GM Tidbits

[Mitlov]

Where GM has 7 brands, new Number One, Toyota, has just three.

What about Toyota's interests in Subaru and Isuzu?

[Snowman]

Here we go again.    I agree that something must be done but nothing is going to happen anytime soon. 

Fortune writer calls for death of Buick, Pontiac, HUMMER, GMC and Saab
http://www.autoblog.com/2007/04/26/fortune-writer-calls-for-death-of-buick-pontiac-hummer-gmc-an/

Now that GM is officially Number Two, many Monday morning quarterbacks are popping up to "help" the general right the ship. Count Alex Taylor III, Fortune's senior writer, among them. In an interesting article, Taylor outlines reasons why GM should cut loose the anchors of Buick, Pontiac, HUMMER, GMC and Saab in order to move forward and prosper. Reckoning that GM is too bloated with brands and capacity that were fine 50 years ago, Fortune says it's time to move on.

Where GM has 7 brands, new Number One, Toyota, has just three. Toyota, Lexus and Scion seem to be good enough to cover most buyers' needs, argues Taylor. But GM maintains that cutting brands would be cutting buyers since there are too many loyalists in the fold. The argument is that people want choice and more brands allows more specific targeting of the audience. But Fortune argues that the cost of that level of specification is too high. Taylor proposes keeping Chevy as the Toyota-equivalent volume brand, expanding Cadillac's offerings to go head-to-head with Lexus, and keeping Saturn to compete with Scion in the import-minded segment.

GMC can go completely commercial, but the author sees no redeeming qualities in HUMMER, Pontiac, Buick, or Saab (he might want to check out Buick's prospects in other regions like China before he shrugs it off so easily). It seems like a pretty logical plan that just makes too much sense in an industry fueled by passion and huge egos. It miight make good business sense on the surface, but these are emotional decisions, too. Nobody likes seeing a brand die, especially ones with such heritage. Chrysler has had to do it a lot over the years and GM has had to do it recently with Oldsmobile, but killing off a brand does come with considerable expense, as well. Buying out dealers, losing brand loyalists, and shuffling/reducing your workforce will hit the bottom line hard, too. .

Click through the Read link for Taylor's argument in full.
http://money.cnn.com/2007/04/25/news/companies/pluggedin_taylor_deadbrands.fortune/index.htm?source=yahoo_quote

Sound like some of the posts I have read in here…..criticism without experience or facts.

[UmroAyyar]

GM's surviving brands have strong history and loyalty associated with them. Saab seems to be a bit lost, Saturn is reviving with Opel injection, Pontiac/Chevy have almost identical offerings. Buick's going strong elsewhere.

Mitlov, Toyota has very limited stake(less than 10% in Subaru and Isuzu, a lot less than GM had in these companies at one time. Didn't make these GM's brands, nor in Toyota's case.

[Snowman]

GM's surviving brands have strong history and loyalty associated with them. Saab seems to be a bit lost, Saturn is reviving with Opel injection, Pontiac/Chevy have almost identical offerings. Buick's going strong elsewhere.

Mitlov, Toyota has very limited stake(less than 10% in Subaru and Isuzu, a lot less than GM had in these companies at one time. Didn't make these GM's brands, nor in Toyota's case.

Toyota owns 20% of Subaru.

[UmroAyyar]

GM owned 20% of FHI, Toyota bought 8.7% of FHI.

[Snowman]

GM owned 20% of FHI, Toyota bought 8.7% of FHI.

  http://www.consumeraffairs.com/news04/2005/gm_toyota_saab.html I don't understand?

[UmroAyyar]

GM owned 20% of FHI, Toyota bought 8.7% of FHI.

  http://www.consumeraffairs.com/news04/2005/gm_toyota_saab.html I don't understand?

GM held 20% stake in FHI, GM sold its share, Toyota bought 8.7% of FHI in October 2005, it couldn't buy more because Toyota held 45% share in overall Japanese automotive market. Since, that law has been changed, Toyota can acquire all of Subaru or a controlling stake in it, doesn't seem to be happening at the moment.
They're sharing technologies with each other, Hybrid systems, batteries, small cars, plant capacity etc.

http://news.windingroad.com/earningsfinancials/subaru-now-open-to-toyota-takeover/

[Snowman]

GM owned 20% of FHI, Toyota bought 8.7% of FHI.

  http://www.consumeraffairs.com/news04/2005/gm_toyota_saab.html I don't understand?

