GM Tidbits

[MKII]

BRUSSELS (Reuters) - U.S. carmaker General Motors Corp (GM.N: Quote, Profile, Research) is considering building Saturns at its plant in the Belgian city of Antwerp, a spokeswoman said, in a move that could spare workers from reported job cuts.

According to Belgian media, General Motors planned to cut up to 1,000 jobs at its plant in Antwerp, Belgium's second-largest city. German rival Volkswagen (VOWG.DE: Quote, Profile, Research) this week said it would slash about 70 percent of its workforce in the Belgian capital.

"We have an investigation phase to see if it is feasible to build Saturns in Europe and since Antwerp is an Astra plant then it is one of the possibilities," General Motors Europe spokeswoman Nathalie Van Impe said.

The Saturn brand includes a model similar to the Opel Astra.



Belgian financial daily De Tijd reported on Thursday that such a move would be at odds with the rumored job cuts.

Asked about the implications for job security if Saturn production started in Antwerp, she said: "(Job cuts) are not an option in the short term."

She noted however that Astra volumes were falling in Europe and the group was mulling options to deal with overcapacity.

If volume continues to go down, "we will discuss this with our social partners," she said.

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=basicIndustries&storyID=2006-11-23T130306Z_01_L23222860_RTRIDST_0_SP_PAGE_023-L23222860-OISBI.XML

[sirAQUAMAN64]

GM targets smaller, more profitable Buick brand

Reuters / November 29, 2006 - 8:00 am
 
LOS ANGELES -- General Motors is prepared to nearly halve the number of Buick models it offers in the United States as it tries to reestablish the luxury brand in its home market, GM's chief executive said on Tuesday, Nov. 28.

Rick Wagoner, speaking to reporters at the unveiling of the 2008 Buick Enclave, said the automaker would also reduce Buick sales to rental car companies as it shifts toward targeting more profitable retail sales with upcoming new designs.

Although Buick has offered as many as seven models in recent years, Wagoner said GM was prepared to accept lower unit sales with about four models in order to try to capture more showroom traffic and shun lower-margin sales to car rental companies.

"In the end we're going to let it flow. But what we're going to do is to make sure we make three and then four really good (Buick models)," Wagoner told reporters.

GM has been pushing dealerships to consolidate into stores that offer its GMC trucks along with Buick and Pontiac models.

Wagoner said that push combined with the success of Buick in China would help turn the brand around in the U.S. market, where it has struggled to attract a younger generation of buyers.

"We've had a terrific run in China with Buick," he said. "Buick sells to the upper crust in China. That's going to open up some opportunities over time for product sharing that we wouldn't have had or even thought of five years ago."

He added: "We don't have to play hard in daily rental with Buick because frankly we've got other brands to play that role. We want to run a lot of volume through Chevrolet. It is the brand that should play broadly and if we need to push for some volume that's the place to push for it. Buick, we can focus."

GM is showing off the production version of the Buick Enclave at the Los Angeles auto show.

The five-door luxury vehicle is expected to compete against the Acura MDX from Honda Motor Co. as well as the Lexus RX 350 from Toyota Motor Corp.

Production of the Enclave is expected to begin in mid-April, with dealer inventory available by early June.

GM has said it expects up to 40 percent of the buyers for the Enclave could come from those now driving rival brands as it targets younger, more affluent customers.

Analysts have given the Enclave high marks for its interior styling, quiet ride and relative fuel efficiency as one of a growing number of car-based crossover utility vehicles.

Crossover vehicles offer the roomy cabin of an SUV with the handling of a passenger car and have been one of the few bright spots in a contracting U.S. auto market.

Golf star Tiger Woods, who has a five-year promotional deal with GM, will play a central role in marketing the Enclave and appeared with Wagoner for the vehicle's unveiling.

Wagoner, who declined to discuss specific future product plans, said the Enclave pointed to the direction of GM's plans for the brand which he said was profitable on a global basis.

