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REPORT: GM to speed up development of vehicles delayed by bankruptcy

Chris Shunk — Fri, 18 Dec 2009 18:31:00 EST

Filed under: Chevrolet, GM, Earnings/Financials

Prior to declaring bankruptcy, General Motors began delaying new products in an effort to conserve cash. The news was disappointing to enthusiasts and brand loyalists, but with its cash piles dwindling, the General didn't have many alternatives. Post-bankruptcy, GM finds itself with $40 billion in cash and a lot less overhead, so where is the money being spent? Automotive News reports that Vice Chairman Bob Lutz confirms that many of the products that were delayed are now being accelerated, adding "Once we got out of the bankruptcy and started having money available, we were able to pull a lot of our programs forward."

One example of the pull-forward is the next-generation Chevrolet Malibu. Early this Fall, GM told us that the next Malibu would arrive in 2012, but Lutz says that time frame has been pulled up to 2011. The next Malibu will reportedly be all-new with a platform based off of the Buick LaCrosse and 2011 Buick Regal. The new 'Bu will apparently have a shorter wheelbase than the current model while still managing more interior room.

Lutz told AN that the uplevel Malibu will have chrome appliques lining the side windows, a trait he says is associated with German and Japanese luxury vehicles. Lutz apparently added that $50 worth of chrome translates into an additional $500 to $600 in perceived value to customers. Beyond the Malibu, Lutz noted that there are "a bunch" of other vehicles being pulled forward to pre-bankruptcy production cadences, though he didn't offer any specific examples.

[Source: Automotive News - Sub. Req.]

REPORT: GM to speed up development of vehicles delayed by bankruptcy originally appeared on Autoblog on Fri, 18 Dec 2009 18:31:00 EST. Please see our terms for use of feeds.

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Autoline on Autoblog with John McElroy

John McElroy — Fri, 18 Dec 2009 18:00:00 EST

Filed under: GM, Autoline on Autoblog

GM COULD REPAY EVERY SINGLE PENNY

Even though General Motors surprised everyone when it announced it will repay its government loans by next June, a lot of people are still unhappy. What about the other $50 billion we poured into the company, they demand to know?

A lot of politicians and not a few Wall Street analysts say we may as well kiss that money goodbye. We'll never see it again, they promise.

But it's entirely possible, and even likely, that they are very much mistaken. Taxpayers are likely to get a lot of that money back. Indeed, the federal government could come out looking pretty good in this deal, just like it did when it bailed out Chrysler in the early 80s.

____________________________________________________________________________________

John McElroy is host of the TV program "Autoline Detroit" and daily web video "Autoline Daily". Every week he brings his unique insights as an auto industry insider to Autoblog readers.
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Continue reading Autoline on Autoblog with John McElroy

Autoline on Autoblog with John McElroy originally appeared on Autoblog on Fri, 18 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.

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GM begins repayment to U.S. and Canadian governments

Chris Shunk — Fri, 18 Dec 2009 17:30:00 EST

Filed under: Government/Legal, GM

Good news, the check is in the mail! General Motors issued a (very) brief press release this afternoon stating that the automaker had delivered on its promise to issue its first reimbursement checks to the U.S. and Canadian governments by the end of the year. GM sent $1 billion to the feds and $192 million to the Canadian government, and GM reiterated in the statement that it would complete payments totaling $6.7 billion (to the U.S. government) by June 2010.

Beyond the $6.7 billion GM owes the federal government is a 60 percent ownership stake Uncle Sam has on the 101-year-old automaker. When the General releases an initial public offering the resulting stock sale will (supposedly) buy the government out. Experts feel the IPO could happen as early as the second half of 2010. Hit the jump to read over the General's succinct press release.

[Source: GM | Image: Bill Pugliano/Getty]

Continue reading GM begins repayment to U.S. and Canadian governments

GM begins repayment to U.S. and Canadian governments originally appeared on Autoblog on Fri, 18 Dec 2009 17:30:00 EST. Please see our terms for use of feeds.

