Topic: GM Tidbits

[sirAQUAMAN64]

GM to boost ad spending for Cadillac DTS, STS

Jamie LaReau
Automotive News
June 4, 2007 - 1:00 am   
 
ST. LOUIS -- General Motors has bolstered its budget to aggressively market the slumping Cadillac DTS and STS sedans in the second half of the year.

Although the luxury sedan segment as a whole is down, GM is not happy with DTS and STS sales, said Mark LaNeve, GM's vice president of vehicle sales, service and marketing.

Through May, DTS sales were down 20.7 percent from the year-ago period, to 17,981 units. STS sales were down 18.1 percent to 8,091 units.

"Cadillac's brand health is already revived," LaNeve said at an event here. "It's not at the level we want to get it to be, but Escalade sales have been very strong. SRX sales have picked up.

"I'm not satisfied with STS and DTS sales, so we're working on very specific plans to get that back on track."

GM has allocated more marketing dollars for the second half of the year. "We'll have a lot of spending on it along with the CTS launch," LaNeve said. He would not say how much GM will spend but said Cadillac is re-examining pricing, incentives and equipment levels.

GM launches the new 2008 CTS sedan late this fall.

In the future, LaNeve said, he expects to see more alignment of Cadillac, Hummer and Saab in three-brand dealerships similar to GM's stores combining Buick, Pontiac and GMC.

"We've got quite a few of those already," he said. "I think you'll see even more of that because they'll be very complementary together."

[Allen]

Buick might finally be onto something
JEREMY CATO

From Thursday's Globe and Mail

E-mail
ST. LOUIS, MI. — General Motors Corp.'s Buick brand is hot — in China.

Last year, GM sold more than 300,000 Buicks in China, where the cars are extraordinarily popular with bureaucrats, Communist Party officials and, to a lesser extent, a still small but emerging group of upper-class businessmen.

By contrast, Buick is barely breathing in North America. Last year, Buick managed to move just 260,000 vehicles in Canada and the United States. The truth is, without China, Buick is not much healthier than Oldsmobile — yes, that Oldsmobile, the brand GM buried several years ago. This is why so much is riding on the launch of the latest Buick model, the 2008 Enclave crossover utility vehicle.

(For the record, the Enclave is a sister vehicle to the GMC Acadia and Saturn Outlook. Reports out of Detroit say GM is in the late stages of developing a new Chevy version — likely to be named the Traverse — built on the same mechanical underpinnings. Chevy needs its version because sales of the once-hot-selling TrailBlazer SUV are collapsing and GM has said it plans to drop the TrailBlazer entirely by 2010.)

 What matters here is that crossovers are the SUV of choice these days and Buick should benefit. Indeed, Buick is dropping its slow-selling Rainier SUV, a dressier version of the TrailBlazer. The Rendezvous, Buick's first crossover and a sister of the defunct Pontiac Aztec, is also going the way of the dodo.The Enclave looks to be a strong entry in a sizzling segment. In the critical U.S. market, crossover sales are up 14 per cent on the year. Why? They combine SUV features with a car-like ride and fuel efficiency.

The Acadia, Outlook and Enclave, all built in Lansing, Mich., look to be hits. Yes, the Enclave is only just now rolling into dealer showrooms in great numbers, so the jury is out on it. But monthly sales for the Outlook and Acadia have doubled in the U.S. since January and the vehicles accounted for almost 4 per cent of GM's overall sales in April, compared with 1 per cent in January.

This is why the GM types here in St. Louis can barely contain themselves. Finally, after too many years of mixed results, of promise after promise of a Buick revival that has yet to happen, Buick might finally be onto something.

The Enclave alone won't save the brand, but it could become a solid Lexus RX 350-type success story. And it all starts with pricing.

The front-drive Enclave starter model, a seven-passenger wagon with plenty of luxury features and the same quiet ride as all the other Enclaves, starts at $40,895. A loaded Enclave CXL with all-wheel drive goes for $51,295.

A five-passenger Lexus RX 350 starts at $51,550. A better comparison would be against the Acura MDX ($52,300-$61,900) and Mercedes-Benz's R-Class ($64,400-$102,000). Both are in the Enclave's sights as crossovers with three rows of seating, though neither is sold in a front-drive version.

Hyundai's new three-row Veracruz might also be thrown into the mix ($39,995-$45,995), along with seven-passenger versions of Volvo's XC90. It starts at $56,895.

There are others, but these are the key competitors, at least in the minds of Buick officials. And that means the Enclave is running in a tough crowd.

At least the newest Buick has quite a bit going for it.

First, the Buick brand, despite cratering sales, continues to find itself in the top tier of J.D. Power and Associates initial and long-term quality studies.

GM also appears to have done enough to clearly differentiate the Enclave from the Acadia and Outlook, despite the fact all three are essentially identical beneath the skin.

The Enclave is the most upscale and stylish of this trio, and it is certainly quieter and more refined.

For a tall wagon with loads and loads of room, the handling is decently crisp and the ride is well controlled, thanks to a tightly tuned suspension and communicative steering.

