General Motors: Sales, Marketing, and Financial News

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Old 01-21-2011 | 02:39 PM
  #561  
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Originally Posted by biker
Are men really that whiped?
yes. Luckily mine doesn't care what car I buy.
Old 01-22-2011 | 03:47 PM
  #562  
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Good for her! I hope she can bring GM back.
Old 01-27-2011 | 05:07 PM
  #563  
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i'm afraid GM might start to look like the ZDX, TL, RL or even the old Aztec!
Old 01-30-2011 | 08:45 PM
  #564  
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That was uncalled for...
 
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In other news; This is the 2013 Malibu...



Kidding...kidding She'll do well if she was part of the Enclave/ Acadia launch. She knows what makes a vheicle succesful.
Old 03-27-2011 | 07:24 PM
  #565  
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Post CEO Comment


Last fall, the road ahead looked smooth for General Motors.

Just over a year since it sank into government-run bankruptcy, a leaner, meaner automaker relisted its shares on major world stock exchanges, bursting back onto the investment scene with the world’s largest initial public offering.

But just 4 months later some industry observers are expressing concern that the company's new driver, CEO Daniel Akerson, is unfamiliar with the car market terrain and could steer GM into a ditch.

Critics contend Akerson, a former telecommunications executive, is surrounding himself with agreeable subordinates from similar backgrounds, focusing too much on cost-cutting and relying heavily on incentives, such as rebates, to artificially inflate sales at the expense of profits and brand image.

Adding to the concern: The sudden departure this month of GM’s finance chief Chris Liddell after barely a year on the job. Liddell shepherded GM through its record $23 billion IPO last November, and his departure renewed concerns about GM’s stability and performance that many analysts had credited the automaker with having put behind it in recent months. The company has had 4 chief executives in the past 2 years.

“I’ve seen this movie before, and it doesn’t end well,”
longtime Detroit adman Peter Delorenzo said his blog, autoextremist.com.

Things have certainly looked upbeat for GM of late.

In the opening months of 2011 sales of GM’s cars and trucks have surged, as the company grabbed market share from its rivals, according to sales data from J.D. Power and Associates. That would appear to bode well for the company’s future, and with it, the potential for U.S. taxpayers to recover the remainder of their investment in the company.

But some have questioned how those sales were made, and competitors have complained over GM’s tactics. They say the use of sales incentives such as rebates to grab market share is a shortsighted tactic whose use is worrisome coming from a company now led by an industry outsider.

GM has added hefty incentives to its cars since the start of the year, offering big rebates to current owners of GM cars, no-penalty early trade-ins for currently leased GM cars and bigger rebates for users of the GM credit card. The result has been a U.S. market share of more than 21%, higher than the company has had in years.

“We don’t see any upside to incentives,” said Eric Lyman, director of residual value solutions at Automotive Lease Guide, the industry authority on residual values. “It is manipulating the market and lowering the cost of your vehicles, which lowers the resale value of your used vehicle in the market,” he said.

That is the primary concern noted by George Pipas, spokesman on sales analysis for Ford Motor Co. “the focus becomes on the deal rather than the product,” he said “It clearly does have an adverse impact on resale value.”

GM declined to respond directly, but supplied text of a March 1 conference call with analysts by Don Johnson, vice president of sales operations. “Price or incentives alone do not fully explain a 70% retain increase and a gain of almost three full share points,” he insisted.

But the word in the industry is that sales slumped in March once the incentives expired. “The metaphor that has been used is like drug addition,” said Pipas. “If you depend on it to move sheetmetal it is not so good. Then your customers depend on it.”

Some industry veterans worry that Akerson’s unfamiliarity with carmaking -- he had a long career as an executive with Nextel and MCI -- is leading GM to repeat mistakes it made when it was headed from 1992 to 1995 by Chairman John Smale, previously president and CEO of consumer products company Procter & Gamble.

Smale's hand-picked North America president Ron Zarella championed the launch of the Pontiac Aztek, a dismal-selling SUV whose laughable styling brought it to a quick end.

Akerson similarly has appointed outsiders to some top jobs including the recent announcement that Dan Ammann will take over as chief financial officer April 1. Ammann came to GM from Morgan Stanley’s investment banking group. Akerson also has installed former Sprint Nextel executive Linda Marshall to head GM’s OnStar division.

