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GM recalling 1.3 million vehicles

Adam Marshall — Thu, 04 Mar 2010 07:05:02 +0000

Over 1.3 million General Motors compact cars are involved in a recall in North America due to a power steering problem which has been linked to 14 crashes and one injury.

Approximately 905,000 Cobalt models are being investigated by the U.S. safety regulators after receiving over 1,100 complaints of power steering failures which include 14 crashes.

The cars involved have a manufacture date between 2005-2010 for the Chevrolet Cobolt and 2007-2010 for the Pontiac G5 in the U.S. For Canada the 2005-2006 Pontiac Pursuit and in Mexico the 2005-2006 Pontiac G4.

Once GM finished its investigation which began in 2009 it informed the U.S. National Highway Traffic Safety Administration about the voluntary recall.

GM said the affected vehicles can still be driven safely, if the power steering fails greater effort is needed to steer the car when driven below 15 mph (24 kmh). A warning light and chime will indicate the driver of the failure.

“After our in-depth investigation, we found that this is a condition that takes time to develop. It tends to occur in older models out of warranty,” GM Vice President of Quality Jamie Hresko said in the statement.

“Recalling these vehicles is the right thing to do for our customers’ peace of mind,” he said.

GM are in the middle of developing a fix and customers will be informed when ready.

With the massive recall by Toyota still in the news both the public and motoring regulators are more sensitive and are treating all recalls seriously.

Pontiac Vibe included in Toyota sticking accelerator recall

Tim Beissmann — Sun, 24 Jan 2010 22:25:23 +0000

The Pontiac Vibe has been included in Toyota’s sticking accelerator recall that has affected more than 2.3 million vehicles in the US.

The Vibe crossover is the sister car to the Toyota Matrix and is engineered and built in California by Toyota.

General Motors spokesman, Alan Adler, said his company had not received any complaints about the 2009-2010 Vibe’s accelerator pedals sticking, but said it was now arranging for the recall work to be performed at GMC and Buick dealerships.

“We didn’t manufacture it, but we sell it, so we have a responsibility to make sure that Pontiac customers are taken care of,” he said.

The Vibe/Matrix was one part of the New United Motor Manufacturing Inc joint venture between GM and Toyota that ended after GM’s bankruptcy last year.

Meanwhile, Toyota is investigating a number of solutions to the sticking accelerator issue, which is now known to be caused by a device that controls the pedal’s return to idling position after being pressed to the floor. Toyota says it is caused by faulty pedal design by supplier, CTS Corp.

Toyota is looking at better pedal lubrication and re-engineering the faulty pedals, the latter option expected to take a significant amount of time to execute.

(with Automotive News)

Commodore could be exported to the US as a Chevrolet, Camaro likely for Australia

Tim Beissmann — Thu, 14 Jan 2010 00:08:03 +0000

Just months after Holden’s export program was rocked by the closure of Pontiac, the vice chairman of General Motors has breathed new life into Commodore’s future in the US.

Speaking at the North American International Auto Show in Detroit, Bob Lutz said there was the possibility of selling high-performance versions of the Commodore in limited numbers as a premium Chevrolet sedan, likening it to a four-door Corvette. In the US’s 13 million new vehicle market, terms like ‘limited numbers’ and ‘low volume’ can still mean as many as 40,000 units annually.

The Pontiac deal – through which Holden shipped 36,000 cars to the US and Canada in 2008 – was to be worth around $1 billion to Holden, after it invested $77 million in preparation for the export.

Right now, the biggest hurdle to Commodore re-entering the US market looks to be the after-effects of the global financial crisis, which sent GM into chapter 11 bankruptcy in June 2009.

While GM maintains it can pay off its almost $7 billion government debt by the middle of the year (much earlier than predicted by most analysts), the ongoing arbitration process with sacked dealers during last year’s restructuring could make Holden’s case a little tougher to push.

Strengthening the local brand’s chances of returning to the States is ex-Holden boss Mark Reuss – a man with a sweet spot for the Commodore – who is now the head of GM North America and poised to play a decisive role in any export program discussions.

Launching the Commodore as a Chevrolet would require some small restyling efforts, similar to those of the Pontiac G8.

Or the Chevrolet Caprice PPV (Police Patrol Vehicle) – another of Holden’s export opportunities in which it is vying for a share of the 60,000 to 70,0000 vehicles per year US police car market.

If it is successful, orders for the long-wheel-base Holden will be made by police and emergency services this year before delivery in early 2011.