There is a good power story here, too. The 275-horsepower 3.6-litre DOHC 24-valve V-6 with variable valve timing and the six-speed automatic transaxle deliver respectable performance. There is certainly enough power here to tow, say, a boat on a long trip. Towing capacity is rated at 2,041 kg.

The point here is that somehow GM has managed not to make a soft wagon for "older" buyers and instead succeeded in targeting what most agree are the tastes of relatively demanding baby boomers.

Vehicle performance manager Larry Milhalko says the Enclave's solid structure and "sporty" suspension tuning makes sense for today's buyers.

By the way, all three GM crossovers have the same chassis setup. Milhalko says a single "optimized" calibration is good enough to satisfy all three brands' requirement. Doing just the one setup also saved money, which is no small matter for a company that lost more than $10-billion (U.S.) last year.

Despite so much shared hardware, the Enclave might just be the best Buick in decades. It all starts with design.

GM design boss Ed Welburn says the production Enclave traces its roots to the Buick Velite convertible concept of a couple years back. This Enclave, we're told, represents the future face of Buick.

That is, look for the next generation of Buicks to really emphasize fluid, romantic shapes with spectacular tire-to-body relationships, wide tracks, updated versions of Buick's waterfall grille and tasteful chrome accents. And this is exactly what we have in the Enclave.

Inside, the cabin has a mix of real mahogany (on the steering wheel), authentic-looking faux burl wood-grain and aluminum accents and chrome rings around the recessed and blue-lighted speedometer, tachometer, fuel, voltage and temperature gauges.

To dress it up, there is a round analog clock atop the centre stack. In addition, the instrument and door panels are trimmed in soft-touch composites in contrasting colours, and the seats are upholstered in supple perforated leather with French-seam stitching.

We spent a day driving around the outskirts of St. Louis on a mildly humid day and at the end of it the seats proved quite comfortable and supportive.

The standard manual adjustable column tilts and telescopes, but power operation would be better.

In the second row, there is room for adults and even the third row will do for short hops. Behind it is the biggest cargo area in the class, with the seats up.

Speaking of seats, the second row adjusts fore-aft if one wants to trade off legroom with the third row. The second-row seats also flip forward for easy third-row access, or fold flat to extend the floor for a cavernous cargo capacity.

On the road, well, we need to mention what Buick calls "quiet-tuning." Extra door seals, thick padding in strategic places, thick glass and other engineering feats have given the Enclave one of the quietest rides in the industry. It is possible for the driver to carry on a conversation with a passenger in the third row — without raised voices.

The Enclave, then, shows that Buick still has life in it.

[Scaerio]

I saw an Enclave yesterday, and I have to admit it is an attractive machine.  Best looking of the three new GM crossovers.  It deserves to do well on looks alone.

Adopting the better-looking front end styling found on the Chinese LaCrosse might help the North America market Allure/Lacross that has that stupid gaping fish-mouth grille and piggy eyes...


Selling the Chinese RWD Park Avenue might also add some interest...


The Lucerne is a classy looking vehicle.  I wouldn't mess with it.

[Mitlov]

On page 9 of this thread, I've already said all I can about what styling direction Buick should take 

[sirAQUAMAN64]

Opel riding ecology wave
Its new scrapping bonus is expected to soften decline in sales
Jens Dralle Automobilwoche |
June 18, 2007 - 3:08 pm
 
RUESSELSHEIM -- Opel is taking action against the so-called consumer buying strike triggered by Germany's CO2 debate with a broadly based marketing campaign.

"We already have numerous models with carbon dioxide emissions under 140 grams per km," said Alain Visser, Opel's marketing chief for Europe. "We want to use the campaign to draw attention to them."

The Ruesselsheim-based automaker is also paying a scrapping bonus of up to 2,000 euros ($2,679) for old vehicles if a new, fuel-efficient car is purchased. In addition, the new car can be financed interest-free for 24 months.

"We badly need this campaign," Visser admitted, referring to the current sharp drop in consumer purchases.

In May, Opel's German sales were down 28.8 percent compared with the same month last year.

The "ecoFlex" initiative is just a first step toward positioning Opel as an environmental brand. Visser is promising that Opel will soon introduce a new, especially efficient model.

About four years ago, Opel had the Corsa Eco in its lineup. Because of a number of technical modifications, it consumed less than four liters of gasoline per 100 km. But the market didn't embrace the vehicle as Opel had hoped.

EcoFlex is supposed to avoid a similar fate with Opel's eco-vehicles with natural gas propulsion. They include the Zafira CNG and the Combo CNG.

According to Opel, the seven-seat Zafira has the lowest CO2 emissions per passenger of any car, It has received four stars -- the highest possible rating -- on a list of environmentally friendly vehicles compiled by ADAC, Germany's largest automotive club.

"Since hybrid drive, as well as engines designed for bio-ethanol fuel, are available within the corporation, these powertrains can be implemented for Opel," Visser said.

In the short term, the company will rely on efficient diesel and gasoline engines. Hybrids will be an issue for the medium term, Visser said.

Insiders say Opel doesn't foresee hybrids as part of the next Vectra generation -- although the current U.S. model, the Saturn Aura Green Line, is being offered as a hybrid. But it still emits even more CO2 than most of the current Opel models.