As GM’s CEO, Smale put forward the belief that GM’s cars could be packaged and sold just like P&G’s consumer goods, with the differences largely in the packaging and marketing. The result was a product line of nondescript cars -- the Aztek notwithstanding -- drained of both cost and customer appeal.

In an echo of that past, Akerson recently told the Wall Street Journal that a GM car was just like the can of Diet Coke he was drinking during the interview.

“It’s a consumer product,” he said. “GM has to start acting like a consumer-driven, not engineering-driven, company. We sell a consumer product -- our can just costs $30,000.”

Industry insiders with a memory of the 1990s immediately blasted this view as a return to Smale’s failed strategy to commoditize a product for which a strong emotional connection is important to drive sales and to cultivate brand loyalty.

“The only difference between GM then and GM now is that this is a company that has only recently emerged from the abyss of bankruptcy, one that can ill-afford a single misstep brought upon by misguided leadership, even though it has the most competitive lineup (of vehicles) it has had in decades,” Delorenzo said.

At the time of his departure from the company last year, former vice chairman of product development boss Bob Lutz recalled the mess he found upon joining GM in 2001:

“Product development was all folded in organizationally with brand management,”
he said. “This was done by John Smale, who believed that you could use the principles of the consumer products business in the automobile business, which has been tried before and it simply does not work.”

An emphasis on cost and speed of product development rather than on product quality and customer satisfaction resulted in cars no one wanted, Lutz said.

Under Lutz, GM won numerous car awards such as the North American Car of the Year for the Saturn Aura, Chevrolet Malibu and Chevrolet Volt, while cars like the Cadillac CTS, Chevrolet Corvette and Buick LaCrosse have won plaudits from magazine reviewers.

Additionally, transaction prices -- the actual sale price of GM’s cars and trucks -- climbed by $4,000 as the result of an additional $1,000 of manufacturing cost, said Lutz, making customers happier and the company more profitable.

Now Akerson says speed and cost are the aspects on which he will concentrate, telling the Journal that “during World War II, GM produced tanks and equipment within 4 years. Why should it take 4 years to put a car out?”
Old 03-28-2011 | 02:33 PM
  #566  
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The wrong man for the job Find someone that knows something about the automobile industry
Old 03-28-2011 | 04:14 PM
  #567  
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Holy shit this guy sounds like a complete idiot. The incentives is what got GM bankrupt in the first place.
Old 03-28-2011 | 06:45 PM
  #568  
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Who put him in his position there?
Old 03-28-2011 | 09:08 PM
  #569  
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Old 03-28-2011 | 10:29 PM
  #570  
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Great GM is back at its old antics...
Old 03-29-2011 | 01:17 PM
  #571  
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Originally Posted by Hapa DC5
Great GM is back at its old antics...
I wouldnt say GM is, id say the schmuck that is running the show that doesnt know what he is doing is.
Old 08-10-2011 | 07:19 AM
  #572  
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http://content.usatoday.com/communit...s-engines-by/1

General Motors says it will halve the number of vehicle "architectures" -- platforms that underpin its vehicles -- and engines by 2018. It used 30 platforms worldwide in 2010 and plans to cut that to about 14. It will take the about 20 engines it used in 2009 down to about 10.

GM, in a presentation to analysts and big investors today, said that will help it boost profits with more efficient product development. It also said it hopes to cut waste that ranges from misusing too many engineers' time to blowing about $1 billion a year on projects that later are canceled.

The goal is to boost GM's operational profit margins from middle-of-the-pack to best-in-industry, CFO Dan Ammann said. He cited Morgan Stanley forecasts that GM will make 5% on its operations this year, while leaders such as Hyundai and BMW will make 10%.

"All of the things we need to do are, by and large, in our control," Ammann told analysts at GM's second annual global business conference. "We're not relying on heroic market share gains. We're not relying on substantial economic recovery. … We think just on canceled product programs, we've probably blown a billion dollars a year, just by pulling back on things that have already been started."

GM can start eliminating those mistakes by keeping product-development spending constant despite economic troubles, global product chief Mary Barra said.

A simplified product-development process and fewer platforms also will improve speed-to-market and quality, Barra said. Such platform simplification, basing several models on one platform as well as selling some of the same basic models around the world was pioneered by Japanese makers such as Toyota and now is being practiced by all major automakers.