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Christmas List 2010: Rattner's book to debut in time for next Christmas

Dan Roth — Fri, 18 Dec 2009 10:03:00 EST

Filed under: Etc., Government/Legal, Chrysler, GM, Earnings/Financials

Planning for the future is perhaps an alien concept to big business - even automakers, with their protracted product development cycles. Take a cue of what not to do from them, then, and start planning now for next Christmas. May we suggest that your 2010 wishlist starts with what's destined to be a hotly-anticipated tome: Steven Rattner's memoir of his spearheading the bailout of General Motors and Chrysler. Tentatively titled "Overhaul," the cloyingly-named book will tell the story of the quick-rinse bankruptcies Rattner presided over.

A fascinating piece that Rattner wrote for Fortune Magazine back in October gave us a glimpse of how riveting such a seemingly-dry subject can be. The book is on track for a debut in the fall of 2010, and might be even more interesting in a year depending on how Rattner's deals work out. The hardest part is going to be behaving well enough for an entire year so this thing gets stuffed in our stocking.

[Source: The Detroit News | Image: Neilson Barnard/Getty]

Christmas List 2010: Rattner's book to debut in time for next Christmas originally appeared on Autoblog on Fri, 18 Dec 2009 10:03:00 EST. Please see our terms for use of feeds.

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BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand

Chris Paukert — Fri, 18 Dec 2009 09:36:00 EST

Filed under: GM, Saab, Earnings/Financials

2010 Saab 9-5 - Click above for high-res image gallery

After a protracted saga that has seen bidders drop in-and-out and old model tooling and assets sold off to the Chinese, the enigmatic brand known as Saab is dead. In a press release issued this morning, General Motors announced that the "intended sale of Saab Automobile AB would not be concluded." GM had been in talks with Dutch exoticmakers Spyker Cars after pursuing a number of other buyer leads (including the aborted sale with Koenigsegg), but The General says that in the course of due diligence, the resolution of certain unspecified issues became impossible in the time frame that they had set for themselves.

As such, GM will immediately begin the "wind down" of the much-loved yet perpetually unprofitable cult brand, but says it will continue to honor warranties and provide spare parts and service - presumably through other GM brand dealers - as Saab dealers go offline. Officials note that this is not a bankruptcy or forced liquidation situation, so outstanding creditors should still expect to receive payment.

It is not clear what will happen to the production-ready 2010 9-5, nor the current 9-3/9-3X model and almost-ready 9-4X. Official death certificate available after the jump, historical slide show of the brand in photographs viewable below.

Gallery: Saab – A History in Pictures

Gallery: 2010 Saab 9-5

[Source: General Motors]

Continue reading BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand

BREAKING: Swedish Patient Succumbs - Deal for Saab is dead on the table, GM to wind down brand originally appeared on Autoblog on Fri, 18 Dec 2009 09:36:00 EST. Please see our terms for use of feeds.

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REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen

Jonathon Ramsey — Fri, 18 Dec 2009 08:30:00 EST

Filed under: Hirings/Firings/Layoffs, GM, Earnings/Financials

There are roughly 4,000 GM employees working at the company's Renaissance Center headquarters in Detroit. During the restructuring, GM has been working out how many employees to let go and where to put the remainder, and that, for the state of Michigan, meant another few thousand workers unemployed.

To lessen the damage, the Michigan Economic Growth Authority (MEGA) has been in talks with GM to limit the number of retrenched employees. The General had committed to maintaining a workforce of 2,500 at the RenCen in exchange for a $50 million tax break over twenty years, but the number was recently reduced to 2,000. GM simply needs to do all it can to get itself back in contention.

The company will still receive the tax break and talks are continuing, yet while there aren't many details it's an intriguing deal to strike. This could be cynical of us, but GM has white-collar workers in numerous locations in Michigan, and we wonder if the company wouldn't simply shuffle people around to keep the required number at the RenCen but get rid of all the employees it feels it needs to. And when the company gets its new CEO, well, as we've seen before, he or she might plot a very different course than the one being charted now.

