henderson had the board's confidence. Two weeks later Henderson was gone. Several GM executives say the uncertainty is hurting morale. "It's almost like experience is a liability these days," one says.
Already, some top executives are getting antsy. Sources close to Vice-Chairman Robert A. Lutz say he is dismayed at Henderson's firing. The 77-year-old executive doesn't like how it was handled and has told people close to him he is not even sure what his role will be. If Lutz were to leave, GM would lose the one guy who has managed to bypass GM's sclerotic culture and build cars people will actually pay decent money for. "Is this the time to blow the whole thing up again?" wonders Joseph Phillippi, a veteran GM watcher and principal of Auto Trends, a New Jersey consulting firm.
While Whitacre looks for Henderson's replacement, GM's new hyper-independent board will be calling the shots. It's far from clear that the directors have made the right decisions so far. Particularly worrisome to GM veterans are the actions of private equity executives Steve Girsky, David Bonderman, and Daniel Akerson. All three were tough on Henderson in board meetings, say executives briefed on the discussions. They pushed Henderson to keep GM's German unit Opel rather than sell it. GM has long needed an independent board, but GM insiders fear that too much second-guessing could prevent the company from sticking to a clear strategy. (The three directors couldn't be reached for comment.)
The Opel Reversal
The decision to keep Opel was divisive. The board thought it too risky to cede control of GM's European engineering works, where the company designs its small and midsize cars. Plus, GM would lose up to 1.5million cars a year in sales. But holding on to the subsidiary is risky, too. Opel hasn't made money in a decade and is in the throes of restructuring. Finishing the job will cost GM some $3billion and divert executive focus from the troubled North American business and expanding operations in Asia and Latin America.
As Whitacre steers GM in the interim, he may learn a few lessons. He wants GM to push market share above 20% next year from 19.7% today. But as GM phases out Hummer, Pontiac, Saab, and Saturn, the carmaker will lose more buyers. What's more, Whitacre wants GM to expand market share with lower discounts. That's a prudent goal, but people don't rush to buy damaged brands for no reason. While GM's November sales fell just 1.5%, the company outspent its rivals on incentives by at least $1,000 a car, blowing $4,300 per vehicle, says Edmunds.com. If Whitacre pulls back too much on the discounts, sales could plummet.
As for Henderson's replacement, Whitacre and the board want a non-GM person or an industry outsider such as Alan Mulally, who left Boeing (BA) and has since managed to bring Ford Motor (F) back from the brink. But potential candidates will have to consider two facts of life: an activist chairman and board and a salary that GM's government minders have capped at $1million. "It's a sick company with a bad ownership structure and pay constraints," says Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. "I don't know who they will get." The only person willing to report to Ed Whitacre may wind up being—that's right—Ed Whitacre.
Welch is BusinessWeek's Detroit bureau chief.
Source;
http://www.businessweek.com/magazine/content/09_50/b4159000314215.htm?chan=autos_autos+--+lifestyle+subindex+page_top+stories
By David Welch
The Dec.1 ouster of Frederick A. "Fritz" Henderson as General Motors' CEO was a surprise, but only in how fast it happened. Since GM emerged from bankruptcy in September, Chairman Edward Whitacre Jr. had become the de facto chief executive, and his board had reversed one of Henderson's biggest decisions. Now, as Whitacre looks for a new CEO (assuming he doesn't take the job himself), he and the directors are in the driver's seat. Whitacre and much of the board are industry outsiders. Now GM veterans are asking: Do they know what they're doing?
Dumping Henderson made tactical sense. He was a GM lifer and restructuring expert running a company that now needs a strategic visionary with expertise in reaching consumers. But firing and replacing him with Whitacre, at least on an interim basis, is risky. He will have to make big calls: how to fix the European business, burnish GM's brands, choose new vehicles, and build a management team. None of it will be easy for a former telecom guy who told employees on Dec.2 that he doesn't even know where his office is. "Now Whitacre is on the hot seat," says James N. Hall, principal of 2953 Analytics, a Detroit-area consulting firm. "He has to listen, trust the leadership team, and filter out GM's autoimmune system." (GM declined to comment.)