For example, the Chevy Cruze, above now is sold worldwide, with local variations, such as the hatchback above (due in some markets this year) and diesel engines where they sell well. While there are no plans to sell the hatch in the U.S., GM recently confirmed a diesel is coming here. More examples: The new, larger Cadillac, while different in execution, will share a platform with the Buick LaCrosse. And the Chevy Malibu is on a platform developed and used by Opel in Europe.

Done well, creative use of platforms can offer consumers a real variety of models while cutting the cost of developing them. Done not so well, it can lead to a bland sameness and even "badge engineering" of multiple models with only cosmetic variation.

GM also believes it can cut by 25% the number of engineers it has working on non-vehicle projects and reassign them to more essential work, Barra said.
Everyone will be doing this - the cost of development of platforms and drivetrains is just too high not to whore them out to a bunch of models.
Old 09-07-2011 | 03:01 PM
  #573  
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GM rehires Lutz

http://www.msnbc.msn.com/id/44407671.../#.Tme-ROyKVBk
Old 03-15-2012 | 01:08 PM
  #574  
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Holden/G8 returning to GM line up (links)

Some exciting news on the GM side of things. All signs point to the return of the Holden Commodore/G8 platform. They will unveil the car after the new york auto show in early april.

looks like ill be getting back into an american (okay...australian) sedan assuming it is available with a manual trans. also assuming it would be priced significantly under CTS-V type figures, otherwise i'd rather scout out a CPO cts-v

http://www.gminsidenews.com/forums/f...acecar-109445/

http://blog.caranddriver.com/chevrol...and-nameplate/

http://www.leftlanenews.com/chevrolet-commodore.html

Last edited by Waltah; 03-15-2012 at 01:10 PM.
Old 03-15-2012 | 01:12 PM
  #575  
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nice!
Old 03-15-2012 | 02:24 PM
  #576  
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Cool, but the PPV doesn't look anywhere near as nice as the G8, so hopefully they put some time in on the exterior.
Old 03-15-2012 | 02:39 PM
  #577  
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I will believe it when it actually happens. This has been stated several times over the last few years and nothing has materialized.
Old 03-15-2012 | 02:50 PM
  #578  
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^ The Caprice police vehicle has and it would be very easy for Chevy to start selling a consumer version (actually, a few were sold to consumers before dealers were told they can only sell them to police agencies).
Old 03-15-2012 | 03:05 PM
  #579  
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I really do hope they bring back the G8/GTO. The G8 is my favorite GM sedan behind the CTS-V, both GM sedans that I wouldn't mind driving/owning.
Old 03-15-2012 | 04:10 PM
  #580  
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Originally Posted by CCColtsicehockey
I will believe it when it actually happens. This has been stated several times over the last few years and nothing has materialized.
there are no ifs/ands/buts about it. all signs point to a holden re-release in the US. the PPVs, the 2013 commodore refresh landing on the same date as this specualtion, GM president of NA is former President of Holden....what more do you want? haha
Old 03-15-2012 | 04:11 PM
  #581  
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kind of bummed this got merged though, as a thread on its own i think it would have flourished instead of getting buried in GMs typical boring news thread. no biggy though. I know there are a lot of people that appreciate the holdens/G8s on here.
Old 03-15-2012 | 09:57 PM
  #582  
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Holden's. High power V8's. Very nice.
Old 03-16-2012 | 07:30 AM
  #583  
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It's great that it will be re-released in the US. I only hope it looks as good as the Pontiac did.
Old 03-22-2012 | 10:38 PM
  #584  
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Originally Posted by Belzebutt
Holy shit this guy sounds like a complete idiot. The incentives is what got GM bankrupt in the first place.
GM almost went bankrupt when they had the idiot from Proctor & Gamble running the show in the 90s. They never learn.
Old 02-16-2013 | 01:28 AM
  #585  
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Exterior is a bit meh. It doesn't stand out. It's very plain and forgettable.




Press Release

2014 Chevrolet SS: Performance Sedan with Racing DNA

DAYTONA, Fla., Saturday, Feb. 16, 2013, 12:01 a.m. EST – As Chevrolet's first V-8, rear-wheel-drive performance sedan since 1996, the new Chevrolet SS is designed to deliver performance on the street and on the track. The 2014 Chevrolet SS will debut this weekend at the Daytona International Speedway as the SS racecar makes its NASCAR debut during the Daytona 500.