GM held 20% stake in FHI, GM sold its share, Toyota bought 8.7% of FHI in October 2005, it couldn't buy more because Toyota held 45% share in overall Japanese automotive market. Since, that law has been changed, Toyota can acquire all of Subaru or a controlling stake in it, doesn't seem to be happening at the moment.
They're sharing technologies with each other, Hybrid systems, batteries, small cars, plant capacity etc.

http://news.windingroad.com/earningsfinancials/subaru-now-open-to-toyota-takeover/

Okay...thanks.

[MKII]

UAW Local: GM To Delay Production Of Revamped Midsize Sedan

DOW JONES NEWSWIRES
April 26, 2007 2:51 p.m.


By John D. Stoll OF DOW JONES NEWSWIRES

DETROIT (Dow Jones)--General Motors Corp. (GM) has informed the United Auto Workers union that the auto maker delayed production plans for a Chevrolet Malibu slated to be built in Fairfax, Kansas, in the near future. It is the second product program GM has told the UAW it is delaying in recent days.

In an informational flyer distributed to UAW employees in Lordstown, Ohio, union officials told workers they had been given "news from the corporation that they have suspended two new vehicle programs for North America." Local 1112 is one of two union locals representing more than 4,000 workers in Lordstown, where GM builds smaller cars, including the Chevrolet Cobalt.

On Tuesday, Dow Jones Newswires reported GM had told the UAW that it is halting development of its so-called Delta vehicle program. Lordstown builds Delta-based cars and officials there have been negotiating a new labor agreement that would allow GM to cut labor costs at the plant in return for being awarded the next round of Delta cars, slated for production in 2009.

The flyer posted on the Local 1112 site mentions the Delta program suspension, and said that GM has "also delayed the Epsilon program which was under construction at the Fairfax, Kansas, assembly plant where they currently build the Chevy Malibu."

A GM spokesman and a spokesman for the UAW couldn't immediately be reached for comment.

While the threat to delay the Delta small car is seen as potential political posturing by GM in an effort to win UAW cooperation, delaying Epsilon production plans could hurt GM in the near term, as it aims to revive its position in the U.S. market. The Malibu, which is slated to be launched as a redesigned vehicle in the near future, is aimed at better competing with Toyota Motor Corp.'s (TM) Camry sedan.

Meantime, a UAW official at the Lordstown facility said talks on the agreement - dubbed a Competitive Operating Agreement - have been cut off by high-level UAW officials in Detroit. The UAW and GM had been negotiating cost cuts, such as the outsourcing of several jobs, up until Wednesday, this official said.

[sirAQUAMAN64]

Corvette pumps up performance, luxury and price for '08

Richard Truett  |  Automotive News / April 27, 2007 - 8:52 am
 
For 2008, the Chevrolet Corvette is getting a boost in performance, more luxury features and, most likely, a higher price.

The changes are coming three years after the introduction of the current sixth-generation body style. They are aimed at keeping the Corvette ahead of the performance-car pack amid stiffening competition, says John Rydzewski, the Corvette's assistant chief engineer.

General Motors made the announcement Friday at the Corvette plant in Bowling Green, Ky.

The new standard engine for the Corvette is a 6.2-liter aluminum push-rod V-8 called the LS3. It's rated at 430 hp and replaces the LS2, a 6.0-liter that made 400 hp.

When ordered with the optional two-mode exhaust system, horsepower rises to 436. The superhigh-performance Corvette Z06 returns for 2008, still boasting 505 hp.

The two-mode exhaust system has a valve that opens when the engine is accelerating hard. The valve reduces the pressure of the exhaust flowing through the system.
 

Despite the bump in power, Corvette's fuel economy of 18 mpg city and 28 highway is not affected, says Rydzewski. Emissions are lower, moving the new engine into a cleaner EPA certification category, he says.

The 2008 Corvette reaches 60 mph in 4.3 seconds and has a top speed of 190 mph, GM says.

New Corvette engines are somewhat rare.

With the exception of the original Blue Flame six-cylinder engine, few Corvette motors have had shorter production runs than the LS2.

Says Rydzewski: "We were working on the next level of emission upgrades for the engine. And at the same time, the work we were doing would allow us to go one notch up on the competition.