[Source: Detroit News | Image: Bill Pugliano/Getty]

REPORT: Michigan gives GM tax break but automaker to still halve staff at RenCen originally appeared on Autoblog on Fri, 18 Dec 2009 08:30:00 EST. Please see our terms for use of feeds.

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Sweeney takes over Buick/GMC general manager duties

Chris Shunk — Fri, 18 Dec 2009 07:59:00 EST

Filed under: Marketing/Advertising, Buick, GM, GMC

For the third time in two months, General Motors has a new Buick/GMC general manager, this time hiring longtime employee Brian Sweeney to the high-profile post. Sweeney gets the job one week after Michael RIchards quit after just nine days on the job.

Sweeney gets the general manager post after spending a year and a half as general sales manager of Buick GMC. GM Sales Service and Marketing VP Susan Docherty said in a press release that Sweeney "consolidated 13 different agencies to one dedicated partner to drive a consistent brand message, led the dealer network through a difficult transition and has earned a reputation for tirelessly driving results that benefit consumers." That sounds like a lot of work to us. Here's to hoping this Sweeney guy lasts a lot longer than the last guy.

Sweeney's old job goes to 25 year GM vet Jennifer Costabile. The 25 year GM employee is coming off assignment as regional sales and marketing manager for Cadillac in GM's Southeast Region. Hit the jump to read the GM press release.

[Source: GM]

Continue reading Sweeney takes over Buick/GMC general manager duties

Sweeney takes over Buick/GMC general manager duties originally appeared on Autoblog on Fri, 18 Dec 2009 07:59:00 EST. Please see our terms for use of feeds.

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Bowling for Michigan: Laid-off GM worker wins PBA championship

Chris Shunk — Wed, 16 Dec 2009 08:30:00 EST

Filed under: Etc., GM

How cool is this? On minute Tom Smallwood is reeling after losing a (once) steady production job at General Motors' Truck Plant in Pontiac, MI, and the next minute he takes the PBA championship. In a real-life event that mimics some of the great tales in the history of underdog turned champion, Smallwood took third in a PBA qualifier event, making him eligible for one year on the prestigious bowling tour.

That alone barely makes the story interesting, but the tale becomes far more compelling due to the fact that Smallwood rolled into Wichita, Kansas an also-ran and left holding the first place trophy and a $50,000 grand prize. Smallwood, a 15-year recreational bowler, even had to beat out PBA bowler of the year Wes "Big Nasty" Malott in the final round. The former GM line worker performed superbly under pressure by hitting two strikes in the decisive tenth frame to take the match 244-228. After Smallwood's big win he was called by GM to take another plant job but the suddenly high-flying bowler turned down the offer in order to stick with his new profession.

We're thinking Smallwood's meteoric rise to the top of the bowling world will net him quite a bit more than his $50,000 top prize. Advertisers love a rags-to riches-story and Smallwood may be selling resin and those wrist things bowlers wear before you're even finished reading this post. Congratulations Tom!

[Source: Kicking Tires]

Bowling for Michigan: Laid-off GM worker wins PBA championship originally appeared on Autoblog on Wed, 16 Dec 2009 08:30:00 EST. Please see our terms for use of feeds.

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REPORT: GM-SAIC pondering Tata Nano fighter?

Jeremy Korzeniewski — Tue, 15 Dec 2009 17:32:00 EST

Filed under: Budget, China, GM, India, Rumormill

Though the minuscule Tata Nano hasn't even been on the market for a complete year, the impact it's had on the automotive world may be exactly inverse to its size and price. In other words, it's had a huge effect, proving to the world that it's possible to build a business plan around selling super cheap cars in rapidly expanding markets.

You can reportedly add the Shanghai Automotive Industry Corporation (SAIC) and General Motors joint venture to the list of automakers that have taken notice of the Nano. According to reports rolling in from China and India, the 50:50 JV is considering a vehicle that would be positioned below the Chevy Spark/Daewoo Matiz that would sell for as little as $3,500.