"The Chevrolet brand was largely built on the strength of rear-drive performance sedans, yet it's been 17 years since we've offered one," said Mark Reuss, president of General Motors North America. "The all-new Chevrolet SS fills that void and fills it better than any other vehicle in the brand's rich history. The comfort, convenience, spaciousness and V-8 power make the SS a total performance package unlike any other on the road today."

The Chevrolet SS benefits from the proven, race-tested, global rear-wheel drive architecture that is the foundation for the Camaro, Caprice Police Patrol Vehicle and Holden's VF Commodore.

The Chevrolet SS is powered by the LS3 Chevrolet V-8, expected to deliver 415 horsepower and 415 lb-ft of torque. Also used in the 2013 Chevrolet Corvette, the LS3 displaces 6.2 liters, more than the 5.5-liter V-8 powering the Chevrolet SS NASCAR competitors.

The LS3 is married to a six-speed automatic transmission, which can be shifted manually using TAPshift paddles mounted on the steering wheel. With an aggressive 3.27 final-drive ratio, the Chevrolet SS accelerates from 0 to 60 mph in about five seconds – making it one of the quickest sedans on the market.

To ensure that it turns and stops as well as it accelerates; the Chevrolet SS also features a sport-tuned chassis, including:
• MacPherson strut front and multilink independent rear suspension geometry
• Electronic power steering system, optimized for sport driving
• Standard Brembo brakes, with ventilated, 355-mm rotors and two-piece, four-piston front calipers
• Forged aluminum wheels, wrapped in ultra-high-performance Bridgestone tires: 19 x 8.5 inch wheels with 245/40ZR19 tires in front; 19 x 9.0 inch wheels with 275/35ZR19 tires rear
Handling is also improved by a near 50/50 weight distribution, and a low center of gravity – made possible in part by the aluminum hood and rear deck lid that are 30 percent lighter than traditional steel panels.

"Our goal was to create a car that delivers incredible grip and handling balance while cornering, while still being comfortable to drive on the road," said David Leone, executive chief engineer GM global programs. "The perfect weight balance and lower center of gravity were a big part of that goal because it enabled the team to tune for a more comfortable highway ride without sacrificing handling or driver confidence while cornering at the limits."

Similarly, the design of the SS blends performance cues and premium details.

"From every angle, the Chevrolet SS says power and performance," said John Cafaro design director Chevrolet passenger cars and small crossovers. "The combination of an aggressive rear-wheel drive stance and body-side attitude with the right balance of detail and refinement inside and out are the perfect home for Chevrolet's V-8 performance package."

The staggered front and rear wheels, which are pushed out to the corners, enhance the sporting, muscular stance of the SS. Up front, the aluminum hood features a subtle "power bulge" hinting at the power of the engine underneath. At the rear, the tapered, tear-drop shape contributes to improved aerodynamic performance. Premium cues include jewel-like chrome accents, standard high-intensity discharge headlamps and light-emitting diode daytime running lights.

The spacious interior of the SS will comfortably accommodate five adults, with 42 inches of front legroom, and 39 inches of rear legroom. Leather seating surfaces are standard, as are eight-way power adjustable front bucket seats with additional side bolstering that hug the driver and front passenger in tight-handling situations. The SS emblem is prominently stitched onto the soft-touch instrument panel which features two types of chrome finishes – a satin gloss and a bright chrome. At night, the interior is illuminated by ice blue ambient lighting.

An integrated center stack includes infotainment, climate and other vehicle controls. The Chevrolet SS also offers a long list of technology features as standard equipment including:
• Color, in-dashboard touch screen that supports Chevrolet MyLink and the next-generation navigation system
• Bose® Nine-speaker premium sound system
• Color heads-up display
• Push-button start
• StabiliTrak Electronic Stability Control
• Forward Collision Alert
• Lane Departure Warning
• Side Blind Zone Alert
• Rear-vision camera Rear Cross Traffic Alert
The SS is also the first Chevrolet to offer Automatic Parking Assist, which provides hands-free parking help. This efficient 'hands-free' parking assistant uses the ultrasonic sensing system to detect the width and depth of either parallel or reverse right-angle parking spaces. While the driver controls the throttle, transmission, and brake, the Automatic Parking Assist controls the steering inputs necessary to neatly park the Chevrolet SS.