[sirAQUAMAN64]

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070621/BIZ/706210416/1148/AUTO01

GM will build luxury condos on riverfront

Construction of high-rise near RenCen to start in '08

Sharon Terlep / The Detroit News

DETROIT -- General Motors Corp. struck a deal with a prominent development firm to build luxury condos at the epicenter of Detroit's riverfront, a move that comes as efforts to rebuild the city's long-neglected waterfront are coming together.

GM said Wednesday it will give the Houston-based Hines real estate firm six acres just east of the automaker's world headquarters in the Renaissance Center in exchange for a cut of the future profits from the development.

If the plan comes together as envisioned, the developers eventually would build 600 luxury condominiums that would sell for roughly $300,000 to $1 million.

Hines will build the project in phases, starting with a high-rise condo tower on a one-acre plot next to the RenCen. If that's successful, more will follow on three more adjacent parcels.

The developer hopes to break ground in the spring of 2008. The first residents could move in by the following spring. The overall project could take five to 10 years to complete.

While GM has for years promised to bring residential development to the riverfront, Wednesday's announcement is the most concrete sign yet that the vision will become a reality.

"We clearly want to be a part of the fabric of a great downtown and a great urban center," said Matthew Cullen, head of GM's Economic Development and Enterprise Services. "There needs to not only be places to work and shop, people need to be living there. It needs to be a 24-7 environment."

The development will be largely residential, designed to take advantage of the waterfront property and the many amenities offered in the RenCen, which houses retail stores, a movie theater, and restaurants.

Hines will head up the development project, though GM will weigh in on any plans.

The riverfront for years offered little more than a few struggling businesses, dilapidated buildings and acres of land scarred by heavy industry. The area is now designated as a Renaissance Zone, allowing for significant tax breaks.

GM took a lead role in the riverfront's redevelopment with its $500 million acquisition and remodeling of the Renaissance Center, which replaced the GM Building as the corporation's global headquarters in 1996.

Detroit and the state then demolished three cement silos along the river, making way for the Detroit RiverWalk that's now taking shape.

GM timed Wednesday's announcement just before the first Detroit International RiverDays, which starts Friday with the waterfront promenade at the center.

The event will mark the grand opening of the East RiverWalk, a 3.5-mile walkway from Joe Louis Arena to the Belle Isle Bridge.

To be a successful center of city life, the public sections of the walk must be paired with robust retail and residential development, said Caroline Marks, spokeswoman for the RiverFront Conservancy, the nonprofit organization that will oversee the RiverWalk.

"A riverfront can't be just one thing or another -- it has to be a big comprehensive picture," she said.

Even as Detroit loses population, the city's center is attracting a core of young, educated and affluent residents to new housing, according to a market study released earlier this year by Katherine Beebe & Associates.

The downtown core, roughly bordered by the Detroit River, the Lodge and Interstates 75 and 375, grew to 6,259 residents in 2005 from 6,141 residents in 2000.

While relatively small, the gain is seen as vital to a city that has lost more than 50,000 residents since 2000.

"We are convinced even though it's a tough time for our resident real estate market, there's still a lot of pent-up demand for people to live in the city of Detroit," Cullen said. "There is no better real estate in the region."

Hines has experience in Detroit. It was hired by GM to oversee the RenCen makeover and built the Comerica tower downtown. It also manages the City-County Building and Compuware headquarters, both downtown.

It is one of the world's largest real estate firms, with more than 950 properties worldwide and $16 billion in assets.

"We understand that Michigan is having a bit of a lull, but we sense some strength in the downtown residential market," said Dean Stermer, a project manager at Hines' Detroit office. "We're going to aim for the top of the market in terms of what's available in Detroit."

The Hines development joins three other major riverfront projects in various stages.

Ex-Detroit Piston Dave Bing is heading up a $60 million luxury residential development -- called Watermark Detroit -- that calls for 112 apartments, town homes and condos priced from $400,000 to $1.2 million.

Another project known as Chene East, still in its early stages, is envisioned as a residential/retail development on a 40-acre parcel near the Belle Isle bridge.

A third riverfront project -- the @water, pronounced "Atwater," by developer Dwight Belyue -- began selling 225 units, including $1.5 million penthouses, in March. Deposits have been put down for 40 units, including two penthouses.

[sirAQUAMAN64]

Delphi reaches labor deal with UAW, GM
David Barkholz
Automotive News
June 22, 2007 - 3:13 pm
UPDATED: 6/22/07 3:32 p.m.

DETROIT -- The UAW has reached a tentative agreement with Delphi Corp. and General Motors on a new labor deal for the bankrupt parts supplier, the company announced today.

The agreement is subject to union ratification and approval by the U.S. Bankruptcy Court. Details were not immediately available.

"If ratified, we believe this agreement will be a significant milestone in our transformation and a major step toward emergence (from bankruptcy protection)," John Sheehan, Delphi's chief restructuring officer, said in a statement. "The (agreement) is a testament to the dedication and hard work of the UAW, Delphi and General Motors teams."

UAW Local 2195 committeeman Jeff Dockery said today that a ratification vote at Delphi's steering plant in Athens, Ala., is scheduled for Thursday, June 28. Local 2195 represents about 1,200 UAW workers at the plant.