Nervous Executives
One of Whitacre's big challenges will be motivating a jittery staff. Right after Henderson's firing, Whitacre held a conference call with GM's top executives. Some asked if he wanted their resignations, too. Whitacre tried to assuage their concerns. "He was clear that we have good people," says an executive who was on the call. "He said: 'I can't do this without you.' "
But Whitacre's soothing words are cold comfort. He told Bloomberg News in mid-November that Henderson had the board's confidence. Two weeks later Henderson was gone. Several GM executives say the uncertainty is hurting morale. "It's almost like experience is a liability these days," one says.
Already, some top executives are getting antsy. Sources close to Vice-Chairman Robert A. Lutz say he is dismayed at Henderson's firing. The 77-year-old executive doesn't like how it was handled and has told people close to him he is not even sure what his role will be. If Lutz were to leave, GM would lose the one guy who has managed to bypass GM's sclerotic culture and build cars people will actually pay decent money for. "Is this the time to blow the whole thing up again?" wonders Joseph Phillippi, a veteran GM watcher and principal of Auto Trends, a New Jersey consulting firm.
While Whitacre looks for Henderson's replacement, GM's new hyper-independent board will be calling the shots. It's far from clear that the directors have made the right decisions so far. Particularly worrisome to GM veterans are the actions of private equity executives Steve Girsky, David Bonderman, and Daniel Akerson. All three were tough on Henderson in board meetings, say executives briefed on the discussions. They pushed Henderson to keep GM's German unit Opel rather than sell it. GM has long needed an independent board, but GM insiders fear that too much second-guessing could prevent the company from sticking to a clear strategy. (The three directors couldn't be reached for comment.)
The Opel Reversal
The decision to keep Opel was divisive. The board thought it too risky to cede control of GM's European engineering works, where the company designs its small and midsize cars. Plus, GM would lose up to 1.5million cars a year in sales. But holding on to the subsidiary is risky, too. Opel hasn't made money in a decade and is in the throes of restructuring. Finishing the job will cost GM some $3billion and divert executive focus from the troubled North American business and expanding operations in Asia and Latin America.
As Whitacre steers GM in the interim, he may learn a few lessons. He wants GM to push market share above 20% next year from 19.7% today. But as GM phases out Hummer, Pontiac, Saab, and Saturn, the carmaker will lose more buyers. What's more, Whitacre wants GM to expand market share with lower discounts. That's a prudent goal, but people don't rush to buy damaged brands for no reason. While GM's November sales fell just 1.5%, the company outspent its rivals on incentives by at least $1,000 a car, blowing $4,300 per vehicle, says Edmunds.com. If Whitacre pulls back too much on the discounts, sales could plummet.
As for Henderson's replacement, Whitacre and the board want a non-GM person or an industry outsider such as Alan Mulally, who left Boeing (BA) and has since managed to bring Ford Motor (F) back from the brink. But potential candidates will have to consider two facts of life: an activist chairman and board and a salary that GM's government minders have capped at $1million. "It's a sick company with a bad ownership structure and pay constraints," says Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware. "I don't know who they will get." The only person willing to report to Ed Whitacre may wind up being—that's right—Ed Whitacre.
Welch is BusinessWeek's Detroit bureau chief.
Source;
http://www.businessweek.com/magazine/content/09_50/b4159000314215.htm?chan=autos_autos+--+lifestyle+subindex+page_top+stories
CarScoop: The Return of the Bandit: '70s Pontiac Trans Am Conversion of the 2010 Camaro comes to SEMA
Gotta say, I like this better than the 'regular Camaro'....
The team over at Trans Am Depot showed off a revised version of their Pontiac conversion of the 2010 Chevy Camaro at this week's SEMA Show. Compared to the original Phoenix T/A that was revealed earlier this year (see photos after the jump), the new model features some stylistic upgrades such as the reworked graphics, a new front fascia with quad headlights, revised lower air inlets and a ground effects package with chunky side skirts and a front apron, all of which bring closer in looks to the 1977-1978 Pontiac Trans Am.
The Phoenix T/A kit also includes other body parts such as the new hood with a shaker scoop, specific front fenders and rear fascia complete with taillights and a boot spoiler. The 20-inch gold or silver machined face snowflake wheels wrapped in Pirelli P-Zero 305/35ZR20 tires and the unique tail pipes plus the interior trim and badge appointments complete the cosmetic package.