The 2014 Chevrolet SS will be available in the fourth quarter of 2013, with prices set closer to the on-sale date. When it arrives in showrooms, the SS will join the Corvette and Camaro, whose combined sales have made Chevrolet America's favorite performance brand for the last two years.

2014 CHEVROLET SS PRELIMINARY SPECIFICATIONS

Overview
Model: Chevrolet SS
Body style / driveline: front-engine, rear-drive
Construction: unitized body structure and frame; two-sided galvanized steel (except roof)
EPA vehicle class: large
Manufacturing location: Elizabeth, Australia

Powertrain
Engine: 6.2L OHV V-8
Displacement (cu in / cc): 376 / 6162
Bore & stroke (in / mm): 4.06 x 3.62 / 103.25 x 92
Block material: cast aluminum w/ cast-in-place iron bore liners
Cylinder head material: aluminum
Valvetrain: overhead valve; two valves per cylinder; roller lifters
Ignition system: coil-near-plug ignition
Fuel: sequential fuel injection
Compression ratio: 10.7:1
Horsepower (hp/ kW @ rpm): 415 / 309 @ 5900
Torque (lb-ft / Nm @ rpm): 415 / 563 @ 4600
Fuel: premium recommended not required
Transmission: Hydra-Matic 6L80 6-speed automatic w/ TapShift

Chassis/Suspension
Front: multi-link MacPherson strut; direct-acting stabilizer bar; progressive-rate coil springs; fully adjustable camber, caster and toe
Rear: four-link independent; progressive-rate coil springs over shocks; stabilizer bar; fully adjustable camber and toe
Steering type: electric power

Brakes
Front
Type: ventilated disc
Rotor diameter x thickness (mm): 355 x 32
Caliper four-piston fixed
Rear
Type: ventilated disc
Rotor diameter x thickness (mm): 324 x 22
Caliper: single-piston sliding

Wheels/Tires
Wheel size and type: 19 x 8.5-inch forged, fully polished aluminum (front)
19 x 9-inch forged, fully polished aluminum (rear)
Tires: P245/40R19 (front)
P275/35R19 (rear)

Dimensions
Exterior
Wheelbase (in / mm): 114.8 / 2916
Overall length (in / mm): 195.5 / 5185
Overall width (in / mm): 74.7 / 1898
Overall height (in / mm): 57.9 / 1491
Track (in / mm): front: 62.6 / 1590
rear: 62.4 / 1612

Interior
front / rear
Seating capacity: 2 / 3
Legroom (in / mm): 42.3 / 1074 39.7 / 1008

















Old 02-16-2013 | 04:04 AM
  #586  
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feel like that interior deserves an in person look, but it looks over the top. If they toned it down a notch it would be nice. Same with the fog light area. Also, the name is shit tier.

Profile is very G8 though
Old 02-16-2013 | 04:55 AM
  #587  
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looks more boring that plain. i dunno if the engine would cover for that.
Old 02-16-2013 | 01:19 PM
  #588  
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I think the interior looks good. But the front of the car needs to be much more aggressive. Its too vanilla
Old 02-16-2013 | 03:50 PM
  #589  
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It's bland but on the other hand it may blend in better with traffic, which is a complaint with the oft-considered "loud" Camaro.

The biggest disappointment by far is no 6MT option. and I guess they couldn't decide what to name it, hence the stupid SS designation.
Old 02-16-2013 | 04:21 PM
  #590  
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I don't like the interior or exterior. Interior is too busy and the exterior is boring.
Old 02-16-2013 | 06:39 PM
  #591  
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It looks like they took a G8 and tried to make it look like a Malibu.

Disappointing for me as I feel excess is the thing domestics do best (trucks, muscle cars, CTS-V, 90's Impala, everything before the 70's)
Old 02-16-2013 | 07:59 PM
  #592  
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6.2L-V8. Gas station owners all love you.
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Old 02-16-2013 | 09:35 PM
  #593  
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It isn't terrible ... Inoffensive.
Old 02-17-2013 | 09:02 AM
  #594  
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Chevy Genesis R?
Old 02-17-2013 | 10:41 AM
  #595  
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Was expecting more.
Old 02-17-2013 | 11:24 AM
  #596  
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Interior is hot but exterior is so-so.
I thought the GXP had it perfect.