"We can tailor the products much more against a market here in the U.S. which has fragmented quite a bit," Wagoner said. "And we can set up the distribution network so that the dealers can make money by putting Pontiac, Buick and GMC together."

[sirAQUAMAN64]

GM closes on sale of 51 percent interest in GMAC

Jamie LaReau  |   |  Automotive News / November 30, 2006 - 1:06 pm
 
DETROIT -- General Motors has completed the sale of a 51 percent interest in its financial services unit, GMAC Financial Services, to a consortium of investors led by Cerberus FIM Investors LLC.

The deal is expected to add $14 billion in net cash to GM's coffers over three years. The automaker will continue to control 49 percent of GMAC, previously known as General Motors Acceptance Corp.

"Successfully completing the GMAC transaction has been a key priority for the company and an important step to further support GM's turnaround," GM CEO Rick Wagoner said in a statement. "This transaction will result in a stronger GMAC, with enhanced access to funding at lower costs and greater opportunities for growth."

Wagoner's statement touched on a key point -- whether GMAC can garner a better credit rating by being distanced from GM.

The sale includes a $7.4 billion purchase price, a $2.7 billion cash dividend from GMAC and other transaction-related cash flows. GM invested $1.4 billion in cash and the Cerberus consortium invested $500 million in cash in preferred equity in GMAC.

Wagoner says GMAC will continue to provide the same service and products to dealers. Many GM dealers have been waiting for the completion of the GMAC sale because of the finance unit's poor credit rating.

Upon the sale's closing, many think the credit rating will increase, allowing GMAC to borrow -- and lend -- money at lower rates. Dealers hope for a decline in the interest on their floorplans -- the amount they pay in finance to carry the vehicles in their showrooms.

Some dealers say that if GMAC does not lower the rates on floorplans after completion of the sale, they will switch to another lender.

Standard & Poor's rating service upgraded its rating on GMAC on Monday, Nov. 27. Its current rating is BB+/B-1. S&P previously rated it BB/B-1.

[sirAQUAMAN64]

Kerkorian to cut GM stake to 4.95 percent

Reuters / November 30, 2006 - 12:00 pm UPDATED: 11/30/2006 1:09 P.M.
 
DETROIT -- Billionaire Kirk Kerkorian's Tracinda Corp. investment firm today said it had agreed to sell 14 million shares of General Motors, cutting his stake in the automaker to 4.95 percent from 7.4 percent.

In a U.S. regulatory filing, Tracinda said it had agreed to sell the shares in a private transaction for $28.75 a share.

GM shares fell by 2 percent to $28.93 in mid-day trade on the news.

Kerkorian's move comes just a week after he sold 14 million shares for $33 a share, cutting his stake from 9.9 percent to 7.4 percent.

Kerkorian's associate Jerry York resigned from GM's board in October in a dispute over board oversight and strategy triggered by the automaker's decision not to pursue an alliance with Renault-Nissan he had attempted to broker on Kerkorian's behalf.

[sirAQUAMAN64]

GMAC sale will not affect dealers' floorplan costs

Jamie LaReau  |   |  Automotive News / November 30, 2006 - 4:33 pm
 
DETROIT -- General Motors dealers will not see any reduction in the rates they pay to stock their showrooms with GM vehicles now that GM has sold 51 percent of its finance company.

GMAC has, though, been lowering retail rates on new and used cars, with another cut due Friday, Dec. 1, said Bill Muir, GMAC president, in an interview with Automotive News. On average, GMAC's retail rates will be 100 basis points, or 1 percentage point, lower on Dec. 1 compared with what they were Oct. 1, he said.

Muir said improved credit ratings allow GMAC to cut its rates to dealers: "Based on our spreads coming down and credit rating improving -- starting earlier in October, we began reducing our buy rates to the dealers so they could then offer that to their customers."

But he says the rates GMAC offers dealers to finance inventory, called floorplan loans, have remained competitive.