So far, GM/SAIC isn't commenting on the reports, but has indicated in the past that it plans to build small vans, SUVs and cars for emerging markets like China and India.

[Source: WheelsUnplugged | Image: Mark Ralston/AFP/Getty Images]

REPORT: GM-SAIC pondering Tata Nano fighter? originally appeared on Autoblog on Tue, 15 Dec 2009 17:32:00 EST. Please see our terms for use of feeds.

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REPORT: No alternatives left - Whitacre says it's Spyker or the Grim Reaper for Saab

Chris Shunk — Tue, 15 Dec 2009 16:29:00 EST

Filed under: GM, Saab, Spyker

2010 Saab 9-5 - Click above for high-res image gallery

It's now or never. By the end of December General Motors will either divest itself of Saab by selling the Swedish automaker or by permanently closing its doors. And there is but one company bidding for the Swedish automaker -- Spyker -- which has yet to turn a profit. GM Chairman and interim CEO Ed Whitacre told a group of reporters at the company's Detroit headquarters that Spyker is the only automaker left bidding for the perennially struggling automaker. Whitacre reportedly told attendees that striking a deal was "possible," but he then reiterated that Saab would close if the deal isn't struck by the end of the year.

At the same time, the General is also reportedly selling off bits to the outgoing Saab 9-5 and the pre-2006 9-3 to Chinese automaker BAIC. Tooling for the vehicles is likely never to be used by GM or Spyker in the future so the move makes plenty of financial sense.

While the potential demise of Saab saddens us, especially when considering how close the Swedish automaker is to launching the new 9-5 and perhaps the 9-4, it's nice to see that the General is finally moving quickly and decisively to right its ship. Hat tip to MowtownMan!

Gallery: 2010 Saab 9-5

[Source: Reuters]

REPORT: No alternatives left - Whitacre says it's Spyker or the Grim Reaper for Saab originally appeared on Autoblog on Tue, 15 Dec 2009 16:29:00 EST. Please see our terms for use of feeds.

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VIDEO: GM commissions Chevrolet Volt dance to go with song. Yes, really.

Jeremy Korzeniewski — Mon, 14 Dec 2009 14:57:00 EST

Filed under: LA Auto Show, Hybrid, Marketing/Advertising, Videos, Chevrolet, GM, Humor, Electric

Chevrolet Volt Dance - Click above to watch the video after the break

"E for electricity, V for Chevy Volt and me..." Catchy little diddly, sure. But we were mostly willing to let the Chevrolet Volt song make the deep, dark trek into obscurity with nary another mention. That is, until today. What made us change our tune, you ask? Boy, are you in for a treat.

Witness the Chevy Volt dance. Yes, it is an official routine apparently commissioned by GM. Showgoers that meandered near the GM area at the LA Auto Show may already be familiar with this little number, but the video's just too good not to share with the rest of the class. We especially like it when the four-person crew stops whatever they're doing to throw us an "E" and a "V."

Trust us. You owe it to yourself to click past the break and watch the video. Here's hoping The General antes up to send these dancers around the country for the rest of the auto show circuit.

[Source: GM-Volt.com]

Continue reading VIDEO: GM commissions Chevrolet Volt dance to go with song. Yes, really.

VIDEO: GM commissions Chevrolet Volt dance to go with song. Yes, really. originally appeared on Autoblog on Mon, 14 Dec 2009 14:57:00 EST. Please see our terms for use of feeds.

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REPORT: Despite selling off old bits to BAIC, Saab brand still in search of buyer

Jonny Lieberman — Mon, 14 Dec 2009 09:28:00 EST

Filed under: China, Europe, Plants/Manufacturing, GM, Saab

2010 Saab 9-5 - click above for high-res image gallery

Here's a little bit more on the salvation/debacle of Saab. First of all, it should be pointed out that after our last report about Holland's Spyker trying to buy Saab, the ~~freaks~~ lovely people over at Saabs United pointed out some ~~gaping holes in our reporting~~ an inconsistency or two with the Reuters/our version of the facts. As such, we've gone ahead and vetted the information we're using for this post with the brain trust over at Saabs United. Hey, they really like Saabs, what can we say? And now, on to the story.