Trans Am Depot will also offer a range of performance upgrades including a suspension and engine kit for Camaro SS' V8 powerhouse.
The company plans to sell the Phoenix T/A as a completed model (based on the Camaro SS) or as a conversion kit starting early next year.
Source;
http://carscoop.blogspot.com/2009/11/return-of-bandit-pontiac-trans-am.html
The team over at Trans Am Depot showed off a revised version of their Pontiac conversion of the 2010 Chevy Camaro at this week's SEMA Show. Compared to the original Phoenix T/A that was revealed earlier this year (see photos after the jump), the new model features some stylistic upgrades such as the reworked graphics, a new front fascia with quad headlights, revised lower air inlets and a ground effects package with chunky side skirts and a front apron, all of which bring closer in looks to the 1977-1978 Pontiac Trans Am.The Phoenix T/A kit also includes other body parts such as the new hood with a shaker scoop, specific front fenders and rear fascia complete with taillights and a boot spoiler. The 20-inch gold or silver machined face snowflake wheels wrapped in Pirelli P-Zero 305/35ZR20 tires and the unique tail pipes plus the interior trim and badge appointments complete the cosmetic package.
Trans Am Depot will also offer a range of performance upgrades including a suspension and engine kit for Camaro SS' V8 powerhouse.
The company plans to sell the Phoenix T/A as a completed model (based on the Camaro SS) or as a conversion kit starting early next year.
Source;
http://carscoop.blogspot.com/2009/11/return-of-bandit-pontiac-trans-am.html
50th Anniversary Chevrolet Corvette Stingray Concept Official Details
General Motors has given us a futuristic vision of technology and design with the 50th Anniversary Chevrolet Corvette Stingray Concept. Celebrating 50 years since the debut of the original Corvette Stingray Racer Concept in 1959, the latest addition to GM’s long line of stylistic show cars was first displayed at the 2009 Chicago Auto Show before it starred as “Sideswipe” in the movie Transformers: Revenge of the Fallen.The overall idea of the 50th Anniversary Chevrolet Corvette Stingray Concept was to incorporate past design cues in a fully futuristic shape. Speaking specifically about the car, Ed Welburn, vice president of GM Global Design, said: "By giving my creative team the freedom to design no-holds-barred vision concepts, it helps them push boundaries and look at projects from different perspectives."
The 50th Anniversary Chevrolet Corvette Stingray Concept is at this point solely a design exercise, not foreshadowing a production vehicle, though talk of the upcoming C7 Corvette has been circulating for some time.
Some of the concept’s features we could envisage making into a production Corvette one day include its clamshell hood, scissor-style doors, ergonomic seats, rear-view camera with night vision enhancement, and a high performance hybrid powertrain.
This latter element comes with interactive touch controls inside the cabin to allow the driver to customize the power and efficiency of the car and then share it with friends via an in-car camera system and advanced telemetrics.
For a full run-down of the potential hybrid and other powertrain options for the next-gen Corvette, check out John Voelcker's article over at Green Car Reports.
Source;
Car and Driver; Lingenfelter 455 T/A Concept
All I can say is....wow....
I am still waiting for the conversion kit below though....
Take one part 2010 Camaro and add some ’70s Trans-Am . . .
Of course, Chevy looks won’t do, so there’s a new front fascia, a shaker hood, revised rear quarter-panels, functional front fender vents, and an integrated decklid spoiler. New lighting front and rear as well as 20-inch honeycomb wheels complete the exterior transformation, while new blue woven-vinyl seats and a metal-turned instrument panel add retro feel to the inside. We have to admit, this thing really does resemble the 1970s original, and we like it.
Given the company’s penchant for pumping up horsepower, of course Lingenfelter would rework the engine, too. Under the striped hood—there’s no huge screaming chicken as of now—sits an aluminum 455-cubic-inch (7.5-liter) V-8 block with a lofty 11.5:1 compression ratio, ported-and-polished Lingenfelter heads from the Corvette Z06’s LS7, a forged crankshaft, and high-flow intake. The custom stainless-steel exhaust comes courtesy of Corsa. Power output is quoted at 655 hp and 610 lb-ft of torque, up significantly from the 426 hp of a stock manual Camaro SS. Also present are a new twin-disc clutch and flywheel assembly and tougher rear half-shafts to withstand the extra grunt. Handling alterations are limited to the addition of Nitto tires.