'We compete like any bank'

"All the wholesale business we have today we have competed for independent of GM, and we compete like any bank in the marketplace," Muir said. "Over the past five years, while our ratings and cost of finance have gone up, we have not raised our wholesale rates because we would lose business if we did."

GM sold the majority stake in GMAC to a consortium of investors led by Cerberus FIM Investors LLC. The deal is expected to add $14 billion in net cash to GM's coffers over three years. The automaker will continue to control 49 percent of GMAC, previously known as General Motors Acceptance Corp.

Aside from raising cash, GM wanted to improve GMAC's credit rating by de-linking it from GM.

Many GM dealers have complained that the cost they incur to finance the vehicles in their stores is hurting profits. Some dealers say they will no longer finance through GMAC if the rates don't drop upon the closing of the sale to Cerberus FIM Investors. Upon the closing, dealers expected GMAC's credit rating to improve, making it cheaper for GMAC to borrow money and thus lead to lower rates to lend money.

Bolstered credit ratings

GMAC's credit ratings have improved. Standard & Poor's on Monday raised its rating on GMAC to BB+, one level below the investment grade of BBB-. Moody's Investors Services and Fitch Ratings also rate GMAC at BB+. Dominion Bond Rating Service Limited is rating GMAC at BBB-.

"I've never met a dealer who wouldn't like lower rates," Muir said. "But the rates we charge today are competitive. With those rates, we get the wholesale business from about 80 percent of the dealers, so we've got to be doing something right." 

[sirAQUAMAN64]

http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20061207/AUTO01/612070320/1148
GM to cut back at 3 SUV plants

Production will slow at factories in Mexico, Texas and Wisconsin due to falling demand.

DETROIT -- General Motors Corp. will cut production in January at three plants that build large sport utility vehicles because demand has slowed, the automaker said Wednesday.

The factories in Mexico, Texas and Wisconsin make models including the Chevrolet Tahoe and GMC Yukon, Tom Wickham, a GM spokesman said. The plants will close for the first two weeks of January, then reopen Jan. 15 at lower production, he said.

"The SUVs are still selling reasonably well but the inventories were getting high," said David Healy, a Burnham Securities Inc. analyst who doesn't rate GM and owns some of its shares. "They're taking a realistic look at the future outlook for this segment."

GM is scaling back at the SUV plants as part of its 9.2 percent cut in North American production announced Dec. 1. Chief Executive Officer Rick Wagoner has said the Detroit-based company plans to increase revenue by attracting more buyers through a strategy that emphasizes lower prices and fewer incentives.

Profits from the large SUVS are part of Wagoner's plan to recover from a $10.6 billion loss last year. Tahoe, Yukon and Cadillac Escalade sales in the United States all rose in November from a year earlier. Through the 11th month of the year, sales fell 3.1 percent for the Yukon, rose 6.4 percent for the Tahoe and increased 26 percent for the Escalade.

Healy estimates GM gains about $10,000 in pretax profit from each Tahoe and Yukon sold.

"We are trying to manage inventory as close as possible to avoid having to use incentives," Wickham said. "We're still selling these models like gangbusters."

Hourly rates will fall

Production will fall to 50 vehicles an hour at the Janesville, Wis., and Arlington, Texas, plants. Current hourly output is 56.5 in Janesville and 56.6 in Arlington, Wickham said.

Production in Silao, Mexico, will drop to 50 vehicles an hour from 55, he said.

The number of jobs affected hasn't been determined yet, Wickham said.

"Despite what appears to be normal inventory levels, the cost of carrying inventory for dealers has risen significantly with the rise in interest rates," Merrill Lynch analyst John Murphy said in a report Wednesday about automakers' unsold cars and trucks. He rates GM shares a "sell."

GM had enough vehicles to last for 79 days at a normal sales rate, or 1,063,564 unsold cars and trucks, compared with a five-year average of a 74-day supply, he wrote.