Also, about 400 hourly workers who took early retirement as part of last summer's GM-financed buyout of Delphi workers will vote on the agreement, Dockery said. They are still deemed as active or preretirement. They pay union dues.

He said he received word on the agreement from local presidents convened in Detroit today to hear details of the deal. He said the briefing is continuing and he did not have details.

UAW, GM and Delphi spokesmen could not immediately be reached for comment.

In recent days, reports have surfaced that the UAW was close to concluding a deal with Delphi.

The two sides were trying to bridge differences over how fast wages and benefits should rise for the thousands of new hires who replaced more than 20,000 UAW members who took buyouts and early retirements last year.

Only 4,000 workers remain at Delphi who began working there before it entered Chapter 11 reorganization in October 2005.

A new labor deal is necessary for the company to leave reorganization, probably next year.

Competing private equity groups are trying to buy Delphi and position it as a largely overseas electronics company. The two groups are led by Appaloosa Management LP and Highland Capital Management LP.

In a statement, GM said it "is encouraged by the continued progress, and remains committed to working with the UAW, Delphi and other parties to reach a final resolution that will allow Delphi to emerge as a more competitive strategic supplier."

You may e-mail David Barkholz at dbarkholz@crain.com
 


PRESS RELEASE: Delphi Signs Memorandum of Understanding With UAW and General Motors
For a complete listing of our news releases, please http://investor.delphi.com/phoenix.zhtml?c=105758&;p=irol-news">click here

TROY, MI, Jun 22, 2007 -- Delphi Corp. announced today it reached a tentative agreement and signed a Memorandum of Understanding with the UAW and General Motors covering site plans, workforce transition as well as other comprehensive transformational issues. The agreement is subject to union ratification and approval by the U.S. Bankruptcy Court.

"If ratified, we believe this agreement will be a significant milestone in our transformation and a major step towards emergence," said John Sheehan, Delphi's chief restructuring officer. "The Memorandum is a testament to the dedication and hard work of the UAW, Delphi and General Motors teams."

Delphi will not provide commentary on the details of the Memorandum at the current time.

For more information about Delphi, visit www.delphi.com.

[sirAQUAMAN64]

Saab’s path to profit: Fewer sales
Swedish carmaker believes it can make money building 160,000 to 170,000 cars a year
Wim Oude Weernink
Automotive News Europe
June 25, 2007 - 1:00 am   

GOTHENBURG, Sweden -- Saab believes a lower sales target will help make the General Motors brand profitable again.

“You can stretch your ambitions for a premium brand too far. There is a natural limit where you can earn,” said Carl-Peter Forster, president of General Motors Europe and chairman of Saab. “Therefore, we have much reduced our volume ambitions, to 160,000 to 170,000.”

Forster’s objective is a big step back from the goal of 250,000 units a year set by former Saab Chairman Peter Augustsson in 2000. Augustsson left Saab in March 2005.

Despite the smaller sales volume, Saab officials expect that lower costs combined with a renewed product lineup and increased sharing of GM architectures will deliver profits.

In March, Forster said Saab would make money “toward the end of the decade.”
 


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To the rescue
The addition of the 9-4 and 9-1 will double Saab’s lineup
Saab 9-5: Launches 2009*
Saab 9-4X: Launches 2009
Saab 9-1: Launches 2010
Saab 9-3: Launches 2011*
*New generation

 

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Record sales

Last year, Saab sold a record 133,167 cars worldwide.

That was not enough to make the Swedish carmaker profitable, said Jan-Ake Jonsson, managing director of Saab. He declined to comment in detail on Saab’s financial results. GM does not provide a divisional breakdown of earnings.

“There is still work to do to take out more cost,” Jonsson said. “But we are not that far away from breakeven.”

New architecture

New and redesigned products are on the way.

The next generation of Saab’s mainstay 9-3 and 9-5 lines will shift to GM’s Epsilon 2 global architecture in 2009. Both will be built at the Opel plant in Rüsselsheim along with the successor to the Opel/Vauxhall Vectra.

The all-wheel-drive system on the refreshed 9-3 will be an option on all future Saab and Opel/Vauxhall models. Sweden’s Haldex supplies the system.

The 9-2X, a mildly modified version of the Subaru Impreza, is gone.

To have an entry model in its lineup, Saab is refitting the Trollhättan, Sweden, assembly plant to build the 9-1, a four-door wagon. Saab sources said the 9-1 will compete with the Audi A3 and BMW 1 series.

More cars for Opel

“Eventually, GM Europe will build only lower-medium models [in Trollhättan], with an annual volume of about 100,000 units,” Jonsson said. He did not want to say what volume Saab has in mind for the 9-1, but sources familiar with the company’s planning said it would be about 30,000 units.

Jonsson added, “With that 100,000-unit volume, we need to produce lower-medium models for other GM brands, Opel for instance.”

Also coming is the 9-4X, a mid-sized station wagon/SUV crossover that uses a re-engineered Theta vehicle architecture. It is expected to debut in 2008 or 2009.

The 9-4X likely will share its platform with a similar Cadillac model, expected to be called the BRX.

The Saab and Cadillac models could be built in Mexico, according to sources.