Automotive News is reporting that China's Beijing Automotive Industry Holding Company (BAIC) has reached a deal with General Motors to acquire the tooling for both the Saab 9-3 and 9-5. Not so fast, says Saab's United! What they actually acquired is the tooling for the old 9-5, as well as the stuff for the pre-2006 9-3. Sort of a big difference, as obviously Saab's just getting geared up to roll out the all new 9-5 - and whomever winds up buying Saab will most likely want to offer both it and the existing 9-3 and its derivatives. Spyker's CEO Victor Muller confirms the BAIC deal is for "old equipment" and goes on to characterize the BAIC deal as, "Good news."

Then there's a bunch of no commenting. Obviously, General Motors has no comment on anything, though they do say that once a deal is reached they will say something. As far as we can tell, the pending Spyker deal is still a definite maybe. BAIC could not be reached to make a "no comment," and Saab's Eric Geer's stated, "We can't comment on anything about the sales process." Though our Saabs United source does provide us with a juicy tidbit, "[Geer's] wife is Saab's head legal counsel so he's like the canary in the coal mine. If he ever resigns suddenly..."

So there you have it - Saab's future is still totally up in the air. Though our source says that in addition to the 9-5 sedan, there's a 9-5 wagon (SportCombi) that's "pretty much ready to go" as well as the 9-4x which has, "been ready for about a year but Caddy had to get the SRX out first." Plus, a new 9-3 is being worked on. And one more thing - Saabs United is reporting that a Swedish group (not Renco) is also in talks with GM, in addition to the Spyker deal. We'll keep you posted.

Gallery: Frankfurt 2009: 2010 Saab 9-5

[Source: Automotive News - subs req. | Saabs United]

REPORT: Despite selling off old bits to BAIC, Saab brand still in search of buyer originally appeared on Autoblog on Mon, 14 Dec 2009 09:28:00 EST. Please see our terms for use of feeds.

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Fed may reconsider $500k salary cap for new GM CEO, limit pay for 2nd tier execs

Jonathon Ramsey — Mon, 14 Dec 2009 08:27:00 EST

Filed under: GM, Earnings/Financials

It's official: pay czar Kenneth Feinberg's executive compensation rules for companies yet to return their bailout funds means a cap of $500K for second-tier executives. Importantly, that number represents the total compensation allowed, but only 45 percent of it -- $225,000, can be in cold, hard ducats. Stock remuneration must be held or paid out over at least two years, and extracurricular perks like country club memberships and private jet escapades can be valued at no more than $25,000.

Regarding General Motors, to lure the kind of executive the company seeks it will probably need a bit more flexibility with pay than the rules previously enforced on it by the pay committee. Feinberg said he will look at GM's compensation proposal when a suitor is located. It would be nigh on impossible to lure that candidate with the come-on, "Fix everything, here's a million bucks now, you'll get some Scooby Snacks in 2013, let us know when you're done, kthxbai."

Feinberg appeared to refine his pay re-examination statement, though, citing a case where GM brings someone in "laterally," not simply chooses from among the ranks. Like him, we all know that "It is vitally important that GM, under the law, be competitive and be able to compete in the automobile marketplace," especially if we want to get any more of that $30 billion back.

[Source: Automotive News - sub. req. | Image: Win McNamee/Getty]

Fed may reconsider $500k salary cap for new GM CEO, limit pay for 2nd tier execs originally appeared on Autoblog on Mon, 14 Dec 2009 08:27:00 EST. Please see our terms for use of feeds.

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Mulally and Whitacre gab on phone, what was said?

John Neff — Fri, 11 Dec 2009 14:29:00 EST

Filed under: Ford, GM, Humor

Word has it that Ford CEO Alan Mulally and the new interim CEO of General Motors, Ed Whitacre, had a phone conversation this week. This type of across-the-aisle conversation is not unusual, as Mulally himself placed a call to each of his competitors when he arrived in D-town from Boeing three years ago.