With the AUS>US $$ conversion I'm expecting the price to be the nail in the coffin. I'm taking a guess the price will be in the $50s loaded.
Old 02-17-2013 | 09:40 PM
  #597  
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Originally Posted by NSXNEXT
Interior is hot but exterior is so-so.
I thought the GXP had it perfect.

With the AUS>US $$ conversion I'm expecting the price to be the nail in the coffin. I'm taking a guess the price will be in the $50s loaded.
Built in Australia? Holy shit that's a bad idea.
Old 05-12-2014 | 10:41 AM
  #598  
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GM ranked worst auto maker by U.S. suppliers

I couldn't find a GM thread, if there is. Please add this there.

http://www.theglobeandmail.com/globe...ticle18606609/

General Motors Co, already locked in a public relations crisis because of a deadly ignition defect that has triggered the recall of 2.6 million vehicles, has a new perception problem on its hands.

The U.S. company is now considered the worst big automaker to deal with, according to a new survey of top suppliers to the car industry in the United States.

The annual survey, conducted by the automotive consultant group Planning Perspectives Inc, asks the industry’s biggest suppliers to rate their relationships with the six auto makers that account for more than 85 per cent of all light vehicle sales in the United States.

Those so-called “Tier 1” suppliers say GM is now their least favorite big customer, according to the rankings, less popular even than Chrysler, the unit of Fiat Chrysler Automobiles, which since 2008 had consistently earned that dubious distinction.

Suppliers gave GM low marks on all kinds of key measures, including its overall trustworthiness, its communication skills, and its protection of intellectual property.

The suppliers also said that GM was the auto maker least likely to allow them to raise prices to recoup unexpected material cost increases.

“As a result, GM is now the least preferred customer of suppliers,” PPI says.

Nissan Motor Co Ltd overtook Ford Motor Co for third place in PPI’s Supplier Working Relations Index, pushing Dearborn-based Ford into fourth place. Toyota Motor Co and Honda Motor Co Ltd finished in the No. 1 and No. 2 spots, respectively.
PPI, which has been conducting the survey for 14 years, says supplier perceptions of auto makers are critical because they can determine which car makers see the suppliers’ newest technologies first, get their best pricing and work with their best engineers.

John Henke, the head of PPI and a research fellow at Center for Supply Chain Management at Rutgers University, said the Japanese sweep of the top three places suggested the industry “could be entering an era in supplier relations that doesn’t bode well for the U.S. Big Three.”

The reason: the Japanese automakers are not just benefiting from a deterioration in relations between suppliers and the Big Three – they are actually rising in the estimation of their suppliers.

Toyota and Nissan, in particular, saw the percentage of suppliers who characterized their relationship with the two auto makers as “good or very good” surge.

GM, meanwhile, is in an especially unenviable spot, with 55 per cent of the suppliers surveyed characterizing their relations with the automaker as “poor to very poor,” up from 48 per cent last year.

One bit of good news for GM. When the list of car makers was expanded to include the three German auto companies, which have a far less significant market share in the U.S., suppliers said Daimler AG’s Mercedes-Benz and Volkswagen AG were even harder to deal with.

But because BMW ranked second in the expanded list, just below Toyota but ahead of Honda, GM’s overall position fell to seventh place in the supplier’s best/worst rankings.
Old 06-15-2015 | 10:16 AM
  #599  
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GM to Return to U.S. Medium-Truck Market - WSJ

GM to Return to U.S. Medium-Truck Market

U.S. auto maker will form joint venture with Japan’s Isuzu Motors

June 14, 2015

General Motors Co. is poised to re-enter the growing and potentially lucrative U.S. market for medium-duty work trucks, an area it abandoned during its restructuring last decade.

The Detroit auto giant will team up with Japan’s Isuzu Motors Ltd. to procure work trucks to be sold in the U.S. under the Chevrolet brand. GM and Isuzu have worked together for decades. While Isuzu will build the vehicles, the No. 1 U.S. auto maker in terms of sales will rely on the GM dealer network and its reputation as a truck company to lay claim to a medium-duty market that has grown 3.5% in 2015.