I am still waiting for the conversion kit below though....
Take one part 2010 Camaro and add some ’70s Trans-Am . . .Given Pontiac’s demise, it’s clear there won’t be any factory-baked Pontiac Trans-Am coming from General Motors. Enter the aftermarket, which has become suddenly eager to serve buyers wanting a new-school T/A. Indeed, joining the conversion kit offered by Phoenix is this
Lingenfelter take on turning your brand-new Camaro SS into the modern Trans-Am of your dreams. The concept debuts in the metal at this year’s SEMA show in Las Vegas.
Of course, Chevy looks won’t do, so there’s a new front fascia, a shaker hood, revised rear quarter-panels, functional front fender vents, and an integrated decklid spoiler. New lighting front and rear as well as 20-inch honeycomb wheels complete the exterior transformation, while new blue woven-vinyl seats and a metal-turned instrument panel add retro feel to the inside. We have to admit, this thing really does resemble the 1970s original, and we like it.
Given the company’s penchant for pumping up horsepower, of course Lingenfelter would rework the engine, too. Under the striped hood—there’s no huge screaming chicken as of now—sits an aluminum 455-cubic-inch (7.5-liter) V-8 block with a lofty 11.5:1 compression ratio, ported-and-polished Lingenfelter heads from the Corvette Z06’s LS7, a forged crankshaft, and high-flow intake. The custom stainless-steel exhaust comes courtesy of Corsa. Power output is quoted at 655 hp and 610 lb-ft of torque, up significantly from the 426 hp of a stock manual Camaro SS. Also present are a new twin-disc clutch and flywheel assembly and tougher rear half-shafts to withstand the extra grunt. Handling alterations are limited to the addition of Nitto tires.
Source;
End of the road for Saturn as Penske walks away
Deal to save brand falls apart after auto retailer fails to find another car maker to manufacture vehicles once GM stops production.
General Motors Co. (GM-N0.75----%) is killing off its Saturn brand, ending a two-decade-old experiment that involved GM using “a different kind of company” to fight off competition from Japan-based auto makers.
Saturn Corp., the brainchild of GM chairman Roger Smith during the 1980s, was set to be sold to Penske Automotive Group Inc., (PAG-N19.18----%) but Penske walked away from the deal Wednesday.
“Today's disappointing news comes at a time when we'd hoped for a successful launch of the Saturn brand into a new chapter,” GM president Fritz Henderson said in a statement.
The deal fell apart because Penske was unable to find another auto maker to manufacture Saturn models after GM stops manufacturing them early next decade.
“Penske Automotive Group negotiated the terms and conditions of an agreement with another manufacturer, however that agreement was rejected by that manufacturer's board of directors,” Penske said in a statement late Wednesday. “Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction.”
Penske, which is a major U.S. auto retailer and is the U.S. distributor of Mercedes-Benz's smart brand, had planned to take over Saturn's dealership and distribution network in the United States.
GM announced earlier this year that it would abandon the manufacturing and sale of Saturn vehicles as part of a major reduction in its brand portfolio.
It said it was closing Pontiac and seeking buyers for Saturn, Hummer and Saab. Saab and Hummer have been sold, although the deal to sell Hummer to a Chinese industrial company has not closed yet.
Saturn dealers in Canada, which were not part of the Penske deal, have been closing during the past few months.
The brand did little to stem the tide of market share losses that contributed to tens of billions of dollars in financial losses at GM this decade and its ultimate descent earlier this year into Chapter 11 bankruptcy protection after the credit crisis.
The first Saturn rolled off the assembly line in 1990. Sales peaked in 1994 at 286,000 cars annually and were in the 250,000 range for much of this decade.
“It's a national tragedy,” said David Aaker, a professor at the Haas School of Business at the University of California, Berkeley. In his book Building Strong Brands , Prof. Aaker discussed what made the Saturn brand so strong in the beginning. “It was the only organization in the U.S. that really had a quality culture to it,” he said. “A group of people committed to designing and building a quality car. It was unlike anything else any American car [maker] had done.”
Saturn's clustered dealer network allowed for a no-haggle, fixed pricing program, Prof. Aaker said. Since adjacent dealers weren't competing on price, they were able to deliver low-pressure sales tactics and focus on cultivating relationships with customers.