We weren't on the call ourselves and neither CEO has divulged any details of their conversation, so we're left to just guess at what was said. Considering Mulally's success at Ford so far and the quagmire into which Whitacre is stepping at GM, we think it may have went something like this.

Whitacre: Hi Alan, nice to finally talk. I feel like you and I have something in common, being that we both come from companies outside the auto industry.

Mulally: I'm a busy guy, do we have to do this every time General Motors fires a CEO?

Whitacre: I'm very excited about taking GM forward into a bright future.

Mullally: The only thing bright around here is the glare off our Motor Trend Car of the Year award. You might want to draw a shade. Fusion FTW!

Whitacre: Congratulations on that. We're hoping to have a good showing for SUV of the Year.

Mulally: Good luck, I'm sure the Chevy Terrain SRX will do great. Lincoln MKT FTW!

Whitacre: Anyway, congrats on all your success at Ford and I look forward to working together on our shared interests.

Mulally: Just have the next CEO send me an email. The address is KingofKansaz321@ford.com.

[Source: Automotive News - Sub. Req. | Source Image: Bill Pugliano, Getty]

Mulally and Whitacre gab on phone, what was said? originally appeared on Autoblog on Fri, 11 Dec 2009 14:29:00 EST. Please see our terms for use of feeds.

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Buick-GMC general manager Michael Richards leaves after just nine days on the job

Jonny Lieberman — Thu, 10 Dec 2009 16:20:00 EST

Filed under: Hirings/Firings/Layoffs, Buick, GM, GMC

Nine days ago, we posted about Michael Richards getting Susan Docherty's old post at General Motors, brand manager for Buick-GMC. Today, he walked away. According to The Detroit News, the official (yet still unofficial) reason is that Richards' previous employer - Trinity Automotive in Austin, TX - made him a very strong counter offer. Though it seems to us that Trinity would have made the counter offer before Richards packed up and moved north, and we've also heard rumblings from Detroit insiders that there's more to this story than meets the eye.

Whatever the actual reason for Richards' abrupt departure, Buick-GMC is currently without a leader. Chevrolet is in a bit of a better position, even though just yesterday its vice president and 31-year company vet Brent Dewar suddenly retired. Dewar was appointed to his position in July by ex-CEO Fritz Henderson, who just resigned/was outsted from GM... nine days ago. Dewar was immediately replaced by Jim Campbell, Chevy's Fleet and Commercial Operations manager.

It seems mostly obvious to us, that both Richards and Dewar's sudden departures have to do with Henderson leaving. Because honestly, it sure as hell ain't the weather outside the Renaissance Center. As for Richards specifically, it must have been odd and unsettling to start a new career on the very same day that the guy that hired you exits stage left.

[Source: The Detroit News]

Buick-GMC general manager Michael Richards leaves after just nine days on the job originally appeared on Autoblog on Thu, 10 Dec 2009 16:20:00 EST. Please see our terms for use of feeds.

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REPORT: Fed predicts it will lose $30B on auto industry bailout

Chris Shunk — Thu, 10 Dec 2009 13:27:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

2009 isn't quite over yet, but we're pretty sure most automakers would rather forget that it ever happened. And while General Motors and Chrysler suffered the pain and humiliation of bankruptcy and workers lost thousands of jobs and many plants and dealerships closed, the good news is that the General and the Pentastar are now more fiscally healthy than they've been in ages. The bad news is that it cost U.S. taxpayers an estimated $82 billion to save what has been called hundreds of thousands of jobs.

The Detroit News is reporting that after wading through the wreckage of the auto bailout, the Obama Administration only expects to get back an estimated $52 billion of its original investment. That's horrible news, right? Not so, says Gene Sperling, the senior counsel to Treasury Secretary Timothy Geithner. He said the $30 billion estimate is better than the $44 billion the government thought it would lose a few months ago. And with the perceived stabilization of the auto industry, Sperling feels the numbers could improve.