The company's total U.S. sales of cars and light trucks fell 8.3 percent through November, more than triple the 2.5 percent decline for the industry, according to Autodata Corp. figures. Asian rivals led by Toyota Motor Corp. have been gaining sales and market share at the expense of GM, Ford Motor Co. and DaimlerChrysler AG's Chrysler unit.

GM plans to shutter 12 North American locations by 2008, and 34,400 U.S. union workers have agreed to take either early retirement or buyouts and leave by the end of this year.

Those reductions are part of a plan to reduce costs at an annual rate of $9 billion by the end of this year.

[MKII]

GM confirms Saturn Astra
Compact is almost identical to hot-selling Opel

December 7, 2006

Email this Print this By TOM WALSH

FREE PRESS BUSINESS WRITER




The 2008 Saturn Astra is expected to be available in late 2007. It will replace the Ion in GM's compact-car segment. (General Motors Corp.)
General Motors Corp. confirmed Thursday that its Saturn division will add the Astra compact car to its lineup in late 2007, replacing the Ion in that segment.

It will be nearly identical to the Opel Astra, which has won rave reviews in Europe and competed well head-to-head against the Honda Civic and Toyota Corolla.

Importing the 2008 Astra from Europe is the latest move by GM to boost the appeal of Saturn and expand its product range.

Since its launch in 1990, the Saturn brand has been known for its friendly dealership sales experience but has suffered from bland designs and a limited number of product offerings.

But things are looking up for Saturn, which may be GM's best opportunity to grab new customers and stabilize the company's U.S. market share, which has eroded from 50% in the 1970s to less than 25% today.

Of all GM brands, the only ones to post sales increases during the first 11 months of the year were Saturn and Hummer. Saturn sold 205,689 cars and trucks from January through November, up 3.6% from 198,512 a year earlier. November sales were 14% higher than the same month last year.

Early in 2006, Saturn added the Sky roadster to its lineup and in September launched the Aura midsize sedan. Both models are selling briskly without the need for sales incentives. Other new entries are the Outlook crossover and the Vue Green Line hybrid.

The Saturn Astra will be sold in three-door and five-door versions and will be unveiled publicly at the Chicago Auto Show in February.

http://www.freep.com/apps/pbcs.dll/article?AID=/20061207/NEWS99/61207055

[sirAQUAMAN64]

http://www.detroitnews.com/apps/pbcs.dll/article?AID=/20061211/AUTO01/612110331/1148
Rental cars get ritzy

GM loads up vehicles to turn renters into buyers
David Coates / The Detroit News

ROMULUS -- Rental car lots often seem like a dumping ground for stripped-down, characterless cars and trucks.

Mammoth airport lots packed with same-ol' sedan after same-ol' sedan conjure an image of vehicles good for little more than the trip from the airport to the hotel and back.

But at least one automaker wants to make its rental rides more memorable.

General Motors Corp. is loading up some of its best models with high-end options and features and pushing them into rental fleets. With more than 1.7 million rental cars on the roads last year, the automaker sees an opportunity to burnish its image among high-income travelers who rent cars and soon-to-be buyers driving loaners because their car was wrecked or is otherwise out of commission.

"A car rental is a much greater test drive than going to a dealer and getting to drive around the block," GM spokesman Rob Minton said. "It's in our own best interest to put our best foot forward."

Most automakers, including GM, are trying to reduce sales to daily rental fleets because they're less profitable. Also, having a lot of vehicles in rental lots can erode their image and cut into resale values.

But automakers will always sell some vehicles to rental car companies, and GM isn't the only one getting creative with its rental strategy.

Ford Motor Co. offers a special edition Mustang to Hertz customers, and DaimlerChrysler AG's Chrysler Group sells some of its newest models to rental companies to help acquaint drivers with its vehicle lineup.

But GM may be making the most concerted effort to transform its rental cars from suitcase holders to decked-out transporters.