“The result was, they created an incredibly loyal customer base,” Prof. Aaker said. “It was like Harley-Davidson level loyalty, for a car that really didn't look all that different.”
A hundred people started the organization under the slogan, “A different kind of company,” separating themselves from GM and losing job security in the process, Prof. Aaker said. “The culture there was just so strong, and they were blessed with some really fine leaders at the beginning, which was indispensable.”
Consumer pride was also important to the brand.
“But then [GM] made the decision not to invest in the car for 10 years,” he said, and from that point on, it was just a matter of time before the brand was phased out.
The loss of Saturn is a blow to a loyal group attracted to the company's no-pressure sales approach and solid customer service. Gwen Wolansky, an Edmonton resident, bought her Saturn last year after negotiating with other companies.
“I found the Saturn dealer much more relaxing to deal with,” Ms. Wolansky said, adding it was the best deal financially and her cousin and friends spoke well of their Saturns. “No one's said anything bad about them.”
When Ms. Wolansky posted her concerns about paint chipping on a customer forum, she was surprised to hear directly from the company, which provided a contact to help with the paint issue. With the failure of Saturn, she's worried the problem might not get addressed.
“Now there's no incentive for them to keep you as a customer, so who knows,” she said.
Source;
http://www.theglobeandmail.com/globe-investor/end-of-the-road-for-saturn-as-penske-walks-away/article1307636/
Renault to supply Saturn-badged vehicles to Penske
GM was going to fold the Saturn Brand when Penske swooped in and is proposing a purchase to the rights in the US (not sure what that means to any Saturn dealers here in Canada). As far as I know, Penske has an agreement with GM for parts for the time being with GM ending any development of future Saturn badged GM vehicles. Looks like Penske may have found a suitor for his Saturn 'brand'.
Renault and Penske Automotive Group are working on a parts and car-sharing agreement. However, Nissan will not be working with rival Saturn; it’s strictly Renault that will be entering the alliance. The deal is on the supply of Renault cars to Saturn for the US.
Automotive News says that the deal opens the door to completely new and unique products for Saturn as far as US buyers are concerned. It is believed that another month is needed to seal the deal on Penske’s plan to buy Saturn. No other details have been released however. Saturn spokesman Tony Pordon said that it is also in talks with other carmakers. Penske will have to find a manufacturing partner for Saturn since Penske’s purchase of Saturn will not include any of the manufacturing facilities.
Source;
http://www.4wheelsnews.com/renault-to-supply-saturn-badged-vehicles-to-penske/#more-3423
Renault and Penske Automotive Group are working on a parts and car-sharing agreement. However, Nissan will not be working with rival Saturn; it’s strictly Renault that will be entering the alliance. The deal is on the supply of Renault cars to Saturn for the US.Automotive News says that the deal opens the door to completely new and unique products for Saturn as far as US buyers are concerned. It is believed that another month is needed to seal the deal on Penske’s plan to buy Saturn. No other details have been released however. Saturn spokesman Tony Pordon said that it is also in talks with other carmakers. Penske will have to find a manufacturing partner for Saturn since Penske’s purchase of Saturn will not include any of the manufacturing facilities.
Source;
http://www.4wheelsnews.com/renault-to-supply-saturn-badged-vehicles-to-penske/#more-3423
Official: General Motors has reached an agreement to sell Saab
An agreement has been reached between GM and a group led by Swedish supercar maker Koenigsegg for the sale of Saab. The agreement included a $600 million of assistance from the European Investment Bank (EIB) to be guaranteed by the government of Sweden.
There is a great possibility that no funds will proceed from Koenigsegg Group in the purchase of Saab and its assets. The sale of Saab is expected to be finalized at the end of the third quarter of the year. Saab, which filed for bankruptcy last February 20, has been in a restructuring process to enhance its attractiveness to potential buyers. With the innovative, entrepreneurial traits and financial stability of Koenigsegg Group together with Koenigsegg’s time tested and proven capability to come up with world-class Swedish performance vehicles in a totally competent way, the deal is considered to be Saab’s best opportunity to come out a better company.
Source;
http://www.4wheelsnews.com/official-general-motors-has-reached-an-agreement-to-sell-saab/
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