The DetNews reports that President Obama stressed during a speech on the economy that while the bailout of the auto industry wasn't politically popular, it was absolutely necessary to save "hundreds of thousands of jobs." The president then added "these were not decisions that were popular or satisfying; these were decisions that were necessary."

There are signs that at least GM will start paying the government back $6.7 billion as early as the end of the year. Chairman and interim CEO Ed Whitacre has reportedly intimated that the company could pay the money back in one lump sum. And once the auto industry is in a little better shape, the government could recoup much more cash when the General goes public. For the moment, though, Uncle Sam (e.g. the U.S. taxpayers) still owns 61 percent of the new GM.

[Source: The Detroit News | Image: Saul Loeb/AFP/Getty]

REPORT: Fed predicts it will lose $30B on auto industry bailout originally appeared on Autoblog on Thu, 10 Dec 2009 13:27:00 EST. Please see our terms for use of feeds.

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REPORT: GM, Ford to dramatically increase Q1 production versus year ago numbers

Chris Shunk — Wed, 09 Dec 2009 10:29:00 EST

Filed under: Plants/Manufacturing, Chrysler, Ford, GM

The first quarter of 2009 could best be described as the worst of times in the auto industry. With the full weight of the global financial collapse weighing down on the industry, sales dropped like a stone and production screeched to a halt. General Motors and Ford produced only 371,000 and 349,000 vehicles respectively during Q1 2009, a mere fraction of the industry giants' overall capacity. One year later, the auto industry here in the U.S. is still far from healthy, but many industry experts feel the market has stabilized.

Evidence of that fact presents itself when looking at production data for the fourth quarter of 2009 versus the first quarter of 2010. Automotive News is reporting that Ford plans to build 550,000 cars and trucks in the first quarter while GM plans 650,000 units. While that's a bump of 58 percent and 75 percent versus Q1 2009, respectively, the numbers are within a few thousand units of Q4 production. But even compared to Q4, production is up around four percent for both Ford and GM - a hopeful sign for the industry.

But while GM and Ford appear to have good production news, AN is reporting that the forecast is a bit cloudier for Chrysler. The Pentastar's recent announcement that it would prolong shutdown over the holidays throws some doubt on the Auburn Hills, MI-based automaker's reported plan to increase Q1 2010 production by 56% versus Q1 2009. While Chrysler was supposed to up production to 376,000 units, the shutdown could drop production by up to 30,000 units.

[Source: Automotive News - subs req'd | Image: Scott Olson/Getty]

REPORT: GM, Ford to dramatically increase Q1 production versus year ago numbers originally appeared on Autoblog on Wed, 09 Dec 2009 10:29:00 EST. Please see our terms for use of feeds.

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REPORT: Spencer Stuart tasked with finding new GM CEO

Jonathon Ramsey — Tue, 08 Dec 2009 16:20:00 EST

Filed under: Hirings/Firings/Layoffs, GM

Headhunting firm Spencer Stuart is without doubt on the speed-dial lists of bailed-out firms, having placed chairmen, CEOs, Chrysler Group LLC, and board members for AIG, Citigroup Inc., Freddie Mac, Fannie Mae, and GMAC. Then they flew over General Motors so that Ed Whitacre, Jr. could heli-drop in. Now, The Wall Street Journal is reporting that GM has chosen Spencer Stuart to assist it in locating a permanent CEO to take up the position from Whitacre.

GM's list of requirements makes it clear they're looking for someone bionic, having "extensive global, manufacturing and turnaround experience." The new person should also have solid credentials working with Asia, since GM believes it will move more metal over there than in the U.S. next year, and the prospective bigwig doesn't need to come from within the auto industry'sranks.

No national preference has been put forth for the new CEO, only that he or she be "global minded." Perhaps the most important proven attribute they can bring: the ability to restore morale. It's an impressive list, but that's frankly the kind of CEO we would expect GM to require anyway, regardless of its economic and market position. And it does kind of make us wonder if Alan Mulally could simultaneously run two carmakers...