BMW’s X3 will be one of the Saab 9-4’s rivals in the market.

[sirAQUAMAN64]

Chevy late with '06 blowout?
Rick Kranz
Automotive News
June 25, 2007 - 1:00 am
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Leftovers
Chevy's top 5 unsold 2006 models
1. Colorado 1,588
2. Monte Carlo 1,390
3. Express cutaway/G 1,100
4. Cobalt 865
5. Malibu 842
 
DETROIT -- Chevrolet's 0 percent interest program to sell 10,000-plus new 2006 models sitting on lots nationwide strikes some Chevy dealers as being way overdue.

The program, which began June 15 and expires Wednesday, June 27, offers 0 percent financing for up to 60 months on 2006s, including 404 Corvettes and the last 16 SSR hot rod pickups. As an alternative, rebates of up to $7,000 are available on some models.

"It's great," said one Chevrolet dealer who has more than 20 2006 vehicles in stock. "I'm as happy as a lark, but why weren't we doing this six months ago? I have to get rid of these things."

Traditionally, GM has launched a program late in the third quarter or the beginning of the fourth quarter to help unload the previous model year's vehicles.

Chevrolet spokesman Terry Rhadigan acknowledged that dealers would have liked an incentive in late 2006. But, Rhadigan said, "That is when we were trying to make money for 2006." He says the current backlog of 2006s is "pretty manageable."

A second Chevrolet dealer said the lack of good incentives on the 2006s has prompted buyers to select a 2007 model, which has the advantage of a 5-year/100,000-mile powertrain warranty.

Last week, Chevrolet told dealers that 10,231 2006 models were in inventory nationwide. Colorado pickups topped the list with 1,588 units, followed by the Monte Carlo with 1,390. At the bottom were the Suburban with 10 units and the TrailBlazer EXT with four.

[sirAQUAMAN64]

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070625/UPDATE/706250395/1148/AUTO01
Gettelfinger praises General Motors; blasts Delphi management over union deal

Associated Press

DETROIT -- United Auto Workers President Ron Gettelfinger today credited General Motors Corp. for helping reach a tentative wage-concession deal for Delphi Corp. workers that is meant to help the struggling auto supplier emerge from bankruptcy and avoid a strike.

Meanwhile, Gettelfinger continued to criticize Delphi's leaders, whom he said were only interested in dragging out the bankruptcy and turning Troy-based Delphi into a foreign company.

"If it weren't for (GM Chief Financial Officer) Fritz Henderson and his team ... this agreement never would have come about," Gettelfinger said in an interview on "The Paul W. Smith Show" on WJR-AM (760) in Detroit.

The Associated Press left a message Monday morning seeking comment from a Delphi spokesman.

Gettelfinger wouldn't give details of the agreement, signed Friday by Delphi and UAW leadership. Union members were expected to hear details beginning Monday on the pact, which still must be approved by the 17,000 UAW members and a federal bankruptcy judge in New York.

[sirAQUAMAN64]

Leo Burnett wins Buick, GMC accounts
Jamie LaReau
Automotive News
June 26, 2007 - 12:01 am   

DETROIT -- As General Motors consolidates Buick, Pontiac and GMC dealerships, it also is combining those brands’ advertising work, sources familiar with the move say.

In a surprise development, GM told dealers Monday that it has fired longtime advertising agencies McCann-Erickson and Lowe & Partners Worldwide, New York from the Buick and GMC accounts, respectively.

GM is consolidating all advertising for the three brands within Pontiac’s advertising agency, Leo Burnett Detroit. The change is effective October 1.

“They said it had nothing to do with the quality and capability,” says a dealer familiar with the news, who asked to not be named. “They want to streamline their approach by using one agency.”

McCann-Erickson and Lowe are longtime agencies for Buick and GMC. McCann-Erickson has done Buick’s advertising for nearly 50 years.

Last week, GM chief marketer Mark LaNeve indicated that Buick would focus its ads more on product and less on the brand’s celebrity endorser, golfer Tiger Woods.

LaNeve, vice president of North American vehicle sales, service and marketing, has shaken up GM advertising. Last June, he fired Leo Burnett Detroit from the Cadillac account and gave it to Modernista. Burnett had held the account since 1935.

Last year, Chevrolet’s ad agency, Campbell-Ewald, lost a piece of its business to Deutsch, of Los Angeles. Deutsch handled negotiations for Chevrolet’s 2006 Major League Baseball and motorsports ad campaigns.

A Buick-Pontiac-GMC spokeswoman declined to comment.

Sources say GM also told dealers that the last Pontiac Grand Prix will be built in November and that a “major portion” of the final production of the vehicle will go into rental fleet sales.

[sirAQUAMAN64]

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070627/AUTO01/706270345/1148
GM cars play action heroes in 'Transformers'

Ann Job / Special to The Detroit News

HOLLYWOOD, Calif . -- The folks at General Motors Corp. are walking around a little starry-eyed these days, with an extra spring in their step and Hasbro toys in their hands.

In a product placement coup, four GM vehicles, including a new generation Chevrolet Camaro due out in 2009, won starring roles in the heavily hyped new action flick, "Transformers."