Meanwhile, Lutz also confirmed that the Chevrolet Camaro is likely to be exported to Australia, with right-hand drive development of the traditional American muscle car currently a high priority at GM.

Given that the two-door coupe it is based on Holden architecture, Lutz said producing an Australian version would take little more than reversing the instrument panel.

Also speaking from Detroit, Holden managing director and CEO, Alan Batey, said an import program for the Camaro would not commence before 2011, and depended greatly on supply, given the vehicle’s popularity in North America.

If it did arrive in Australia, the Camaro would most likely be sold as a V8-only model and priced upwards of $75,000 – quite a hike from the car’s sub-US$32,000 starting price back home.

Batey admitted a local Camaro would be a niche prospect and one that was in the hands of GM North America.

Commodore’s Pontiac option

Adam Marshall — Wed, 13 Jan 2010 22:27:57 +0000

Holden offered a special edition Commodore with the Pontiac’s signature twin-snout grill last year, and because of a high demand the former G8 body will join the line-up permanently.

After parent company General Motors dumped the Pontiac brand the Commodore SS V-Series Special Edition was made to clear the excess stock of the Pontiac fascia. Since the special edition has been so popular Holden has decided to make the body kit a $1000 premium over the regular SS V-Series.

GM announced that the body style will join the Commodore line-up through to the end of its current cycle. The body kit comes with both front and rear styling known to Americans as the Pontiac G8 and will be available in sedan, wagon and ute.

It has been popular in Australia to re-badge Commodores with other General Motor’s brands like Chevrolet and Pontiac.

GM recalls 10,000 Pontiacs in the US over brake issues

Matt Brogan — Tue, 13 Oct 2009 21:48:01 +0000

Despite the Pontiac brand being officially dead, GM have recalled 10,119 Pontiac Vibe models over a cold weather brake issue.

Certain vacuum components of the Vibe’s braking system have been known to freeze in very low ambient temperatures, an issue facing owners in the US’s northern most states.

GM says that dealers will inspect and modify the brake vacuum lines on those Vibes covered by the recall. Vibes operated in warmer climate states are not being recalled, but GM has issued a service bulletin to modify the brake line free of charge.

The manufacturer says that the issue won’t prevent Vibes from coming to a stop, but it will increase stopping distances should the line freeze.

It is unclear if the Toyota Matrix, which was built along side the nearly-identical Vibe in a GM-Toyota joint-venture in California, will be recalled.

Holden-based LAPD police cruiser gains momentum

George Skentzos — Thu, 17 Sep 2009 09:00:37 +0000

While Holden’s North American exports may have ground to a halt with the closure of Pontiac spelling the demise of the Commodore-derived G8 Sedan, it seems a proposal to enter the car into law enforcement has gained momentum.

General Motors CEO, Fritz Henderson, made mention at the Frankfurt Motor Show that the carmaker has been working on a package for police applications and that he was quite optimistic it would be sourced from Australia.

Melbourne’s National Safety Agency has already put together a Chevrolet-badged Commodore for the 2009 APCO Australasia Conference & Exhibition in Sydney.

Holden is certainly not the only carmaker vying for this position, although senior GM executive, Bob Lutz, has indicated importing cars from Australia was by no means out of the question.

“While the large RWD cars may be made in Australia, they are an integral part of GM, contain US-built engines and transmissions and numerous other components, and are so ‘American’ in character that I don’t believe the law enforcement agencies would have any problems with the assembly origin of the vehicle. Plus, they’ll love it,” Mr Lutz said.

The expectation is for the Holden Commodore to become the vehicle of choice for the LAPD, which is seeking to replace its aging fleet of Ford Crown Victoria sedans which will be discontinued next year.

This could prove to be quite lucrative for Holden with more exports potentially going to Canada, the UK and the Middle East.

With any hope of migrating the Pontiac G8 to another brand dashed, this may be Holden’s last chance to revive its North American exports which represented about two-thirds of its total exports for the year.

Source: News.com.au

Toyota confirms closure of NUMMI plant

Matt Brogan — Fri, 28 Aug 2009 00:39:08 +0000

As we reported yesterday, Toyota had hinted that it would cease operations at its California, US, plant – a move now confirmed by the Japanese manufacturer.

The New United Motor Manufacturing Inc. plant (or NUMMI) – a joint venture plant between Toyota and GM – will cease production by March 2010.

The plant currently produces the Toyota Corolla and Tacoma utility (pictured above).

