Car Biz Buzz

Although the industry was shocked to hear that an offer from Spyker to by Saab was back on the table again, it appears that General Motors has not ceased the process of winding down the Swedish automaker.

No new announcements regarding Saab are ready to be made according to GM spokesman Chris Preuss. Clearly the determination of Spyker Cars is not convincing enough for GM to halt the end of this loss-generating brand. Continue reading ‘New Saab Offers Fail to Deter GM’

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’

General Motors lost its top spot as the as the highest selling automaker in the world when Toyota took the reigns as GM sales plummeted. Despite continued sales slumps and bankruptcy restructuring, GM narrowly missed overtaking Toyota in the first half of this year. Meanwhile, Volkswagen remains very close behind in the number three spot.

In the first six months of 2009, GM trailed Toyota sales by a mere 11,000 units, which has not surprised Dayton car dealers since the Detroit automaker has introduced several all-new models in recent months, including the popular all-new Chevy Camaro. Volkswagen has also done well, closing the gap with Toyota significantly to solidify its third place stance. Toyota was able to sell 463,805 more vehicles than Volkswagen.

Ford is the only other American automaker in the top ten lists, holding steady in the number five spot. Although Ford was able to avoid bankruptcy restructuring, Toyota Service Woodbridge observes that like Toyota, Ford still battles the effects of a sluggish economy, with new car demand stagnate worldwide.

In total, the top ten list for highest auto sales includes three manufacturers from Europe, five from Asian, and two from the U.S. With GM loosing the added sales of Saturn, Pontiac, Saab, and Hummer brands one dealer specializing in used cars in Philadelphia expects GM’s position on this list to change dramatically in the coming months. After holding on to the top spot for nearly 80 years, Toyota became the world’s largest automaker in 2008. Continue reading ‘GM Closes Gap With Toyota for Global Sales’

General Motors has announced that it will be exiting its partnership with Toyota. After 25 years, GM will cut its stake in the New United Motor Manufacturing Inc (NUMMI), which was a joint manufacturing venture between GM and Toyota. The partnership produced vehicles such as the Toyota Corolla and the Pontiac Vibe, as well as the Toyota Tacoma. The manufacturing facility is based in Fremont, CA and produces about 250,000 cars and 170,000 trucks per year.

Since GM has dissolved the Pontiac brand, the involvement in NUMMI was called into question as the Pontiac Vibe was the only GM vehicle currently coming out of the partnership. At first it appeared as though another GM brand would become a Toyota Matrix clone observed Newburgh Toyota, but with GM’s financial struggles it seems that simply walking away is the most feasible option at this time.

There’s been plenty of speculation about GM’s involvement in NUMMI following bankruptcy, but after trying to find solutions that made sense to all parties involved, NUMMI was labeled as part of the Old General Motors says Chicago Chevrolet dealers, and as such would be sold off through bankruptcy.

GM has expressed that the NUMMI partnership has been a positive relationship says one Poughkeepsie used cars dealer. While NUMMI will come to a close, GM is said to be open to future opportunities as well. As it stands, NUMMI employs about 4,500 workers and 890 salaried personnel. Continue reading ‘GM Leaves NUMMI Partnership’

General Motors is preparing to change the image of its lineup when it emerges from bankruptcy. While the much anticipated Chevrolet Volt is hoped to add to the automaker’s eco-friendly credentials, plenty of attention is also being placed on the Buick brand, particularly to compliment the expected demand for the attractive 2010 Buick Lacrosse.

Complimenting the release of the all-new Buck Lacrosse, Oklahoma City Car Loans say that GM is also planning a new hybrid model in the not too distant future. The stunning Lacrosse will be launched with two powerful V6 options to choose from, not to mention an ultra efficient 2.0-liter four cylinder engine with direct injection technology.

The announcement of a hybrid version of the new Buick Lacrosse comes on the heels of the cancellation of the Chevy Malibu hybrid, which will meet its demise next year according to Trenton Auto Service. The current Chevy Malibu and the Lacrosse hybrid already share similar a chassis and components and are built alongside each other.  The cancellation of the Malibu hybrid stems from poor sales, but Salt Lake City used car loans specialists notes that GM seems to think the Lacrosse hybrid will have better luck in the tough mid-sized hybrid segment.