While automakers regularly wheel and deal to place their cars in films, GM's vehicles are cast as shape-shifting action stars in the expected summer blockbuster directed by Michael Bay.

"This is a wonderful opportunity for General Motors to get its product in front of millions of people," said Tim Calkins, clinical professor of marketing at the Kellogg School of Management at Northwestern University. "It keeps (GM) current; it builds awareness."

While vehicles starring in a movie won't necessarily "drive people into showrooms like a rebate program will drive them into showrooms, it will reach people in a very different setting," he said.

The other GM stars in "Transformer" are the Pontiac Solstice, a Hummer H2 and GMC TopKick pickup truck.

"We're the heroes, all four of our vehicles are good guys," said Dino Bernacchi, who oversees GM's movie deals. "They all are cool cars that fit the personalities of the characters."

GM officials will be on hand for today's Hollywood premiere of the DreamWorks Pictures and Paramount Pictures production. The movie opens Tuesday.

If you're not up on Transformers lore, it was a popular toy line and TV cartoon in the 1980s and has a cult following worldwide. Good autobots battle evil Decepticon robots, with cars and trucks transforming from vehicles into giant robots.

More than meets the eye

GM officials didn't have to search out this film opportunity. Hollywood came to them, even before the automaker's executives had decided to show a Camaro concept coupe at the auto show in Detroit in 2006, and later to put the new Camaro into production.

"This is the ruby of rubies for a car company," said Michael Bay, "Transformers" director. Bay previously worked with GM on "Bad Boys II" and "Armageddon."

Still, GM wasn't a shoo-in for the prime vehicle roles. In fact, Bay initially was considering another carmaker for at least one character. The original Bumblebee autobot was a yellow Volkswagen Beetle. But the yellow Camaro concept became the inspiration for the movie Bumblebee after Bay saw a picture of the concept car and later a full-scale model.

It's a perfect fit because "it's a muscle car and still state of the art," he said. "The biggest problem was that the car wasn't being made."

This didn't stop Steve Tihanyi, who was then overseeing GM's movie deals, and the automaker's design staff from using whatever they could to create the Camaro and fiberglass shells in time for filming in 2006. Tihanyi is a Cadillac regional/divisional marketing manager.

Pontiac's Solstice won the role of Jazz, which was played by a Porsche in the cartoon. The Solstice also had to be created because GM was only selling it as a convertible as filming began. Bay wanted Jazz to be a gray, hardtop Solstice.

Search-and-rescue vehicle Ratchet is played by a Hummer H2 that's painted a fluorescent light green and modified with a winch and brush guard in front, shovels on its sides and off-road lights. And rugged off-roader Ironhide is played by a GMC TopKick pickup truck with a Duramax diesel engine.

Ford Motor Co. also has a presence in "Transformers." A Saleen Mustang police car, complete with light bar on the roof and a push bar, is a Decepticon.

Endless possibilities

The film is poised to attract a wide audience, which means the exposure for GM's vehicles, especially the Camaro, could be huge.

"The fact is, we're showcasing really exciting products, like the Hummer, like the Solstice and the Camaro, and they can be cool and hip for a new generation worldwide," Tihanyi said.

GM won't release details of its studio financial arrangement.

The film's debut is just the start of marketing opportunities. "Transformers" is expected to be out on DVD before Christmas, and Hasbro already has crafted toys of the film characters.

"You're talking about a film that should bring in $700 million to $1 billion across the globe. You don't always get these big, blockbuster opportunities," Tihanyi said.

It may be only the beginning for GM's "Transformer" stardom. The movie's ending leaves plenty of room for a sequel.

[sirAQUAMAN64]

This should be big news. The Allison transmission is a dynamite asset for GM, so don't know why they'd be so keen on selling. But it is worth some cash.

GM to sell Allison Transmission to Carlyle Group, Onex

Automotive News
June 28, 2007 - 9:38 am   

General Motors said this morning it has agreed to sell its Allison Transmission commercial and military business to private equity firms Carlyle Group and Onex Corp. for about $5.6 billion.

The agreement includes seven manufacturing operations in Indianapolis and a worldwide distribution network and sales offices.

GM said it would retain a plant in Baltimore that makes conventional and hybrid two-mode transmissions used in GM’s light trucks.

The transaction is expected to close in the third quarter, pending union and regulatory approval.

[articsteve]

so don't know why they'd be so keen on selling. But it is worth some cash.

It reflects the dire state of their operating capital.  0 % does that.  Ask Hyundai. 

[safristi]

so GM is gonna be RUDDERLESS and INDEFENSIBLE Too...................Much........

[sirAQUAMAN64]

GM expands push into diesels with VM Motori stake
Jamie LaReau and Luca Ciferri
Automotive News
July 17, 2007 - 12:01 am

DETROIT -- General Motors' purchase of half of Italian diesel maker VM Motori from Penske Corp. on Monday gives the automaker more diesel technology and new engine-manufacturing capacity.

GM and Penske, which retains the other half of equity, will form a joint venture to operate VM Motori, Centro, Italy. GM declined to disclose terms of the deal, which is expected to close in the third quarter.

Dan Hancock, vice president of global engineering for GM Powertrain, called the purchase "a good value."

This is GM’s latest acquisition of diesel technology from Italy.