Corolla production will shift to Toyota’s Cambridge, Ontario, Canada plant, but it remains unclear where Tacoma production will be moved.

The NUMMI plant, which currently employees 4700 workers, opened in 1984 as a 50:50 joint venture between Toyota and General Motors.

The plant’s future had been unclear since GM announced it was closing its Pontiac division, the Pontiac Vibe was produced at NUMMI, and was withdrawing from the venture.

Today’s announcement will mark Toyota’s first US plant closure with at least one UK plant expected to halt production and one Japanese plant to suspend production next year also as Toyota manages it first loss and declining demand.

GM takes clean sweep of management

David Twomey — Fri, 24 Jul 2009 00:42:24 +0000

General Motors Company, the US government controlled company that has taken over the ‘good’ parts of GM, has swept the broom through senior management, announcing major changes in more than 20 senior roles.

Most significant, and interestingly indicating a trend for moving senior GM Europe staff back to the US before that business is sold off, Brent Dewar, GM’s European sales chief, has been named the new boss of Chevrolet.

Mr Dewar will become vice president of Chevrolet as part of a sweeping overhaul involving appointments and departures for about two-dozen executives.

As CarAdvice told you yesterday Bryan Nesbitt, currently chief of GM’s North American design, will become general manager of Cadillac.

Susan Docherty, will remain in charge of Buick and GMC as general manager, where she had previously had the title of vice president.

All three brand leaders will report to Bob Lutz, 77, who was named vice chairman of marketing as GM emerged from bankruptcy two weeks ago. He plans to make design the focus of GM’s advertising message.

Ed Peper, who was vice president in charge of Chevrolet, will take responsibility for Cadillac sales as general manager.

The intent is to integrate product design, marketing and advertising while allowing sales to have a separate focus. In that vein,Mr Peper will report to Mark LaNeve, vice president in charge of US sales and service.

Cadillac’s interim general manager, Steve Hill, 49, was named general manager of retail sales support.

The broom has swept several senior managers out the door with Gary Cowger, group vice president, global manufacturing and labour relations; Ralph Szygenda, group vice president and chief information officer; Troy Clarke, group vice president and president, GM North America; Maureen Kempston Darkes, group vice president, GM Latin America, Africa and Middle-East; and Michael Grimaldi, GM Vice President and CEO GM Daewoo all departing the company.

Bob Lutz: Pontiac G8 “too good to waste”

George Skentzos — Sun, 12 Jul 2009 05:06:35 +0000

The tug of war ensuing over the fate of the Australian-developed Pontiac G8 sedan following the demise of the Pontiac brand continues with a new report suggesting it will live on under the Chevrolet brand.

Having postponed his retirement to oversee the new GM’s brands, marketing, advertising and communications, Bob Lutz has supported the idea of a brand swap during an interview with Automobile Magazine.

Current GM CEO, Fritz Henderson, has been rather blunt in regards to the fate of the flagship Pontiac G8 GXP sedan with the idea of rebadging met with a resounding “no” during a recent webchat.

This may still be the case, with GM cautious about cannibalising sales from its high-performance Chevrolet line-up by introducing an even lower price point into the LS3 V8 range.

Although the standard G8 sedan’s future is now looking more promising with Bob Lutz having only positive comments for the Australian car.

“The last time we looked at [the G8], we decided that we would continue to import it as a Chevrolet,” Mr Lutz said. “It is kind of too good to waste.”

Citing export agreements with Australia and the fact that the local Holden Commodore is already sold in other parts of the world as a Chevrolet, Mr Lutz has assured fans that GM would not let the car perish in the US.

The Pontiac G8 is scheduled to end production later this year regardless, a move that could coincide with the introduction of the next generation Holden Commodore here in Australia, meaning US buyers could see a very different G8 if it arrives in the US as the Chevrolet Caprice.

Source: Automobile Magazine

GM CEO still blunt over Pontiac G8

George Skentzos — Wed, 17 Jun 2009 06:32:30 +0000

The fate of the Commodore-based Pontiac G8 seems to be a rather touchy subject for General Motors CEO, Fritz Henderson, who is still reluctant to elaborate on the reasoning behind the car’s impending withdrawal from US sale.

Mr Henderson participated in yet another web chat yesterday on the company’s FastLane Blog – this time exclusively with members of the motoring media – and again did not provide a completely convincing rationale for scrapping the model along with Pontiac.