By 2012, General Motors hopes to offer 14 hybrids. The recent announcement of the Lacrosse hybrid appears to be one of those 14, but it remains to be seen whether it can achieve the sales momentum that the Malibu hybrid seemed incapable of attaining. Continue reading ‘GM Announces Buick LaCrosse Hybrid in the Works’

Toyota and General Motors have had a strong partnership via NUMMI. This seemingly odd relationship was responsible for the Pontiac Vibe, which was build alongside the similar Toyota Matrix in a joint manufacturing venture based in California. With the Pontiac Vibe now discontinued, the question now is what will come of the NUMMI partnership.

Rumors have suggested that another model will soon be shared by the two automakers, perhaps also based on the Toyota Matrix suggests Oklahoma City Used Cars. However, details on these discussions remain unconfirmed. Another possibility for NUMMI is that GM will license Toyota’s hybrid technology for GM cars and trucks. This rumor has since been denied from GM executives in the paged of their online blog, the GM Fastlane Blog.

Although GM would no doubt benefit from Toyota’s stellar Synergy Drive Hybrid System, the automaker has pointed out that they are very busy developing their own internal hybrid technology. Chevrolet Financing Peoria say this proprietary technology will be available soon enough in the upcoming Chevrolet Volt electric vehicle. GM also has several other hybrid models under development, including a Buick hybrid crossover.

In discussing future hybrid technology plans, GM has singled out Buick as the main beneficiary of this new technology. A hybrid Enclave is currently in the works says Washington DC Buick, as well as a smaller hybrid crossover that will essentially fill the void in the GM lineup that will be left once the Vue Hybrid and the Saturn brand are sold. Continue reading ‘GM Dispels Rumors of Licensing Toyota Hybrid Technology’

Following is bankruptcy filing, General Motors has confirmed that the Hummer brand has at last found a buyer. Based on information just released, the buyer has been identified as Chinese firm Sichuan Tengzhong Heavy Industrial Machinery Co. The sales is certainly not soon enough for GM. The Hummer brand had seen ample popularity, but has more recently been handicapped by poor sales and poor consumer perception. GM said the sale was helped by the brand’s sales potential in emerging markets such as China and India.

The sale of Hummer to the Chinese company is expected to be wrapped up by the end of Q3 of this year. With the sale marks a big step for GM towards downsizing, and becoming one step closer to the company that it is supposed to emulate says one Pittsburgh used car dealer. In addition, the Hummer sale has also secured a number of jobs involving manufacturing and engineering personnel, not to mention jobs at Hummer dealerships. Auto Loans Detroit note that the deal also includes provisions for future product development by the new investor. This includes the potential for a new compact SUV.

Numerous details of the buyer and the transaction have yet to be released. Until that time, Oklahoma City Car Loans points out that Hummer will continue to manufacture and sell its vehicles. This includes production at GM’s Shreveport Assembly, which will produce the H3 model until 2010 at minimum.

Sales at Hummer are down over 60% compared with last year. This is a substantial decline that continues to hurt Hummer’s ailing parent company. Meanwhile, dealers have been unhappy by GM’s public bashing of the Hummer nameplate as they wished the pending sales could have been handed more discreetly. Continue reading ‘GM Officially Finds Buyer for Hummer’

The automotive industry is said to be in the midst of an auto recession. With auto sales at a record low, automakers and dealers alike are feeling the effects of a sluggish economy as car buying is down across the board. Those particularly hard hit are the Big Three Detroit automakers who have scrambled to cut costs and introduce exciting new models.

New car buyers are staying clear from dealerships for a number of reasons. Among these reasons are falling resale values says Chicago Used Cars. For buyers planning on trading-in their current vehicles, they’re going to be getting less cash for them, which may make all the difference for some consumers. This is especially true for those who want to trade-in their full-size trucks and SUVs. Dealers are having a hard enough time selling their existing stock of new trucks and SUVs, and your used truck probably is likely to be a turn off for many dealers.

Leasing is also contributing to the auto recession. Automakers have reevaluated their leasing programs as many drivers have failed to make payments. Chrysler has made the boldest step, eliminating leasing entirely. Once vehicles have been returned to the dealer, Philadelphia Used Cars say they’ve lost a significant amount of value following the duration of the lease, hurting dealers further.

Car buyers have also changed their buying habits to keep with the changing economic constraints. Increasingly, buyers are considering smaller, more fuel efficient cars rather than the once popular trucks and SUVs. With concerns over gas prices and plummeting resale values, drivers are focused on compacts, which have helped make companies like Honda and dealers like Lexington Auto Dealers slightly better off as buyers are drawn to their selection of compact and fuel efficient models.