From 2000 to 2005, GM had a strategic alliance with Fiat Auto that covered powertrains. GM paid Fiat $4.4 billion during the life of the alliance. When the deal was dissolved in February 2005, GM kept half the intellectual property of Fiat’s 1.3-liter and 1.9-liter diesel engines, and half ownership of Fiat's former engine plant in Biesklo Biala, Poland, which builds the 1.3-liter engine.

VM Motori has a history with GM, first as an engine supplier and more recently as a development partner. In 1997 VM Motori began supplying GM with diesels for the Opel and Vauxhall Frontera SUV.

In March, GM said at the Geneva auto show that it would jointly develop a 2.9-liter V-6 turbodiesel engine with VM Motori. GM plans to use it in the Cadillac CTS sedan in Europe in 2009.

"This purchase builds upon our commitment to diesel technology and builds upon a relationship we already have with VM Motori," Hancock said Monday in a call with reporters.

Growth for diesels

GM sees an opportunity for diesel engines in light-duty commercial vehicles, Hancock said, especially in markets such as China, Russia, India and Latin America. In Europe, diesel engines are popular in personal vehicles.

"There is a growing importance of light commercial vehicles when looked at from a global context," Hancock said. "Light commercial vehicles account for 32 percent of the sales in the emerging markets. We see this to be a very strong and continually growing market opportunity."

GM is developing at least two diesel engines. One is a 4.5-liter V-8 slated for the Hummer H2 SUV and the Chevrolet Silverado and GMC Sierra pickups. The other is the 2.9-liter V-6 for the Cadillac CTS.

GM is considering diesel engines because they offer 25 to 30 percent better fuel economy than gasoline engines of the same size.

For the United States, GM is increasing its investment in diesels, Hancock said. He declined to discuss which US products would get diesels, saying a lot depends on 2010 fuel emissions regulations under consideration.

"We need to place a lot of bets in a lot of different areas," Hancock said.

GM is studying which of its products could benefit from hybrid or diesel powertrains, he said.

Last week, in a video on GM's Web site, GM Vice Chairman Bob Lutz said the automaker will offer new diesels in a couple of years in US passenger cars.

There will be a separate board for VM Motori because it is a joint venture with Penske, Hancock said.

"At the end of the day, GM will have management control over VM Motori," he added. "But we plan to work very cooperatively with Penske."

GM offers 17 diesel engine variants in 45 vehicle lines worldwide. It sells more than 1 million diesel-powered products annually.

VM’s business grows

VM Motori plans to build 96,000 diesel engines this year. Company revenues are expected to reach 400 million euros, or $551 million at current exchange rates.

In 2006 VM Motori built 76,000 engines and posted revenues of 300 million euros, or $413 million at current exchange rates.

VM Motori’s main automotive customers are DaimlerChrysler and London Taxi International, the makes of London cabs.

VM Motori also has contracts to build engines with Jiangling Motor Co. in China and GM Daewoo Auto and Technology in South Korea. The company’s engines are also used in some Chevrolet models sold in Europe.

[sirAQUAMAN64]

GM: 4.5-liter diesel will be quiet, clean
Richard Truett
Automotive News
July 16, 2007 - 12:01 am   
 
DETROIT -- The 4.5-liter turbocharged diesel engine that General Motors plans to introduce in 2010 in light-duty pickups will have breakthrough technology in emissions and noise reduction, says the engine's assistant chief engineer, Jim Minneker.

The new diesel is being designed to meet the most stringent federal and California emissions standards and will be available in all 50 states, Minneker said. It will use a urea injection system to control oxides of nitrogen, or NOx.

But GM won't be part of the German Bluetec alliance of Mercedes-Benz, Volkswagen, BMW and Audi. Those automakers plan to sell their clean diesels under the Bluetec banner.

Although he wouldn't get into specifics, Minneker said the new engine will have advanced technology that reduces the production of NOx in the cylinder. NOx is suspected of causing cancer.

Another goal, he said, is to make the new diesel engine the smoothest and quietest in the industry - something GM may have to do to silence critics who remember the automaker's troublesome diesels of the late 1970s and early 1980s.

GM has been granted a patent for the engine's crankcase and has applied for more patents for the fuel and emissions systems, said Minneker, a 37-year GM powertrain veteran.

In other diesel developments, GM confirmed last week that it plans to install diesel engines in Cadillac and Saturn cars and crossover vehicles in 2010.

GM will use a 2.9-liter V-6, made in Italy by VM Motori, in the Cadillac CTS and Saturn Aura.

[safristi]

Hey white Lab rats cause cancer....don't Nox 'em................I'm waitin ta sell my UREA fer a fortune when diesels make IT BIG,,,,,,,,,,,,,,,,,,,,,,

[Allen]

GM reports slight rise in global sales on emerging market gains
DAVID RUNK

Associated Press

July 19, 2007 at 11:10 AM EDT

DETROIT — General Motors Corp. says strong growth in Latin America, Asia and other emerging markets lifted global sales by 0.4 per cent in the second quarter, according to preliminary sales figures released Thursday.

GM said it sold 2.405 million vehicles in the April-June period, up from 2.395 million in the second quarter last year.