"It's the right time for us to put this engine into production. We have a good product, and we want to get it out to the customers."

Other changes include upgrades to the manual and automatic transmissions. GM says the six-speed manual offers more positive gear changes, while the paddle-shifted automatic has new hardware and a new controller that delivers faster shifts when the driver presses the shift buttons on the steering wheel.

New features that were optional in 2007 and will be standard include OnStar with navigation, XM radio and mirrors that dim automatically. The interior also has been made more luxurious with bright trim on the center console and door sills.

Production of the 2008 Corvette begins in late July with sales scheduled to start in late August. Chevrolet has not announced prices. The 2007 Corvette Coupe starts at $44,995 including delivery charges. 

[sirAQUAMAN64]

New ideas wanted

GM opens up to a fresh way of doing things

Sharon Terlep / The Detroit News

Texan Ross Perot, during his brief stint on General Motors Corp.'s board of directors, once described the automaker as "isolated and insulated" from the American driving public.

Nearly two decades later, amid a massive overhaul at the world's largest automaker, signs are starting to emerge that GM is shedding that top-down, out-of-touch style of management.

Jolted into action by unprecedented market share declines and billions of dollars in losses, GM is taking a more fluid and open approach to doing business in an industry it once ruled.

Twenty-something hipsters in the company are getting called on to help make critical decisions.

Design teams have new freedom to whip up vehicles with no advance approval from the top.

And, in a first for GM, the public could have final say in picking a new vehicle to be sold around the world.

"The company that I hired into no longer exists -- which is a good thing," said John Manoogian, design director for Cadillac, who started his GM career 30 years ago in the now-defunct Oldsmobile division. "There's a new sense of where we are and what we have to go to. We have senior managers saying, 'You guys show us what you can do.' "

With its supremacy over the world auto industry ending as foreign rivals get stronger and international markets grow in influence, GM's situation may have gotten dire enough to spur some actual change in that way of thinking.

Some of this is evident in the attitude of upper management toward the lower rungs. People are more able to give suggestions and question company strategy.

On a public level, GM is reaching out more for input, even putting a decision on producting a concept vehicle up to a vote.

"This is a team game, and to get the team functioning at its most efficient level, you have to have all the players playing to their strengths," GM Vice Chairman Bob Lutz said this month before unveiling a set of new concepts for mini-cars. At a loss for which vehicle should debut at the New York Auto Show, GM decided to show all three and then let the public vote on which should see production.

"If that means a great idea is born in one spot and develops into reality somewhere else," Lutz said. "So be it."

Shift emerges to public

The change has been gradual. Some say it started nearly a decade ago, when GM adopted a team approach to vehicle development that has people from various departments coming together to make important decisions. That was a shift from when managers would send orders down the ranks.

For several years now, particularly since Lutz took on the role of product czar in 2001, designers at GM have talked about feeling more valued and empowered.

But it's been only recently that the shift in thinking has begun to trickle down into GM's public face -- its products, marketing and ads.

"There's a lot less Detroit tunnel vision than there used to be at GM," said David Healy, a Burnham Securities auto analyst. "You can see it in the new models that are coming out. And that's what's important."

Designers set free

Case in point is a new set of vehicles set to debut next year at the Detroit Auto Show.

The ideas for the vehicles -- which GM won't discuss-- emerged from a small team of designers over at Cadillac.

Historically, designers get directions to make vehicles based on a market need or hole in GM's product lineup. In this case, the team branched out and came up with some clay models of vehicles they thought GM should build.

Soon after the models were done, the designers got word that Lutz and CEO Rick Wagoner were coming down to the Warren design center to see them.

"We brought them out on the patio, and they just said, 'Hey, let's do this,' " Manoogian said. "For me that was the epiphany -- when the light bulb went on that we were doing things differently."

Mike Jackson, vice president of advertizing and marketing, said the new culture has infused energy throughout GM.

"We're particularly proud of our new products," he said. "There's a lot of confidence here."

[sirAQUAMAN64]

Sources: GM offers cut rates to lower-credit buyers

Reuters / April 27, 2007 - 12:00 pm /
 
DETROIT (Reuters) -- General Motors is offering lower-interest financing to customers with weaker credit ratings through this weekend in an effort to boost sales for April, sources familiar with the sales plan said today.

GM will offer reduced interest rates to customers whose credit is assessed at two of its lower rating levels on all brands except Saab, the sources said.