While other questions even attracted a friendly personal greeting from Mr Henderson, in regards to the Pontiac G8 he could not have been more blunt or evasive – even ignoring the majority of the question.

From Greg Migliore–AutoWeek
Does the Pontiac G8 have any kind of future within General Motors as a re-badged model? What kinds of changes would need to be made to the car for it to be sold under another brand?

Fritz Henderson: I am not a fan of rebadging.

This response is in stark contrast to the tone carried by Mr Henderson previously throughout the session.

Fritz Henderson: Bernard, welcome and good to hear from you. got any good cartoons of me? re channelling resources, 100 per cent of our product, technology and marketing spend will now be focussed behind the four core brands and 34 nameplates. Each one needs to be a hit and that is our challenge/commitment.
my best to james!

It is certainly disappointing that Mr Henderson would not provide a valid response, however it is likely the G8’s fate had been sealed even before Pontiac’s demise.

Earlier reports predating any pending closure of Pontiac were already predicting that the G8 would not carry over to the next-generation model, citing limited corporate resources and fear of rising fuel-economy standards as the main motives.

With Pontiac to be phased out by 2010, this would seemingly provide a convenient opportunity for GM to cull the less-than-frugal sedan as the company shifts toward a greener image.

Pontiac G8 not yet dead – GM boss

David Twomey — Tue, 09 Jun 2009 04:10:19 +0000

Just when we thought we’d heard the final nail being hammered into the Pontiac G8 coffin by General Motors CEO Fritz Henderson along comes his product chief and throws another possible lifeline to the US version of the Holden Commodore.

Speaking in an interview with US automotive journal Automotive News, General Motors’ vice chairman of global product planning, Tom Stephens, has said the Pontiac G8 sedan might survive under another GM brand.

Mr Stephens stepped into former GM product boss Bob Lutz’s rather oversized shoes and now has the task of whipping the company’s somewhat reduced inventory of brands into shape.

As they are saying the US, Pontiac is toast at the end of the 2010 model year, when it will be closed down, or possibly sold off.

While some Australian media have been putting forward the idea of the US version of the Commodore being badged as a Chevrolet and sold to police forces, Mr Stephens doesn’t seem to strong on that idea.

“I know there’s still discussions on it,” said Mr Stephens. “But Chevrolet already has several sedans. How many sedans do you need to cover the waterfront?”

As Automotive News put it, “The G8, engineered and assembled by GM subsidiary Holden in Australia, has been a bright spot for Pontiac.

“With little advertising support, the sporty, rear-drive sedan, which starts at US$29,000, has sold well. Some versions have the same V-8 engine as the Chevrolet Corvette.”

Automotive News says some enthusiasts are lobbying GM to turn the G8 into a Chevrolet Impala SS. The current front-drive Impala SS is being phased out at the end of the 2009 model year.

The reports also suggest the G8 also could morph into a performance sedan for Buick, one of the GM brands that will survive, which has not had a rear-drive performance car since the mid-1980s.

Its also been reported that GM Holden in Australia has put a business case to Cadillac in the US for rear-drive models based on short- and long-wheelbase versions of the VE Commodore.

GM CEO confirms G8 will die with Pontiac

George Skentzos — Sat, 06 Jun 2009 08:47:48 +0000

With its adoptive parent stricken from the General Motors portfolio, it seems the Pontiac G8 is likely to suffer the same fate with General Motors President and CEO Fritz Henderson announcing that the Australian sedan would not be migrated to a new brand.

During a web chat earlier this week on GM’s FastLane blog, Mr. Henderson made it quite clear that the company had no plans to keep the G8 following the company’s restructuring.

Initial speculation – or perhaps more accurately, wishful thinking – had the Pontiac G8 pegged to join the Chevrolet family or perhaps even Cadillac as an entry-level model.

This rumour has been bluntly denied by Mr. Henderson who responded simply with “no.” when asked whether the G8 would live on by a GM employee during the web chat.

Continuing support for the Holden-based G8 was also met with disappointment during a more structured question and answer session with the General Motors President and CEO.

While participating in the session, Robert Hammen posed this scenario to Mr. Henderson:

“I know you have also stated that the G8 won’t be rebadged as another manufacturer’s car (i.e. a Chevrolet). Might I ask you to reconsider. Find a way to take Holden’s next-generation VE platform vehicle, call it the new Chevy Impala, build it at Oshawa alongside the Camaro, and keep the people like me happy.