Some analysts have varying opinions about when the auto business will recover, but many expect it to be quite some time before it happens. Some don’t expect the recovery to begin until 2013. Meanwhile, it’s expected that GM may declare bankruptcy in the coming months. Even Ford, who has recently added a string of all-new models to their lineup, will also be bringing European models to US shores, which San Diego Ford dealers expect will help boost its presence within the compact car market. But Ford is not only in promising new models by 2010 – GM and Chrysler both have many vehicles in the works in hopes of encouraging a rebound in domestic sales.

Perhaps one of the most anticipated vehicles from Detroit will be the Chevrolet Volt. As a top priority for GM’s development teams, the Volt will be one of the first electric models available to the general public, and Hartford Buick expects will help boost GM’s reputation and brand when it comes to car buyers demanding efficiency and the greenest technology available. But with such significant time and financial commitment that big question is whether the Chevy Volt will pay off. Continue reading ‘The Auto Recession Hits Hard’

Saturn has been in a precarious position for months. As General Motors is focusing on restricting and becoming profitable again, many brands under its wide umbrella have been at risk. Already Saab, Hummer, and Opel have found their way onto the chopping block. However, the fate Saturn, which has seen devastating sales despite a relatively fresh product lineup, has largely been unknown. It seems that now sources indicate the brand may be up for sale, and that there are parties that actually want to purchase the ailing brand.

Sources at Saturn have indicated that there is interest from investors in doing a spinoff to establish an independent Saturn brand. Additionally, there apparently are other parties that simply want to buy it. It is not currently known where these parties are other automakers, but perhaps one possible scenario is a Chinese or Indian automaker looking to get a foothold in the lucrative US market. Boston used car dealers say such as move would be a good investment as Such a purchase would give an Indian or Chinese automaker an instance dealer network.

In viability reports supplied to the U.S. Treasury in mid-February, GM said it would supply product to Saturn through the 2012 model year. Unfortunately for Connecticut Saturn and others, no further details were outlined as to a solution or potential buyer before that time. However, GM has formed a task force comprised of both GM executives and select Saturn dealers to determine the feasibility of a spin off or selling the brand completely.

Recently, General Motors had informed Saturn dealers that a team had been established to evaluate options for the Saturn brand. It’s expected that a clear plan may not be available until sometime in April. Meanwhile, Hartford Chevrolet knows all too well that sales continue to hurt Saturn and its parent. Sales in February fell 57.2 percent from last year, which accounts for a mere 6,338 vehicles. Continue reading ‘Saturn May Have Buyers’

Car dealers have faced plenty of hardships in recent months, and will continue to run into hardships. While the recent federal stimulus offers tax incentives for car buyers, it’s not all good news for car dealers. While money in the pockets of consumers is always a good thing amid falling car sales and weakened consumer confidence, new bailout plans from Chrysler and General Motors both have outlined ideas that may be even more costly to dealers.

While the automakers attempt to secure $38 billion in federal funding, the government first has to approve their restructuring plans. These plans include many hard decisions. For example, Middle Tennessee Chrysler dealers say Chrysler plans to cut dealer margins, production, and 3,000 workers. As dealers are facing problems, Chrysler dealers aren’t looking forward to reduced dealers and service contract margins. Chrysler executives say that Chrysler dealers must make sacrifices just as other Chrysler employees have. When it comes down to it, these steps must be executed should Chrysler hope to receive vital cash.

Some dealers have been outraged by further concessions being forced upon them, but other contend that it’s a small and minor step toward getting the industry back on track, which Philadelphia Cadillac dealers believe is an import goal for everyone. While there’s been no mention of changes to Chrysler’s brands, GM’s restructuring plan provides consolidation of its brands and dealerships. Additionally, the fate of some of GM’s brands, such as Saab, Hummer, and Saturn, remains somewhat unknown as GM’s restructuring has concentrated on its core brands, including Chevrolet, Buick, Pontiac, Cadillac, and GMC. While some are concerned about the fate of these brands, Louisville Chevy says that GM’s core brand will be most important in keeping the company in the black in the long run.

The effects have been felt less at pre-owned stores like Used Cars NC where the economy has helped to drive costs and prices down to a manageable level for customers.

Regardless of changes at Chrysler and General Motors, both automakers and their dealers are hoping that tax credit will help spur new car sales. The economy has kept many consumers from venturing into showroom, and with additional cash in hand Detroit Chevrolet dealers believe consumers will start spending again. The chief economist for the Nation Automobile Dealers Association also sees this happening, anticipated sales to rise several percentage points this year. While this may be a positive outlook, the 2009 has already had a bad start and many dealers are likely going to find themselves out of business. Continue reading ‘Dealers Affected By GM and Chrysler Cutbacks’