[Source: The Wall Street Journal]

REPORT: Spencer Stuart tasked with finding new GM CEO originally appeared on Autoblog on Tue, 08 Dec 2009 16:20:00 EST. Please see our terms for use of feeds.

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Jaguar, Mercury tops in J.D. Power 2009 Sales Satisfaction study

Chris Shunk — Tue, 08 Dec 2009 15:40:00 EST

Filed under: Audi, Chrysler, Ford, GM, Lexus, Toyota

J.D. Power has released its 2009 Sales Satisfaction Index, and 29 of 38 brands improved their standing versus last year's numbers. The industry watchdogs at Power say that sales people improved the most over 2008, which isn't surprising given the fact that fewer vehicles are flying off dealer lots and every customer is a precious commodity. Even with the improved standing versus 2008, J.D. Power says that brands still lost 12% of sales on average due to poor service at the dealer level, a statistic that could have automakers cringing.

Jaguar took top luxury honors for the second straight year with an 898 index score, beating second place Cadillac by a scant five points. J.D. Power says Jaguar excels in both salesperson interactions and the handling of the dreaded financing/paperwork. The top five rounds out with Lexus, Mercedes Benz and Land Rover. Audi performed most poorly of any brand studied, while Infiniti and Volvo also fared poorly.

Mercury was the top non-luxury make with a score of 867, followed by Smart, Buick, Pontiac and Chevrolet. Mercury reportedly scored well on all five categories tested, though we're a bit puzzled how Mercury could beat Lincoln by four points in spite of the fact that the two makes usually share a common dealership. Japanese and Korean brand-dealers scored poorly in the survey as Honda, Toyota, Nissan, Kia and Mazda all scored below the industry average of 832.

General Motors and Ford dealers fared very well in the survey, with all of their brands except Lincoln coming in over the industry average. Chrysler brands, however, did not do as well, with all three makes falling under the industry Mendoza line. Mitsubishi was by far the worst dealership to deal with, with an industry-low 778 index score. Hit the jump to read over the J.D. Power press release and click on the gallery below to view the survey scores for both luxury and mass market offerings.

Gallery: JD Power 2009 Sales Satisfaction Study

[Source: J.D. Power]

Continue reading Jaguar, Mercury tops in J.D. Power 2009 Sales Satisfaction study

Jaguar, Mercury tops in J.D. Power 2009 Sales Satisfaction study originally appeared on Autoblog on Tue, 08 Dec 2009 15:40:00 EST. Please see our terms for use of feeds.

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REPORT: BAIC only interested in parts of Saab, "White Knight" looking increasingly unlikely

Dan Roth — Tue, 08 Dec 2009 11:01:00 EST

Filed under: China, Etc., Europe, Plants/Manufacturing, GM, Saab

It seemed pretty obvious when we first heard that China's BAIC wanted Saab's tooling that it didn't want anything to do with purchasing the Swedish automaker's full monty. If BAIC wanted to be in the Saab business, clearly, it would have made overtures for more than just the retired tooling from the older versions of the 9-5 and 9-3. BAIC wants the cars and all the stuff that Saab made to make them, so as to have something else to sell in its home market. The rest of Saab, such as its Trollhattan headquarters and workforce apparently aren't of interest to BAIC, which just secured a line of credit from the Bank of China, presumably to finance this purchase.

General Motors is said to still have some suitors interested in the whole shooting match, instead of BAIC's cherry picking. Since the deal with Koenigsegg fell apart, Spyker has indicated interest in Saab, as has a private concern called Renco Group. Any deal will be carefully vetted by General Motors, and will have a short time-table for completion. If BAIC's bid for the parts of Saab carries through, the rest of the company will almost certainly head for liquidation. It's looking increasingly likely that there will be no stay of execution for Saab, no white knight riding in to save this Swedish automaker in distress. Still, it ain't over until it's over...

[Source: Reuters | Image: AFP/Getty]

REPORT: BAIC only interested in parts of Saab, "White Knight" looking increasingly unlikely originally appeared on Autoblog on Tue, 08 Dec 2009 11:01:00 EST. Please see our terms for use of feeds.

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