No economical RWD sedans = no more new GM purchases for me (sorry, a starting-at-$37K CTS isn’t in my price range new). I recognize the problems the new CAFE regulations will present, but there is still a several year window of time to sell a ton of these vehicles (including police/taxi fleets who will have fewer choices when Ford discontinues the elderly Crown Vic/Grand Marquis/Town Car platform). I know fleet ain’t great, but I think you’d sell a ton of these to regular folks, too (what’s the fleet penetration of the current long-in-the-tooth Impala?). Build these on the Flex line at Oshawa, with a mix of models like Holden does (V6, V8, lux, sport, et. al.) and you’ll have a winner on your hands. The platform is simply too good to ignore, going forward. To do so would be incredibly foolish.”

General Motors President and CEO Fritz Henderson responded with the following:

“Robert, I appreciate your comment. Certainly, the G8 is going to be one of the Pontiacs we’ll miss. But, we haven’t closed the door on RWD now or in the future. You point out both the Camaro, which is definitely in the mainstream price range of today’s cars, and the CTS, which is an amazing value in the luxury sport segment. As we map out our future vehicle needs, if we can find the right opportunity and price point to do a world-class RWD car, you can bet we’ll consider it.”

There is a bitter-sweet silver lining with GM still committed to the Australian-developed Chevrolet Camaro, however this does little to improve Holden’s export situation as it is built at GM’s Oshawa plant in Canada.

GM tells 1600 US dealers “it’s over”

David Twomey — Sat, 16 May 2009 05:50:18 +0000

General Motors Corporation has said it will drop about 1600 US dealers as it struggles to slash billions of dollars in operating costs and debt ahead of an anticipated bankruptcy filing by the end of this month.

Taken together with a similar announcement by bankrupt Chrysler LLC, now in a merger with Italian carmaker Fiat, a day earlier, more than 2300 US car retailers have been put on notice that the two embattled companies are eliminating them.

Reuters Newsagency said the unprecedented closures under the direction of President Obama’s administration put an estimated 100,000 jobs at risk and showed the economic pain from the collapse of the two Detroit-based carmakers spreading across the United States.

“This is going to be a mess,” said Atlanta-based dealer consultant Jim Ziegler. “These dealerships are crucial to the local communities. Dealers are big advertisers. There will be a lot of ripple effects.”

GM said it planned to drop about 1100 of its smaller and less profitable dealerships by letting their franchise agreements expire when they come due in October 2010.

The company also expects to drop another 470 dealerships as it cuts its Saab, Hummer and Saturn brands.

After other dealerships fold or merge in coming months, the plan is for GM to end up with about 3600 showrooms by the end of next year for its Chevrolet, Cadillac, Buick and GMC brands.

That would represent a 40 per cent reduction in GM’s far-flung dealership network that has been protected until now by a patchwork of state franchise laws that made carmakers reluctant to move quickly to drop dealers.

GM spent more than US$1 billion to close its Oldsmobile division and shut down about 2800 dealerships earlier this decade, an experience that made it reluctant to take on its widely recognised problem of having too many dealers competing for a shrinking share of US vehicle sales.

GM is not offering dealers any compensation this time but offered to help them wind down their businesses.

Reuters says the risk of a drawn-out legal battle is another reason analysts believe it will follow Chrysler into a bankruptcy filing.

GM dealers targeted for closure were notified on Friday by letter, while those who were spared received no letter.

The National Automobile Dealers Association had lobbied the US Congress and the automotive task force under the US Treasury Department to stop or slow the closures.

“We view GM’s action with a profound sense of sadness and disappointment,” the business group said in a statement.

Pontiac move won’t affect Holden

David Twomey — Wed, 29 Apr 2009 01:12:55 +0000

GM Holden will lose one of its biggest export models following the move by United States parent company General Motors to dump the Pontiac brand, but says the move won’t affect jobs locally.

Holden produces the Pontiac G8, a version of the Commodore, for the US market.

However, in an announcement yesterday GM said it would phase out Pontiac by the end of 2010 to focus on four core brands in the US – Chevrolet, Cadillac, Buick and GMC.

It will also accelerate the shutdown of some American car assembly operations and cut extra jobs in the US.

Holden spokesman Scott Whiffin has told CarAdvice there would not be any impact on jobs in Australia.

“G8’s are assembled at our plant at Elizabeth SA where we have been modifying our production volumes and we will continue to do so, Mr Whiffin said.

“Notwithstanding the fact that this has only just been announced, we don’t envisage there will be any job losses at Elizabeth as a result of this decision.”

