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General Motors has announced that its restructuring efforts are already paying off. The automaker has said that it expects to pay back the money it was loaned by to the U.S. government, as well as the Canadian and Ontario governments, earlier than expected.

GM received a total of $6.7 billion in loans from the U.S. Treasury as part of bankruptcy restructuring. As a result of this restructuring, the U.S. Government is still the single largest stake holder in the Detroit automaker. Although GM was eager to announce that progress has been made, CEO Fritz Henderson was quick to downplay the announcement and identified that the automaker still has plenty of work ahead.

Between the emergence of post-bankruptcy GM and the end of the quarter, GM has already lost $651 million. Although the loss is substantial, Wichita Chevrolet Service stresses that it’s still lower than what was originally predicted. According to Oshkosh Buick dealers, success in Asia and in emerging markets has helped the automaker overall. Cash for Clunkers was also beneficial.

As early as June 2010, GM could repay its debt to the U.S. government. While GM is currently a privately owned company, it also expects to begin selling stock again in 2010. All these developments show positive signs that GM is on its way to profitability again says Car Smart Auto Sales, but GM still has plenty of challenges ahead. Continue reading ‘General Motors Expects Early Loan Repayment’

As Chevrolet continues to hype and advertise the long-awaited Volt plug-in electric car, many are doubting the effect it will have on Chevy and GM sales. This negative view is shared by the Obama administration, which believes that the car will cost consumers too much and will not provide the demand and the volume that the embattled automaker truly needs.

While the Volt is seen as being technically advanced and possesses plenty of promise, the Chevy is not the commercially viable vehicle that the automaker needs right now. With an expected price far exceeds that of the gasoline-propelled equivalents, the manufacturing costs may not be justified by sales when it becomes available next year.

The outlook being adopted by the current administration is certainly a setback for GM admits Chevrolet Chicago. The Detroit automaker has used the Chevrolet model to change the perception of the brand, and it was this one car that Chevrolet hoped would transform the brand into an eco-friendly moniker.

Regardless, the Chevrolet Volt is heading into production next year. Despite doubt in the vehicle’s commercial success, Orlando Chevrolet dealers say its unique technology will allow the Volt to travel up to 40 miles on batteries alone. After 40 miles, the gasoline engine will then be able to extend the vehicle’s range.

Despite the advanced technology behind the Volt, the administration believes that GM overall remains behind Toyota and other automakers when it comes to developing green technologies. With hybrid technology in particular, GM has offered few options for affordable, efficient hybrid offerings according to hybrid shoppers among Gardena Honda dealers. Meanwhile, the Volt powertrain will likely put it financially out of reach for many eco-conscious buyers. When it becomes available next year, the Volt is expected to be priced around $40,000 – thousands more than other gasoline-powered sedans in its class.

Most hybrids only offer a short range of hybrid power, making the Chevy Volt’s technology unique. However, if the automaker is unable to reduce cost it will not provide the eco-friendly hit that it was hoping for. This may be where GM has made a fatal error. Despite years and plenty of money already invested in the Volt, it is unlikely that the automaker will be able over overtake Toyota and Honda as the green automotive technology leader. Even with the Volt, San Diego Toyota says that GM brands still lack the popular small cars that consumers are buying from Honda, Toyota, Hyundai, and others. Continue reading ‘Doubt Arises Around Chevrolet Volt’