'It helps create buzz'

In addition to attracting new customers, GM hopes to make more money by selling better-equipped, higher-priced cars to rental companies such as the Chevy HHR and the Pontiac G6.

More than 85,000 GM rental cars sold this year had sunroofs; none did just four years ago. The automaker is pushing well-optioned Chevy HHR wagons in California, where it's trying to pick up market share. And the automaker is now including heated seats, aluminum wheels, power windows and satellite radios in more rental cars.

Rental fleets "increase consumer exposure to newer vehicles," said Alexander Rosten, manager of market pricing and analysis for Edmunds.com. "It helps create buzz."

GM's strategy worked on New Yorker Max Heineman. A married, 31-year-old BlackBerry-toting businessman, Heineman is the kind of customer GM wants. The East Coaster is also the type more likely to buy a foreign car.

Heineman recently drove a Chevrolet Tahoe SUV while on business in Detroit. Now, he's planning to buy one. His rental experiences led him to rule out the Nissan Xterra because it felt too small.

"Having the cool cars as part of a fleet is a great idea," Heineman said last week after dropping off an Xterra at the Enterprise Rent-A-Car at Detroit Metropolitan Airport. "The best place for me to test-drive a car is when I travel."

GM has sold 647,000 cars and trucks to rental agencies so far this year and expects to finish the year with sales down about 10 percent from last year's tally of 719,000 units, Minton said.

Sales to rental agencies are a large portion of GM's 1 million overall fleet vehicle sales, which include cars and trucks sold to businesses for use by employees.

What might be good news for car renters hasn't gone over as well with rental companies, however. Most of the major car rental companies are faced with higher fleet costs and shrinking profits as automakers add more features and raise prices on their vehicles.

"They would rather not pay more," Minton said.

"But we need to make our rental car sales more profitable."

Many rental companies, faced with a competitive market that makes rate hikes to renters risky, are dealing with the added vehicle costs by ordering fewer vehicles and using the ones they have longer. Minton said some companies are now keeping vehicles for up to eight months rather than the average of four to six months.

"We do think people are influenced by the cars they rent," said Christy Conrad, a spokeswoman for Enterprise, the largest car rental firm in the United States.

"GM is asking that we consider adding extra options, and we're working with them on that."

What other firms are doing

Ford spokesman Jim Cain said rental cars have a role in Ford's marketing strategy, even as the automaker tries to reduce fleet sales and focus on building retail sales. The most obvious example is the Ford Shelby GT-H, a souped-up Mustang designed specifically for Hertz by Ford's Racing Performance Group and racing legend Carroll Shelby. Customers can rent the hot rod at select airport locations around the country.

Overall, though, Ford says it makes little sense to cater to the rental car industry, Cain said.

"The industry's problem has always been that it uses the rental market as a release valve to get rid of products that aren't selling," Cain said.

"Building our business around rental cars is not the strategy at Ford. We're focused entirely on the retail customer."

At Chrysler, some new models typically get shipped out to rental companies to help drivers become familiar with them. But Chrysler, too, is focused on paring fleet sales, spokesman Kevin McCormick said.

Toyota Motor Corp. is including more options in fleet vehicles, mainly as a way to keep resale values high, spokesman John McCandless said.

Rosten of Edmunds.com cited Chrysler's decision to push its popular Chrysler 300 sedan into rental fleets as a factor in creating excitement about the vehicle.

"If all you have are stripped-down versions of cars with crank windows," he said, "absolutely that can turn someone off the brand."

[sirAQUAMAN64]

Great news for Saturn faithful and workers, who may or may not be unionized? I think they were unionized late in the game (could be wrong).

GM to invest $225 million in Tennessee plant

Reuters / December 11, 2006 - 2:15 pm

DETROIT -- General Motors today said it plans to invest about $225 million to renovate its plant in Spring Hill, Tenn., indicating plans for future production at the plant.