The program, aimed at offering lower monthly payments to a wider pool of potential customers, is intended to boost GM's U.S. showroom sales at the end of a month that industry executives have described as weak.

[sirAQUAMAN64]

 
GM halts work at 2 plants because of UAW disagreement

Jamie LaReau and David Barkholz  |  Automotive News / April 27, 2007 - 1:25 pm /

DETROIT -- General Motors has halted renovations of its Lordstown, Ohio, and Fairfax, Kan., assembly plants after negotiations with local UAW officials stalled, sources say.

GM had been preparing both plants for production of next-generation vehicles. In turn, GM has asked Lordstown employees to work 10-hour shifts without overtime. The automaker also wants to subcontract some nonunion jobs, according to a local UAW Web site.

Lordstown currently builds the Chevrolet Cobalt and Pontiac G5, plus the Pontiac Pursuit for Canada and the Pontiac G4 for Mexico. All vehicles share the Delta small-car platform.

At Fairfax, GM was preparing for production of its next-generation mid-sized cars, which share the front-wheel-drive Epsilon 2 platform. Fairfax currently assembles the Chevrolet Malibu and Saturn Aura.

Automotive News first reported the negotiations April 16. At both plants, local unions had been negotiating with GM since mid-February on work rules, subcontracting janitorial jobs and other money-saving concessions.

"They were making a lot of progress," said a GM source. "Last week we thought we were pretty close to getting a local agreement. But the national union stepped in and said, 'No, no way.' We thought: 'Why?' "

No guarantees?

This month local union leaders told Automotive News that they know they must make concessions. But they are demanding firm guarantees that GM will produce those next-generation vehicles in their plants.

In Fairfax, UAW Local 31 President Jeff Manning said negotiations broke off two days before GM's April 20 deadline for a new agreement.

Manning said he is most concerned about GM's demand to outsource some jobs. The automaker wants to use nonunion workers to unload parts from trucks and haul them to the assembly plant.

GM also wants to let outside contractors assemble door panels, wheels and some engine components. That would put 500 of the plant's 2,500 UAW jobs at risk, Manning said.

Negotiations broke down when GM told the UAW that it had halted development of assembly-line tooling for the next-generation vehicles.

Restart negotiations

Manning said he hopes to restart negotiations after a meeting in Detroit next week with UAW international representatives.

GM officials thought they were progressing in negotiations before national UAW leaders called a halt.

"We were at the point where both sides were pretty happy with what we had, but suddenly it stops," said the GM source. "So we said, 'OK, if you guys are going to do that … then we're going to make a statement on our end."

The union tells a different story. At Lordstown, Local 1714's Web site criticized GM's "quiet decision" to postpone development of its next-generation Delta vehicles.

"It looked like that project was destined for the Lordstown plant," the Web site message said. "But when GM brass in Detroit shelved that project, international leadership of the United Autoworkers Union suspended local contract talks."

GM spokesman Dan Flores declined to comment on the sticking points saying, “Management and local union leadership at both plants are continuing to work hard to put their respective plants in a position to attract a future product. I can’t comment on the status of the current discussions. We’re all focused on taking both plants forward.” 

[sirAQUAMAN64]

GM CEO takes 25 percent pay cut to support turnaround

Automotive News / April 27, 2007 - 3:00 pm /
 
DETROIT (Reuters) -- General Motors CEO Rick Wagoner has voluntarily cut a quarter of his base salary to support the automaker's turnaround plans, GM said in a filing today.

As of March 1, Wagoner's base salary was $1.65 million, down from $2.2 million in January 2006, GM said in a filing with the Securities and Exchange Commission.

GM CFO Fritz Henderson and product chief Bob Lutz also took pay cuts of 15 percent each, bringing their base salaries to $1.32 million each.

The world's largest automaker, which has lost more than $12 billion in the last two years, is in the middle of a sweeping restructuring that includes slashing more than 34,000 jobs and closing 12 plants.

[safristi]

Symbolic...would be Better if he tookan average wage of a GM worker fer a year..........FAT_chance...............

[airbalancer]

how much do they get in stock options?

[safristi]

why would he want a herd of cattle...............