For the first quarter, Toyota Motor Corp. said it sold more cars and trucks than GM did for the first time ever. Second-quarter global sales from Japanese auto makers, including Toyota, are expected to be released later this month.

“We're on track to have our second-best annual sales performance in our almost 100-year history,” John Middlebrook, GM's vice-president for global sales, said in a statement.

GM's sales in Latin America, Africa and the Middle East grew 19.7 per cent, while sales in Asia rose 8.2 per cent. Sales in Europe rose 4.7 per cent, while sales in North America fell 7 per cent.

“Three of four regions are on record paces this year,” Paul Ballew, GM's executive director of global market and industry analysis, said in a conference call with reporters and industry analysts.

GM said second-quarter vehicle sales outside the U.S. were a record 1.39 million, accounting for about 58 per cent of GM's global sales. That's up nearly eight per cent compared with the second quarter of 2006.

U.S. sales, Mr. Ballew noted, continued to feel the effects of high gas prices and the weak housing market. GM also is weaning itself from low-profit sales to rental car companies.

But GM noted that its Saturn brand continued to grow in the U.S. and Canada, up nearly 27 per cent based in part on sales of the Sky roadster, the Aura mid-sized car and the Outlook crossover.

GM shares fell 27 cents to $35.73 in morning trading Thursday.

GM has been the world's largest auto maker for 76 years.

The title of the world's No. 1 auto maker depends on annual worldwide vehicle production, rather than sales, so that distinction won't be determined until production numbers are released for the entire year.

[sirAQUAMAN64]

Just for INCO 

http://www.detnews.com/apps/pbcs.dll/article?AID=/20070723/AUTO01/707230318/1148

Brown is the new Buick

Enclave's cocoa metallic could be new color of luxury

Sharon Terlep | The Detroit News

Once synonymous with grit and grime, brown has come to embody something entirely different for a generation of Starbucks-obsessed consumers.

Something luxurious, tasty even. A little like a latte.

At least that's the thinking behind General Motors Corp.'s decision to launch one of its most critical new vehicles -- the Buick Enclave crossover -- in a brunette hue called cocoa metallic.

Brown rides haven't been hip since the 1970s. But GM is banking on a brown renaissance, already under way in the worlds of fashion and interior design, to take hold in the auto industry.

"It used to be that when you asked people what they associated brown with, it was mud and dirt," said Chris Webb, GM's creative designer for interior-exterior color. "Now, it's luxury.

"We call it the Starbucks effect."

With that in mind, GM cast the Enclaves used in ads and at auto shows in the cocoa color. It was the hue that adorned the vehicle when it debuted as a concept at the 2006 auto show in Detroit and the color used when Buick rolled out the final version in Los Angeles last year, Tiger Woods in tow.

GM is trying to position the Enclave, which hit showrooms this summer, to compete with such luxury names as Lexus, Volvo and Acura.

It was the last of GM's crossover trio to go on sale, preceded by the sportier GMC Acadia and more affordable Saturn Outlook.

The Enclave is central to GM's efforts to revive Buick's flagging U.S. sales. Given its importance, much thought was put into what color would grace the vehicle when it debuted at auto shows and in advertisements.Webb was particularly interested in the story of delivery giant UPS. Instead of scrapping its brown-and-yellow logo, seen by some as dowdy, UPS embraced it. Thus the now-famous "What can brown do for you?" campaign was born.

Since then, Webb said, studies show more consumers recognize the UPS name and the company's market share is up 3 percent.

Color emphasizes curves

Buick could use a similar boost. Sales are down 28 percent through June.

But the Enclave, with sales of 3,659 in the first half of the year, is generating enthusiasm among dealers and auto critics.

"Color can do amazing things on the look of the car," said George Kang, an analyst with Edmunds.com, an online auto site.

"Especially on how the lines appear."

Kang said the Enclave's cocoa helps emphasize the vehicle's dramatic curves and styling.

Mated with the Enclave's glowing blue headlights, the vehicle mimics the brown-and-blue combo popular in the fashion industry.

Silver has gone mainstream

More variants on brown are likely to hit the road as automakers look for new colors to distinguish luxury rides. Silver used to do the trick, but that's mainstream, Kang said, and companies are looking for new options.

"Brown is being marketed as an upscale, luxury look," said Karen Surcina, color marketing and technology manager for DuPont Automotive Systems.

In a DuPont survey of the most popular car and truck colors of 2006, brown was at or near the bottom of the list in every segment. Only green, gold and orange scored lower. But cocoa metallic is the most popular color for the Enclave, adorning one of every five cars sold.

Jay Singer and his wife fell for the Enclave after seeing it at the Detroit show last year. A longtime loyalist of Chrysler minivans -- and usually red vehicles -- Singer was surprised to find himself falling for a brown Buick.

"Everybody has a silver car -- right there that turned us off," said Singer, a school teacher in the Cleveland suburb of Pepper Pike, Ohio, reached through Edmunds.com's car consumer forum.

The cocoa was especially appealing, combined with a leather interior in a color called cashmere.

"I said, 'If we get it, it's got to be in that color,'" Singer said. "It seemed symbiotic. I guess it's a good thing when you have that kind of emotional reaction."