The plant, which makes the Saturn Ion and Saturn Vue, will be idled for several months beginning in April 2007, when the automaker discontinues production of both those vehicles.

[articsteve]

GM halts sale of new crossovers to fix small glitch

DETROIT -- An engine vibration that is felt if water freezes on engine mounts has prompted General Motors to tell dealers not to sell the new GMC Acadia and Saturn Outlook crossovers.

GM said about 550 of the crossovers have been delivered to dealers, according to the Lansing State Journal in Lansing, Mich.

Water freezing on the engine mounts hinders their ability to absorb engine vibrations. GM stressed that the problem is not a safety issue.

GM is sending a service bulletin to GMC and Saturn dealers today to advise them that they need to add drainage holes to the engine mounts before selling the new vehicles.

The problem can be fixed at the dealership, and GM expects dealers will be able to resume selling the Acadia and Outlook within a few days, the spokeswoman told the newspaper.

So the dealer is going to get out his drill and poke random holes in the mounts.  Must be some skinny motor mounts     My, my, my, those should last a long time.      You would think that the mounts would be liquid filled to absorb vibration.  Oops! wrong company. 

[mrthompson]

March 2007:  GM Issues recall for rusting motor mounts 

[safristi]

I lurve Rustic Motor Mouths......

[sirAQUAMAN64]

GM slices $1,000 from per-vehicle incentive cost

Lindsay Chappell  |   |  Automotive News / January 8, 2007 - 1:00 am
 
Factory incentives dropped an average of 2.6 percent in 2006, as General Motors lopped nearly $1,000 from its per-vehicle average.

GM's incentive cost per vehicle in December was its lowest since April 2002, falling from $3,335 per vehicle sold in December 2005 to $2,393 in December 2006. The data were compiled by Edmunds.com, which provides auto buying advice to consumers.

GM's reduction helped bring the average incentives on all vehicles to $2,469 for all of 2006, down from $2,536 for 2005.

But overall incentive levels were rising again as the year closed, according to Edmunds.

The average vehicle sold in December carried a $2,376 incentive, up 3 percent from November, Edmunds estimates. That reflects higher incentives on import-brand vehicles, including Toyota and Honda, as well as a rise at Ford Motor Co. and the Chrysler group.

Nissan North America Inc. saw the industry's biggest 2006 increase, up more than 30 percent over 2005. American Honda Motor Co. posted the industry's second-largest percentage gain, up nearly 12 percent for the year from a low level. But incentives on the average Detroit 3 vehicle sold in December fell about $19 from November, according to Edmunds.

Edmunds includes in incentives consumer rebates, dealer cash and consumer savings from subsidized loans and leases.

[safristi]

One analyst in the Motor Industry  has stated that the Big three are in a SWAMPLAND...............GM is just dragging it's muddy ass out of the mud...FORD is stuck in the middle of the Bayou up to its arse in alligators,,and Chrysler is wandering drunkenlly into the morass......................'bout sums it up eh!! Uncle Boudrois Crawfish the third..............

[sirAQUAMAN64]

Lutz: GM to cut fleet sales by 100,000 in 2007

Reuters / January 9, 2007 - 1:00 pm
 
DETROIT (Reuters) -- General Motors will reduce its sales to rental companies by 100,000 units in 2007 in an effort to boost the resale value of its vehicles, GM product chief Bob Lutz said on Tuesday.

The automaker, which cut low-margin rental fleet sales by about 75,000 units in 2006, has been reducing rental fleet sales as part of its strategy to improve profitability.

"We are going to reduce daily rentals by an additional 100,000 in 2007," Lutz said, speaking to reporters on the sidelines of the North American International Auto Show.

"We need to get residual value up to Japanese levels," Lutz said, referring to the higher resale value of vehicles at competitors such as Toyota Motor Corp.

GM, which lost $10.6 billion in 2005, is in the middle of a broad restructuring that includes the slashing of more than 34,000 jobs and the closing of 12 plants. As part of its turnaround effort, the automaker has developed a strategy of more transparent pricing and lower incentives.