[MKII]

Cobalt SS Supercharged will not be offered anymore
SS models will be renamed "Sport"

changes in option packaging gives the Cobalt more standard features

Deletions

(21U) Laser Blue Metallic exterior color
(56U) Sunburst Orange Metallic exterior color
LTZ Sedan model
SS Supercharged Coupe model

New Features

(37U) Imperial Blue Metallic exterior color
(39U) Blue Flash Metallic exterior color
(87U) Slate Metallic exterior color
(JL4) StabiliTrak stability control system
(NW9) Traction control
(ASD) Head-curtain side-impact air bag delete for Fleet and Government order types
(UE0) OnStar delete for Fleet and Government order types

Changes

1AM37 is now called Sport Coupe and the equipment group code is now 1SP
1AM69 is now called Sport Sedan and the equipment group code is now 1SP
(TV5) Sport Package is now called Performance Appearance Package and is an available option on 2LT Coupe and 2LT Sedan. The 3LT Coupe and 3LT Sedan equipment groups are deleted.
(ASF) Head-curtain side-impact air bags are now standard on all models
(US8) AM/FM stereo with CD player and MP3 playback is now standard on all models
(U2K) XM Satellite Radio is now standard on all models
Instrument panel uppers are now Ebony on all models
LT Sedan with neutral interior now has woodgrain trim 


http://eogld.ecomm.gm.com/NASApp/dom...D=5143&type=0#

Click on new for 2008.

[sirAQUAMAN64]

Cobalt SS Supercharged will not be offered anymore
SS models will be renamed "Sport"

changes in option packaging gives the Cobalt more standard features

Deletions

(21U) Laser Blue Metallic exterior color
(56U) Sunburst Orange Metallic exterior color
LTZ Sedan model
SS Supercharged Coupe model

New Features

(37U) Imperial Blue Metallic exterior color
(39U) Blue Flash Metallic exterior color
(87U) Slate Metallic exterior color
(JL4) StabiliTrak stability control system
(NW9) Traction control
(ASD) Head-curtain side-impact air bag delete for Fleet and Government order types
(UE0) OnStar delete for Fleet and Government order types

Changes

1AM37 is now called Sport Coupe and the equipment group code is now 1SP
1AM69 is now called Sport Sedan and the equipment group code is now 1SP
(TV5) Sport Package is now called Performance Appearance Package and is an available option on 2LT Coupe and 2LT Sedan. The 3LT Coupe and 3LT Sedan equipment groups are deleted.
(ASF) Head-curtain side-impact air bags are now standard on all models
(US8) AM/FM stereo with CD player and MP3 playback is now standard on all models
(U2K) XM Satellite Radio is now standard on all models
Instrument panel uppers are now Ebony on all models
LT Sedan with neutral interior now has woodgrain trim 


http://eogld.ecomm.gm.com/NASApp/dom...D=5143&type=0#

Click on new for 2008.

WTF is that about??! No SS Supercharged, and the SS rebadged 'Sport' has the base ECOTEC... not even the 173hp motor! Fack them.

[Stuff]

Looks like Pontiac really is the performance side of this car now. 

Cobalt SS Supercharged will not be offered anymore
SS models will be renamed "Sport"

changes in option packaging gives the Cobalt more standard features

Deletions

(21U) Laser Blue Metallic exterior color
(56U) Sunburst Orange Metallic exterior color
LTZ Sedan model
SS Supercharged Coupe model

New Features

(37U) Imperial Blue Metallic exterior color
(39U) Blue Flash Metallic exterior color
(87U) Slate Metallic exterior color
(JL4) StabiliTrak stability control system
(NW9) Traction control
(ASD) Head-curtain side-impact air bag delete for Fleet and Government order types
(UE0) OnStar delete for Fleet and Government order types

Changes

1AM37 is now called Sport Coupe and the equipment group code is now 1SP
1AM69 is now called Sport Sedan and the equipment group code is now 1SP
(TV5) Sport Package is now called Performance Appearance Package and is an available option on 2LT Coupe and 2LT Sedan. The 3LT Coupe and 3LT Sedan equipment groups are deleted.
(ASF) Head-curtain side-impact air bags are now standard on all models
(US8) AM/FM stereo with CD player and MP3 playback is now standard on all models
(U2K) XM Satellite Radio is now standard on all models
Instrument panel uppers are now Ebony on all models
LT Sedan with neutral interior now has woodgrain trim 


http://eogld.ecomm.gm.com/NASApp/dom...D=5143&type=0#

Click on new for 2008.