“We’ve just been made aware that GM intends to eliminate its Pontiac brand from the end of 2010 and continue with the four core brands of Cadillac, Chevrolet, Buick and GMC.

“GM is having to make some tough decisions as part of its viability planning in the wake of the Global Economic Crisis and this is unquestionably one of those tough decisions.

“There are direct implications for Holden in this and specifically our Pontiac G8 export program.

“We will work with Pontiac to manage the phase-out of the G8 through to the end of next year. The announcement has only just occurred so we don’t know what their expectations might be, as the car is currently selling really well.

“It is true to say were disappointed the G8 program is coming to an end – it is a great car that has been exceptionally well received and reviewed in the US.

“It’s worth noting that we shipped more than 36,500 G8’s to North America in 2008. Our focus now is on finding new markets for what is a world-class vehicle in addition to continuing to export cars to Asia, Africa, Europe and the Middle East.

Holden has already announced a decision to cut its afternoon shift from early next month with plans to run two teams on a single day shift, each working one week on and one week off.

The move will cut wages for local workers but retain the 3000 jobs at the Elizabeth manufacturing facility in Adelaide.

The company said it would also push ahead with plans to build a new small car in Adelaide from 2010.

Leaner GM dumps Pontiac

David Twomey — Mon, 27 Apr 2009 13:13:38 +0000

General Motors has decided to abandon one of its most revered nameplates, that of Pontiac, as part of its desperate measures to save itself from Chapter 11 bankruptcy in the United States.

At a press conference in Detroit a short while ago the Chief Executive Officer of General Motors, Fritz Henderson, outlined “an updated Viability Plan that will speed the reinvention of GM’s US operations into a leaner, more customer-focused, and more cost-competitive automaker.”

Mr Henderson said the Viability Plan is included in an exchange offer whereby GM is offering certain bondholders shares of GM common stock and accrued interest in exchange for certain outstanding notes.

Significant changes include:
* A focus on four core brands in the US – Chevrolet, Cadillac, Buick and GMC – with fewer nameplates and a more competitive level of marketing support per brand.
* A more aggressive restructuring of GM’s US dealer organization to better focus dealer resources for improved sales and customer service.
* Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.
* Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a US total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.

“We are taking tough but necessary actions that are critical to GM’s long-term viability,” said Mr Henderson, GM president and CEO.

“Our responsibility is clear – to secure GM’s future – and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team.”

Mr Henderson said that as part of the revised Viability Plan and the need to move faster and further, GM in the US will focus its resources on four core brands, Chevrolet, Cadillac, Buick and GMC.

He said, “The Pontiac brand will be phased out by the end of 2010.”

GM will offer a total of 34 nameplates in 2010, a reduction of 29 per cent from 48 nameplates in 2008, reflecting both the reduction in brands and continued emphasis on fewer and stronger entries.

He said this four-brand strategy would enable GM to better focus its new product development programs and provide more competitive levels of market support.

Mr Henderson added that the revised plan moves up the resolution of Saab, Saturn, and Hummer to the end of 2009, at the latest.

Updates on these brands would be provided as these initiatives progressed.

There was no mention of the future of Opel in Germany or Holden in Australia.

He said; ”Very importantly, development and testing of the Chevrolet Volt extended-range electric car remains on track for start of production by the end of 2010 and arrival in Chevrolet dealer showrooms soon thereafter.

“The Viability Plan reflects the direction of President Obama and the US Treasury that GM should go further and faster on our restructuring,” Mr Henderson said.

“We appreciate their support and direction. This stronger, leaner business model will enable GM to keep doing what it does best – provide great new cars, trucks and crossovers to our customers, and continue to develop new advanced propulsion technologies that are vital for our country’s economy and environment.”

GM CEO says bankruptcy ‘probable’

David Twomey — Mon, 20 Apr 2009 00:58:08 +0000

General Motors Corporation chief executive officer, Mr Fritz Henderson, says a bankruptcy filing is “probable” because of the restructuring goals GM must meet to get more US government loans, but that isn’t the company’s preferred option.

In a conference call with journalists, Mr Henderson said GM was working on two parallel plans: one that involves bankruptcy and one that doesn’t.

“Contingency planning is under way,” he says. “We are on several tracks.”

Mr Henderson also said GM would need more government aid sometime in the second quarter of 2009, although the timing had yet to be decided.

In its viability plan filed on February 17, the company said it would need $US4.6 billion in the quarter, and that hadn’t changed, he said.

