After months of speculation about GM’s re-entry into the subprime lending market, The General has announced a deal in which it will purchase the lender AmeriCredit for $3.5b. Founded in 1992, and managing assets worth $10b, AmeriCredit has been pursued by GM for the last month, according to GM CFO Chris Liddell in the WSJ [sub]. GM paid AmeriCredit stockholders $24.50 per share for a controlling interest in the firm, a 24 percent premium over its $19.70 closing price yesterday. Still, GM insists that acquiring AmeriCredit will have “a minimal impact” on its balance sheet, although no explanation is given as to how. $3.5b is at least ten percent of GM’s cash pile at this point, and it’s not clear if that qualifies it as a “minimal impact” or if GM is using some kind of financial instrument to purchase the firm. AmeriCredit says it will “expand its offerings” to support GM, likely in the area of lease deals, but it will also continue to offer loans to non-GM-brand car deals.

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Car & Driver’s endearingly awkward Editor-in-Chief Eddie Alterman took to the interwebs today, with a “viral-style” video imploring enthusiasts to “save the manuals.” And though Alterman can’t help but sell the faux-sincerity, the message is brain-hurtingly mangled by his attempt to be the Old Spice Guy of the car world.
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The good news? GM is so desperate to move Corvettes, it’s decided to give you $3k back or 0% financing on every single new ‘vette, including the world-beating ZR1. The bad news? You have to build the engine yourself. Also, this won’t exactly help GM climb off its throne as the reigning king of incentive spending. But hey, if $106k for a Corvette was sounding a little ridiculous, at least the price point has effectively fallen to $103k. If you’ve been on the fence over that three thousand dollars, it’s time to adjust your spreadsheet accordingly. [ZR1 incentives explained after the jump]

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Bloomberg reports that GM has already pulled off one of the ballsiest IPO moves ever, by asking banks bidding to underwrite its IPO to use fees to subsidize the purchase of GM vehicles by its employees. According to the report, a GM document sent to bidding banks solicited

ideas as to how we can use the IPO to reposition GM and its vehicles within the investment community including your firm’s willingness to reinvest any portion of any underwriting fees into the purchase of GM vehicles for your employees and/or company use.

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In hopes of convincing consumers that buying a battery-electric car will not be a financial disaster for them, GM is announcing an eight-year, 100k mile transferable warranty for its Volt battery. According to GM’s release, Volt batteries have undergone

more than 1 million miles and 4 million hours of validation testing of Volt battery packs since 2007, as well as each pack’s nine modules and 288 cells. The development, validation and test teams have met thousands of specifications and validated each of the Volt battery’s components.

Tests include short circuit, corrosion, dust, impact, water submersion, crush and penetration, and extreme temperature swings combined with aggressive drive cycles, also known as  “Shake, Bake and Roll.”

GM does not, however, specify a minimum-performance range for the battery, saying only that it can run on battery power for “up to the first 40 miles.” That makes it tough to understand what kind of defect or level of performance would deserve a warranty repair or replacement, which is really the key consideration. GM’s claim that this

is the automotive industry’s longest, most comprehensive battery warranty for an electric vehicle

is technically true, but it is also the same warranty period enjoyed by Toyota’s Prius hybrid. Full release after the jump.

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Kia may be dumping its generally bland model names for the increasingly favored “alphabet soup” paradigm, but Land Rover has gone the opposite direction, naming its “LRX” concept the Range Rover Evoque at its official unveiling [presser here]. Ironic, considering that the alphanumeric crowd is forever insisting that its unintelligible gobbledygook conveys an upmarket image. How very provoq-ative…

According to BusinessWeek‘s David Welch, GM’s New York market share has slipped below ten percent for the first time, prompting The General to consider a 5th Avenue GM “salon” showcasing the company’s products. Now, the arguments against the idea are too easy: spending government money on some of the world’s most expensive real estate isn’t great PR-wise. Besides, isn’t GM trying to emphasize the individuality of its brands, and break down the monolithic image of GM as the all-seeing, all-rebadging automaker? Wouldn’t a GM “salon” go against the alleged independence of, say, Cadillac? On the other hand, GM does finally have some good products, and can’t afford further erosion in market share in America’s affluent coastal cities. Would it really hurt to showcase them in a prominent setting? It’s a debate that’s surely racking the RenCen at the moment, so why not weigh in before a decision is made. Is this a plain bad idea? Should a variation of the idea move forward, possibly highlighting individual brands in a more targeted manner? Or does GM need a world-class flagship retail outlet in order to manifest itself as a world-class automaker?

The Fisker Karma hybrid sedan may be debuting in about two days and counting, but what does a debut mean? According to the Detroit News, Fisker spokesfolks are already saying that

the “first few customers” will get Karma vehicles by the end of the year, with full production to start in the first three months of 2011.

