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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.
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?
TTAC commentator Juniperbug writes:
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.
GM is so screwed. We are so screwed. On the occasion of Old GM’s judicial death sentence, Steve Rattner offered an instant analysis of what New GM needs to do to survive: eliminate the perception gap. “There’s often a lag between perception and reality,” the head of the Presidential Task Force on Automobiles (PTFOA) told jobbing journos. Automotive News [sub] puts it this way: “General Motors must convince consumers that the quality of its vehicles has improved to stop a decline in U.S. market share and survive after bankruptcy, a senior Obama administration official said. Steve Rattner, the head of the Treasury Department’s auto task force, said the quality of GM vehicles has improved, citing the Chevrolet Malibu as an example. But he added that consumers have to be made aware.”
Monday morning at Carmax auctions. I see a 1992 Mazda B2200 truck with only 44,000 original miles. What the . . . ? Yep, checked the Autocheck and the Carfax. It had 44,000 miles. Interior. Immaculate. Not even a stain. Five-speed? A snick-snick work of (old) art that seems ready for action. The selling price? $1900 plus $105 auction fee. Not really that bad. The old Ranger and its Mazda sibling seem to be the unofficial vehicles of North Georgia. If I lived in Deliverance country, I could see even keeping it. Today’s buys were a 1997 Cadillac Deville for $1455 (including auction fee) and a ratty Subaru Loyale that was purely for speculative purposes for $120. The engine turns but doesn’t fire. Based on the history I’m thinking it’s either old gas or a fuel pump.
Since Pontiac won’t be part of “new” GM, the brand becomes another distressed asset that will be sold off by the bankruptcy court just like the closed plants. Perhaps New GM can convince the bankruptcy court that selling off the Pontiac brand is not in the restructured company’s best interest since it would end up competing with them, but the same can be said of their other assets like factories and machinery that competitors may buy. Someone will buy the Pontiac brand and associated IP for nearly bupkis. Hell, the licensing rights for diecast GTOs and Firebirds have value. Maybe Maisto or Mattel will buy the Pontiac brand.
Tips to avoid/survive deer accidents:
1) Be attentive, be aware. Scan the sides of the road, not just straight ahead (use your peripheral vision).
2. When you see deer (whether standing or moving), warning signs or simply suspect you may be driving through their habitat, slow down.
3) Use your high-beams (dim where appropriate).
4) DO NOT SWERVE to avoid a collision with a deer. A sudden loss of vehicle control is far more dangerous than animal impact. Brake and hold the wheel straight.
5) Do not stop in the middle of the road post-Bambicide. Move your vehicle off the road and out of [further] harm’s way as soon as possible.
“This is really just the beginning of all the final tuning. We are at the 50 percent point. Fundamentally, we’ve got everything directionally correct, but now we’ve got all the tuning yet to do.” Andrew Farah, Chief Engineer, Chevrolet Volt. [thanks to Justin Berkowitz for the link]
Click here for a pdf of GM’s latest incentive programs. To give you an idea of how complicated this company’s pricing has become, note that the company providing the information, AIS rebates, is an independent third party. They make a good part of their living interpreting the GM FUD for the bankrupt automaker’s dealers. Huh.
The Maywood, California City Council on Wednesday dumped the Australian company in charge of the city’s red light camera program. Since 2004, Redflex Traffic Systems has had the right to issue tickets at the intersection of Slauson and Alamo. The council voted 3-2 not to renew the five-year agreement, against the wishes of city staff who proposed new “cost neutral” contract terms. “(The) city shall be obligated to pay the cumulative balance invoiced by Redflex, in accordance with terms set forth above, to the extent of gross cash received by the city from automated red light violations,” the proposed new contract language stated. Tying the vendor’s compensation to the amount of cash received violates a state law mandating flat-rate contracts for photo enforcement systems.
Bloomberg reports on Toyota’s pickle vis-à-vis Fremont, California-based NUMMI. New GM is leaving its NUMMI ownership share in the hands of Old GM. Thus, Old GM and Toyota together own NUMMI in a 50/50 joint venture. Old GM will be selling off its moribund assets over a period of a year or more as the long slow process of liquidating the discards and paying creditors pennies on the dollar plays out. (Old GM is looking like an economic stimulus program for a small band of lawyers, accountants and realtors.)
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