Lutz also said lowering incentives and reducing fleet sales will further pressure U.S. market share, which GM has been steadily losing to Asian rivals.

But he said the moves are necessary to reverse "damaging" sales practices from the last few years. "If in 2006 we had continued with the damaging practices of sales from 2003 and 2004...our market share would have been up 2 percent," Lutz said. "But that's how we damaged our residual value."

GM, which up to 2006 relied heavily on big discounts to sell its vehicles, was the only U.S. automaker to see a drop in its average incentive per vehicle last year.

As the automaker stayed away from incentives, it also saw its U.S. sales fall nearly 9 percent and its market share slip 1.7 percentage points to 24.5 percent.

"A lot of the share problem over the last 18 months will continue into '07...as we fundamentally change from being a desperation merchandiser to a company that sells its vehicles at true value," Lutz said.

Lutz said perception about car quality "lags" but GM's improved quality was a message that was getting through, if slowly. GM on Sunday swept the 2007 North American Car and Truck of the Year awards at the Detroit Show.

Lutz also said he expects "more understanding" from the new Congress on healthcare and trade issues but not on GM's concerns about the government's proposal to raise Corporate Average Fuel Economy (CAFE) standards.

"I have a feeling its going to be very, very hard to convince a Democrat Congress that raising CAFE requirements is not the right way to eliminate dependence on foreign oil," he said.

The U.S. CAFE standard, which applies only to an average across the fleet of vehicles, is currently 27.5 miles per gallon for cars and 20.7 miles per gallon for trucks or SUVs weighing less than 8,500 pounds.

U.S. automakers have said raising those standards would represent an unfair burden on them as they rely on larger vehicles for profitable sales while Asian rivals focus on smaller cars.

Lutz, a long-time critic of CAFE rules, compared the attempt to force carmakers to sell smaller vehicles to "fighting the nation's obesity problem by forcing clothing manufacturers to sell garments only in small sizes."  

[safristi]

Dang IT those weekend BargOOn FUN rentals are GONNA SKY_SOLSTICE ROCKET UP UP and away...as are weekly rates...........

[sirAQUAMAN64]

Holden Commodore SS set to become Pontiac G8

Rick Kranz  |   |  Automotive News / January 12, 2007 - 8:53 am
 
General Motors is expected to expand Pontiac's U.S. product line with a rebadged rear-drive Australian sedan.

The Holden Commodore VE SS V will be called the Pontiac G8 and priced around $25,000, according to the Herald Sun in Melbourne, Australia.

While GM Vice Chairman Bob Lutz did not confirm the plan, he told the newspaper, "It's such a logical thing to do. The volume range is 30,000 to 50,000. It depends on how we price it." He refused to say when shipments might begin.

Lutz said details would be revealed next month.

"We have yet to make an official announcement," Lutz said. "Much more will be revealed at the Chicago show."

This will be GM's second try at selling a rebadged Holden model as a Pontiac in the United States. The Holden Monaro was marketed as the Pontiac GTO for the 2004 to 2006 model years. Sales did not live up to expectations.

[Mitlov]

A Commodore-turned-Pontiac could be a great car.  Honestly, the GTO's biggest failing was its bland styling.  It looked like a Pontiac Sunfire on steroids.  I think a more blunt-nosed, somewhat-retro look would be a better choice this time around.

I do think "Grand Prix" might be a better name than "G8," but I'm not a big fan of alphanumeric naming in general.  It's not the end of the world.  But would the Solstice have quite the marketing appeal if it was called the "Pontiac G3"?  I doubt it.

When is the Chicago show?

[sirAQUAMAN64]

When is the Chicago show?

Normally overlaps the Toronto show, so sometime mid Feb to 1st week March. New York usually April.

[safristi]

"P3"................................................. times a night might be a Hit with the ovr 70 set................