“At this point, it would be premature to say that there has been an approval for further funding, at least from a GM perspective.”

GM has received $US13.4 billion in government loans, and it must meet strict requirements to cut labour costs and debt by June 1.

Mr Henderson said the company would be prepared to file for bankruptcy if it was unable to reach those goals out of court.

The decision to file for bankruptcy would be made with the Treasury Department and GM’s board of directors, but the government was not pressuring GM to file, Mr Henderson added.

“I felt several weeks ago that it would be more probable that we would need to go through a bankruptcy process,” he told reporters.

“I certainly feel that way. That continues today, but I wouldn’t be able to hazard a guess as to what the probabilities would be.”

If GM does file for bankruptcy, Mr Henderson said speed was important. GM would seek agreements with creditors and union before filing, or go through a fast in-court process.

“It’s all about speed,” he said. “This environment is not helpful for us.”

Mr Henderson said GM has been focused on rebuilding its viability strategy so it hasn’t yet launched intensive discussions with its bondholders.

Talks with the United Auto Workers, he said, are second in line to Chrysler, which faces an April 30 deadline to restructure and forge an alliance with Italy’s Fiat Group.

Mr Henderson emphasised that GM’s restructuring plan called for the carmaker to keep four core brands, Chevrolet, Cadillac, GMC and Buick, adding that GMC and Buick were highly profitable.

Mr Henderson did not comment on the future of overseas subsidiaries, such as GM Holden in Australia, but the company has said in the past that Holden was a viable part of its future plans and has indicated it would remain within GM.

He also said the company would not sell its ACDelco parts division, despite having potential buyers.

“It’s a highly profitable business for us, it’s creating good, strong cash flow,” Mr Henderson said. “Our conclusion was that we weren’t going to get the value for the business. We’d rather keep it and grow it.”

Mr Henderson also said April sales were “OK”, but he did not elaborate.

Global downturn hits hard – pictures

Karl Peskett — Thu, 19 Mar 2009 22:45:18 +0000

They say a picture tells a thousand words. Here are just three powerful pictorial examples of the credit crunch closing in, in the United States.

San Rafael Chevrolet Saab Hummer Hyundai closed its doors recently, leaving dozens of employees out of work. Photo: Justin Sullivan/Getty Images

In Newark, California, a sign informs readers that the Fremont Pontiac GMC dealership will never re-open. Photo: AP Photo/Paul Sakuma

At the Atlantic Marine Terminal at the port of Baltimore, Maryland, Dodge SUVs sit idle, unsold. More than 57,000 cars are currently sitting at the port, waiting for buyers. Maryland recently paid US$5.26 million for almost 10 hectares of additional car storage space near the port, freeing space for more cargo, as these cars just aren’t moving. Photo: Chip Somodevilla/Getty Images

Click on the pictures for higher resolution versions.

Source: Boston.com

GM considers Chapter 11, new company – reports

David Twomey — Mon, 16 Feb 2009 01:55:08 +0000

It’s been talked about a lot in recent months but now it seems that General Motors headquarters in Detroit is seriously considering a Chapter 11 bankruptcy filing ahead of a deadline tomorrow for a plan to deal with the company’s current financial crisis.

A report on Reuters newsagency says that General Motors Corporation, nearing a Tuesday deadline to present a viability plan to the US government, is considering as one option a Chapter 11 bankruptcy filing that would create a new company.

The plan was also reported on in the highly reputable Wall Street Journal, which said in its Saturday edition: “One plan includes a Chapter 11 filing that would assemble all of GM’s viable assets, including some US brands and international operations, into a new company.”

The newspaper said: “The undesirable assets would be liquidated or sold under protection of a bankruptcy court. Contracts with bondholders, unions, dealers and suppliers would also be reworked.”

Citing “people familiar with the matter,” the story said that GM could also ask for additional government funds to stave off a bankruptcy filing.

GM declined to comment, the story said.

General Motors and Chrysler LLC face a Tuesday deadline to file restructuring plans to the government in exchange for receiving US$17.4 billion in federal loans.

Carmakers have struggled as US car sales have tumbled amid a recessionary economy. US car sales in January tumbled to a 27-year low.

GM has been in talks with bondholders and the United Auto Workers union to get an agreement on a restructuring that would wipe out about US$28 billion in debt for the auto maker, sources have told Reuters.

However, it appears unlikely a deal could be reached by the Tuesday deadline, they said.