GM will begin taking the Isuzu-built N-series truck and putting a Chevrolet brand on it soon, according to dealers briefed on the plan. GM will unveil the partnership Monday in a move likely to be well-received by a U.S. dealer body clamoring for more work trucks to sell amid stronger economic conditions.

The contract-manufacturing relationship with Isuzu isn’t atypical for an auto industry looking to share the cost of developing new products. GM, for instance, also purchases work vans from Nissan Motor Co., rebrands them as Chevys and sells them in the U.S.

GM will supply an engine for the Isuzu-built Chevrolet medium-duty trucks, according to one person familiar with the production strategy. Financial terms of GM’s agreement with Isuzu aren’t immediately known.

The move represents the latest in a series of steps taken under Chief Executive Mary Barra and her predecessors in recent years to rebuild after years of downsizing. Facing a cash crunch last decade, the company killed brands, sold off or abandoned divisions such as Allison Transmission, and exited the business of directly financing auto purchases.

In 2010, it bought a finance company and earlier this year took steps to dramatically expand it, for example. It is investing $5.4 billion over the next three years to upgrade its U.S. manufacturing footprint and billions of dollars more into reviving Cadillac, growing in South America and fortifying its position in China.

There have been about 75,000 Class 4 through Class 7 trucks sold in the U.S. through May, according to automotive-information provider WardsAuto.com. That is up from 53,000 sold in the first five months of 2011 and 72,000 sold in the same period in 2014.

Medium-duty trucks serve a variety of roles, with highly capable cabs and chassis serving as the basis for dump trucks, garbage trucks, tow trucks and a variety of other functions. Sales of these vehicles can deliver substantial profits.

The GMC Topkick and Chevrolet Kodiak were built in GM factories and were once mainstays for medium-truck buyers, but the auto maker decided to abandon that market around the time it filed bankruptcy protection in 2009. The auto maker had forged an agreement in 2008 to sell the business to Navistar International Corp. , but that plan unraveled.

While the Isuzu joint venture is just a small step, it represents the beginning of what is planned to be a wider foray into a market where rivals Ford Motor Co. and Daimler AG have remained active. The move should provide at least a portion of GM’s Chevrolet dealers opportunity to make additional money selling, servicing and outfitting professional-use work trucks.

Last edited by AZuser; 06-15-2015 at 10:20 AM.
Old 07-15-2016 | 11:20 AM
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GM Faces ‘Catastrophic’ Assembly Disruption After Parts Supplier Goes Bankrupt

A Massachusetts-based parts supplier you’ve probably never heard of could force General Motors’ entire North American operation to grind to a halt.

Clark-Cutler-McDermott Co. stopped making acoustic insulation and trim pieces for GM vehicles on Friday after declaring Chapter 11 bankruptcy, a situation it blames on money-losing contracts signed with the automaker, a source told The Detroit News.

The supplier’s parts are found in almost every U.S. vehicle GM builds. With its workforce now laid off, and the supply chain disrupted, GM faces a grim situation — a shutdown of its assembly operations and millions of dollars in losses per day.

GM went to a U.S. District judge last month to impose a temporary restraining order on Clark-Cutler-McDermott, but that order expired at the beginning of the week. The supplier previously shut down on June 17, but the legal intervention briefly kept the supply of parts flowing.

In a court filing obtained by The Detroit News, GM spells out how serious the situation is:

A continued disruption in the supply of component parts will also cause a catastrophic disruption in the supply chain and the operations of countless GM suppliers, dealers, customers, and other stakeholders, including the potential layoff of tens of thousands of workers in the event GM’s North American operations are completely shut down.
The automaker is over a barrel — GM doesn’t have a backlog of parts to work with, as its contract with Clark-Cutler-McDermott was of the just-in-time delivery variety. No other supplier makes the parts Clark-Cutler-McDermott provides GM.

The supplier, which deals mostly with GM, claims its contracts caused it to lose $12 million over the past three years. In the court filing, GM claims it loaned the supplier millions of dollars to continue production.

A U.S. Bankruptcy Court hearing scheduled for today will map out where both companies go from here. Any number of scenarios could come from the ruling, including the supplier being forced to honor its contract with the automaker. So far, there haven’t been any assembly disruptions related to the issue.
GM Faces 'Catastrophic' Assembly Disruption After Parts Supplier Goes Bankrupt


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