In other words, we’re afew days away from a Potemkin launch, in order to keep the Department of Energy from looking like a misinformation peddler. The DOE said the Karma would be on sale this summer way back when it lent Fisker $530m. Whoops!

It’s been written at least a few times here at TTAC that crossovers are the methadone of SUV addiction, and Ford is proving the point, as it prepares to launch its 2011 Explorer. Once one of the most popular SUVs in America, the Explorer is going to a unibody chassis, and the reactions to teaser images on Facebook show that America is still struggling with its SUV addiction. Facebook reactions [in gallery below] show a mixed reaction to the Explorer’s new crossover-inspired look, including unfavorable comparisons to such “cute utes” as the Honda CR-V. Ford is reacting with a video [above] which describes the Explorer as a “21st Century SUV” that offers “do anything, go anywhere” capability. Which is funny, considering that the original Explorer was never exceptional at either off-road or on-road capability. But hey, who ever said that addiction was a logical choice?

Since the start of the World Cup, chief sponsor Hyundai has already miffed the Catholics, and one of its ads accidentally caused British viewers to miss England’s first World Cup goal. So, to get things back on track they’ve apparently decided to sponsor… a giant vuvuzela? “Annoying” and “mildly offensive” were probably not the brand values Hyundai was looking to promote when they decided to sponsor the event. But hey, at least they’re not throwing competitors in jail.

The Wall Street Journal [sub] asked several Chrysler dealers about the newest hotness being developed in Auburn Hills, and came away with the tales of a “man van” that Chrysler hopes will lend the Dodge Caravan some masculine swagger. According to the WSJ, this re-man-ification of the minivan includes:

a slightly sportier look on the outside, possibly finished off with a black-and-gray interior trimmed with hot-colored stitching on the seats and steering wheel

Oh yes, and some “edgy” ads laden with tired cliches of sexual politics. In short, they’re sending the 2008 “Caravan R/T” concept into production. But why?

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After one year of ownership we would expect EV residual values to be above the segment average expressed in terms of pound values. But, if the battery is owned rather than leased, and lacks the appropriate extended warranty, the value of the typical EV will then fall dramatically until the vehicle is five years old, at which point the car will have a trade value little more than 10 per cent of the list price

So says Andy Carroll, managing director of the British car-buying bible, Glass’s Guide. He tells BusinessCar that Nissan and other firms launching EVs in Britain should take out the battery cost and lease it to customers with minimum monthly performance clauses. This, he says, would dispel concerns, drive sales, and transform the resale picture. It’s also what Project Better Place is doing, albeit in a complete regional package with battery-swap stations and charging infrastructure.

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People really viewed the Peapod as an incredible case study in how you could – in modern times – bring forward a completely new idea in the automotive sector in the space of just several months. It was pretty phenomenal

Remember the PeaPod? It was “the new wave car for the younger set” masterminded by former Chrysler “Chief Innovation Officer” Peter Arnell, during the chaotic “try anything” years of Cerberus ownership. It was supposed to start going on sale last October, but the division (formerly known as GEM) was spun out of new Chrysler during bankruptcy and hasn’t been heard from since. Surprised?

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With Cadillac’s sales remaining stubbornly slack, the GM luxury rband is looking for every opportunity to win back customers. Image-conscious fashion victims have the CTS Coupe to coo over, but what about the Consumer Reports-reading luxury buyers who want a well-managed, hassle-free customer experience? Cadillac is trying to make inroads with these buyers as well, introducing a 4 year, 50,000 mile maintenance program for all 2011 model-year vehicles [full presser here]. The program includes

scheduled oil changes, tire rotations, replacement of engine and cabin air filters and a multi-point vehicle inspection

Sorry CTS-V drivers, but that doesn’t include free tires. And as much as we might like to laud Cadillac’s decision to back up its products, this move doesn’t really get them ahead of the game. Instead, Cadillac is only just keeping pace with the likes of BMW, which has offered a four-year, 50k mile scheduled maintenance program for some time. So now Cadillac can say that buyers who switch from BMW won’t be surprised by first-year maintenance costs, eliminating one possible frustration on the customer experience level. Still, this is hardly a perception-shifting, Hyundai Assurance-level gimmick for the luxury game. [Update: The BMW program does not include tire rotations. Standard Of The World after all?]

With apologies to Robert Burns, the best laid schemes o’ mice an’ marketers gang aft agley. That’s certainly what’s happened to MINI’s plan to race a Porsche 911. Porsche said “no thanks” to MINI’s challenge, which is exactly what MINI was looking for. Then Hyundai had to come in and force MINI out of its underdog status, making it defend itself against a cheaper competitor. And the search for a meaningful race-as-marketing-stunt continues…