GM has already announced plans to cut 10,000 salaried workers worldwide, or 14 percent of its staff, impose pay cuts for most remaining white-collar US workers and has offered buyouts to its 62,000 US workers represented by the UAW.

In addition, it is trying to sell its Hummer SUV and Swedish Saab brands and is reviewing the status of its Saturn brand.

GM cancels Holden global RWD platform

George Skentzos — Fri, 16 Jan 2009 08:25:59 +0000

Overseas interest in GM Holden’s billion dollar baby is no more, with General Motors global product development vice-chairman Bob Lutz announcing a halt to all future rear-wheel-drive large-car development for North America.

The current Pontiac G8 sedan and Chevrolet Camaro were to be just the first of many Australian exports destined for the US market as part of a global portfolio based on the Holden-developed Zeta architecture.

However increasingly frugal fuel-economy legislation combined with the global economic crisis has made the Zeta architecture near redundant in the current market climate.

“The strategy we had a few years ago of basically deriving a whole sweeping global portfolio off the Australian Zeta architecture … frankly, we have had to abandon that dream,” Mr Lutz said.”

“This is because, whether you are in the United States or in China, fuel economy mandates are getting more and more severe, and we just could not base our strategy on doing relatively large and relatively heavy rear-wheel-drive cars.”

The first casualty of this decision came with the cancellation of the Pontiac G8 ST last week – just months before it was due to arrive in showrooms across North America.

The future of its sedan sibling at this stage is far more certain, with Mr Lutz revealing the fate of the Pontiac G8 in the US relies completely on GM’s strategic review of the ailing brand.

“We’ve said that we are going to focus Pontiac down to one or two entries – and for the time being one of the two entries will be the G8, the other being the Pontiac Vibe, and of course the Solstice Roadster and Coupe – and that’s basically the Pontiac line-up.”

This decision will not affect recently announced plans to develop and assemble a next-generation small car at GM Holden’s Elizabeth plant in South Australia, an initiative prioritised by managing director and CEO Mark Reuss to ensure the future viability of the Australian icon.

“Holden has basically committed to localising a compact car for Australia’s future because we see that is where the growth is,” said Mr Reuss.

Mr Lutz also commented that the next-generation Holden Commodore would arrive as scheduled for the Australian market in the next few years and would continue to use the Zeta architecture.

Source: GoAuto

GM cancels Pontiac G8 ST export

George Skentzos — Tue, 06 Jan 2009 23:36:40 +0000

General Motors has announced it has cancelled plans to introduce the Holden-derived GT Sport Truck into the US under the Pontiac nameplate in the wake of the national economic meltdown.

The decision is in part due to GM’s new approach to turn Pontiac into a “niche brand” as outlined in a plan it submitted to Congress last year.

As a result, GM considers the G8 ST to be a low-volume niche product which doesn’t meet the requirements of the restructured Pontiac brand – with no plans to introduce the vehicle for another GM brand.

“With Pontiac being more focused on sporty, fun-to-drive cars, we took a long look at the ST and it didn’t fit with what our future vision of Pontiac would be,” said Pontiac spokesman Jim Hopson. “At that point, we decided to not proceed with this vehicle.”

Based on the Holden VE Ute, the new G8 ST was to debut early this year alongside its Australian sibling – the G8 sedan, which was launched in March 2008.

“The way the business is today, we want the dealers to focus on the great products we do have: the G6 sedan and the Vibe,” Russ Clark, executive director of product marketing for Pontiac, Buick and GMC, said.

This sentiment certainly does not bode well for Holden, reaffirming the idea that the viability of the G8 sedan in the US market is also in question.

“We’ll be bringing the entries down in Pontiac,” Clark said. “It’s six right now. It’ll be less than six but more than one, so what it’ll be ultimately? We’re working on that now.”

Previous trends indicate this number is likely to be less rather than more, with GM previously having restructured Buick from having seven nameplates in 2005 to three now.

Holden spokesman Jonathan Rose said the cancellation of the G8 ST export would not impact on production schedules or jobs at the Elizabeth plant.

“The decision doesn’t alter the foundations of our export program,” he said. “It would have been an extension of the export program. That now won’t occur.”

Holden will continue production of the G8 Sedan, G8 GT and newly introduced G8 GXP for the U.S. market where around 15,000 have been sold so far.

Rose has said the decision is as a result of Pontiac becoming a niche sports car brand, with GM deciding the G8 ST did not fit that image.