Who will end up owning Opel is turning more and more into a brawl along party lines. Officially, the seller is GM. The final arbiter will be the German government because they foot the bill to the tune of billions. Trouble is, the German government is divided. It is made up from a coalition between the center-right CDU and the center-left SPD. Both run the country. Both are on each other’s throats. Both are in a bitter fight for votes in the September national elections. Several states are also up for grabs. It’s a “super election year.” Both have their favorites. So who will it be? (Read More…)
The AP reports that GM design chief Ed Welburn is heading a group studying name and logo changes for the General. What, like “Precision Motors“? “Changing the background of the familiar square blue-and-white GM logo has been discussed,” according to the AP’s anonymous sources, but nothing has been decided yet. The same anonymous sources do indicate, however, that “the company is looking into changing the background color of its corporate logo from blue to green in an effort to show consumers that it is leaner and greener, more focused on fuel efficiency and better able to make quick decisions.” And remind consumers, no doubt, that GM is fully committed to covering up fundamental problems with quick, cosmetic fixes. Now more than ever.
Passing committee is just the first of many steps on the way to a complete episode of Schoolhouse Rocks. And the way Automotive News [sub] tells it, the latest iteration of the Great Dealer Restoration may just face a rocky path. The substance of H.R. 2743 has been attached to a 2010 financial services spending bill that passed the House Appropriations Committee. The problem is that this amendment represents a policy change, in that it would cut funding to the automakers if they refuse to reinstate dealers as ordered. Such policy changes are not technically supposed to be attached to spending bills. No worries though. According to AN’s paraphrase of Rep Steven LaTourette (R-OH),
“Some lawmakers will ask the House Rules Committee early next week to issue a rule to protect the bill from so-called ‘point of order’ challenges that would spike the dealer provision”
And that’s why I’m so particularly fond of Porsches.
China’s passenger-vehicle sales skyrocketed a frightening 48 percent in June, the most stratospheric ascent since February 2006. According to Bloomberg, this “helped the nation extend its lead over the U.S. as the world’s largest auto market this year.” The car-nage in Bloomberg’s own words: (Read More…)
The Standard Of The World (so to speak) may have found its long-awaited flagship in China, reports Car and Driver. Dubbed the SLS, this stretched (four inches longer than STS) Sigma platform beast was developed for the Chinese market by Shanghai GM. Previously available only in China and Middle Eastern markets, the SLS is a great excuse for GM to not develop a new flagship. C&D does note that a “reskin” and an LS V8 will make the model distinct to the US market. Meanwhile, the return to bad habits continues across Cadillac’s product planning.
They don’t build them like they used to. Really. I have yet to come across an car as solid as an old Mercedes, say pre-1998, before the Chrysler – DaimlerBenz AG “merger of equals.” If I had to choose one car to represent the pinnacle of—and benchmark for—Mercedes’ build quality, it would be the W116 S-Class. Hence my decision to restore a barn-found 1975 280S.
GM has filed a request in bankruptcy court to cancel the franchise agreements of 38 dealers who rejected wind-down agreements. In doing so, GM has identified, for the first time, dealers which it plans to cut. Read the full pleading here in PDF form for a complete breakdown (starting on page 32) of the dealers on the chopping block.
Businessweek reports that GM’s Korean Daewoo Automotive Technology (GM-DAT) partner is in as much trouble as the Detroit-based mothership. GM-DAT, which develops much of GM’s small-car capability, has seen its sales fall nearly in half in June (particularly in Russia and Korea), prompting some to question whether the firm will emerge from a mounting liquidity crunch. Last year GM-DAT exported 900,000 vehicles and one million knock-down kits last year, accounting for a quarter of GM’s global sales. But as the firm’s Chevy and Buick brands have sagged, so to has GM-DAT’s income. The Korean unit is seeking loans from the Korean Development Bank, which owns 28 percent of the firm. KDB reportedly will only back GM-DAT if it becomes a full-line vehicle developer, rather than a small-car specialist. This would threaten GM’s Holden subsidiary in Australia, which has put the kibosh on such talks. Meanwhile, we’re hearing rumblings that the GM-DAT liquidity crisis is being caused by GM underpaying for its imports.
The inmates are running the asylum today while our fearless leader takes the day off to celebrate the BIG FIVE-OH. We all wish Robert a very HAPPY BIRTHDAY!
Before: early pictures of the just-confirmed-for-America Honda Crosstour testing in Britain, via AutoExpress. Early in development, the Crosstour is still just a slightly beefed-up AWD wagon.
To many peoples’ surprise, SAAB was amongst the brands that made the cut when federal bankruptcy judge Robert Gerber cleaved GM in two. Saab was owned by GM Canada. It’s now part of New GM—which is busy negotiating with The Koenigsegg Group to offload the Swedish automaker. Very little has come out of the recent negotiations re: the sale and/or the European Investment Bank (EIB) loan that Saab, GM and Koeningsegg view as a prerequisite for the deal to go down. Meanwhile, last week, SAAB CEO Jan Åke Jonsson declared “we need a cash infusion so we can boost production.” Förlåt?
I live in Montreal. Currently I have an old, unreliable sport bike as a recreational summer vehicle, doing most of my commuting via a mediocre public transit system. I’m considering buying a newish car for work and play. I’m 25, single, full-time employed at a moderately-paying job, and going to be studying part-time to boot. I love heel-toeing just about anything I get my mitts on, and am looking for driving pleasure and not outright speed. Spaciousness is not a priority for my current lifestyle (but is appreciated), but reliability and cost-efficiency are. A 2006-ish Miata seemed to be a great candidate, but while searching the classifieds I noticed that there’s a whole slew of RX-8’s available with around 20k miles for similar money as the Miata.
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