8 years to pay off a car? A report by the Wall Street Journal claims that in Q4 of 2012, the average car loan stretched out to 65 months, or just over 5 years. Loan terms were being stretched out over increasingly longer terms too, with credit firm Experian reporting that nearly 1 in 5 car loans had terms between 73 and 84 months long, with some stretching for as long as 97 months.
GM will resume advertising on Facebook, nearly a year after it ceased running ads on the social network.
Over at Jalopnik, Patrick George discusses the recent trademark filing by General Motors for the Chevelle name. After a brief discussion regarding trademark procedure, George makes a logical conclusion; the Chevelle name may end up attached to something less than worthy, similar to how Dodge’s C-segment car ended up with the Dart moniker. But there is a potential ray of sunshine here for enthusiasts.
March was the 5th straight month of a SAAR above 15 million vehicles. Industry analysts have explained the strength of the market in a number of ways. The need to replace older vehicles is one (new car sales were hit hard during the recession as consumers held on to their vehicles for longer. This also caused used car prices to skyrocket, something TTAC has been documenting), while others have cited increasing fleet demand, and the desire to replace vehicles damaged in Hurricane Sandy.
But one factor that is just starting to get attention outside of TTAC is sub-prime financing. Sub-prime lending, which involves giving high-interest loans to customers with poor credit scores, is driving the SAAR in a big way, by letting buyers with poor credit purchase new cars. In turn, the sub-prime bubble is being driven by Wall Street, whose clients cannot get enough of financial instruments backed by sub-prime auto loans.
The multi-billion dollar endeavor of developing a new car has effectively ended the one-off specialty car that many enthusiasts still clamor for and wronglyassert is feasible in this era. Supermodel-thin margins, a saturation of brands and vehicles and an ultra-competitive global marketplace have killed the previous formula for developing a production car, which was mostly a one-off solution to local road conditions and buyer tastes
The necessity of scale is a double-edged sword; if the bean counters deem a product too costly and it may proceed as a watered down version of the original concept. If a new architecture or platform is approved, then we are practically assured multiple variants spun off that platform.
As it turns out, GM nearly took the cheapskate approach to developing the Cadillac ATS. But at the 11th hour, the General decided to change course, and enthusiasts will be all the better for it.
GM announced that prices of their new 1500-series trucks would remain flat, while the new 5.3L V8 is estimated to beat Ford’s F-150 Ecoboost in fuel economy and towing capacity.
Having just picked up a Chrysler 300C, I would have told you that it’s the last American luxury car on sale today. Now I’m not so sure. Despite foisting on us the dreadfully mediocre XTS,Cadillac has had an ace up its sleeve the whole time.
Facing tough German competition, the people at General Motors come up with a large-displacement supercharged contender that outpowers but also out-weighs the BMW-and-Benz-powered entries. The look of their new model is controversial, but we’re told that it has to be that way due to existing platform constraints. And, of course, they’ll need a massive cash injection from the United States Government to make the whole thing happen, and they’ll get it, even though the aforementioned government wants them to build something completely different.
Wait a minute. Did you think I was talking about the CTS-V? Pas du tout! Set the wayback machine for the big band era, and let’s hear a story about how General Motors (allegedly) sabotaged the strategic plans of the United States in order to further their own economic interests.
Good news for performance fans from The General; a new twin-turbo V6 will debut on the next generation CTS and XTS, good for 420 horsepower and 430 lb-ft of torque.
The W-Body Chevrolet Impala, so beloved by the horribly biased, anti-Detroit, anti-GM staff and readership of TTAC, will live on for one more year, as a fleet vehicle dubbed the “Impala Limited”.
GM announced a $250 million dollar investment for the CAMI plant in Ingersoll, Ontaro. CAMI is the main production site for the Chevrolet Equinox and GMC Terrain (also known as the Theta crossovers), two of GM’s best selling models, and the investment comes amid uncertainty over the fate of CAMI itself.
After part 1: Breach Of Trust, and part 2: Lack of Strategy, now the long-awaited final part.
In his book Car Guys vs. Bean Counters, GM’s best-known executive, Bob Lutz, describes the task facing newly-appointed CEO Dan Akerson:
“Akerson has inherited a company headed for success… Akerson does not have to “fix the business.” His role is not to run the operations but to set the overall direction, inspire the troops, and make sure the product development momentum continues… Akerson’s largest contribution could be to become the respected and liked spokesman, the personification of General Motors. Making GM more open, more human, more accessible and more likable is the last, great unfinished task.”
Lutz knows of what he speaks: after all, he was long the likable, humanizing public face of GM’s upper management. More importantly, he established the revamped product development system that has produced GM’s most competitive lineup in the modern era. However, Lutz knew and knows cars and the car business. Akerson knows how the telephone works. (Read More…)
Upon receipt of a multi-billion dollar loan from the Canadian government, General Motors signed a “Vitality Commitment”, essentially a covenant in the loan agreement between GM and Canada’s government, which guaranteed that a certain amount of GM’s North American production would remain in Canada. That number is widely reported as being 16 percent, while page F-69 of GM’s IPO filings outlines that the covenant is valid until GM repays its loan commitments or until December 31, 2016, whichever comes later.
While Oshawa has widely regarded as one of GM’s best plants in terms of producing high-quality vehicles, the future of GM’s Oshawa plant is looking increasingly bleak.
In the first part of this series, we looked at Dan Akerson’s problematic relationship with the truth, focusing on the gap between his stated intentions and his actions. Akerson is hardly the only example of an auto executive to indulge in personal myth-building or ego-driven dissembling. Analysts, employees and shareholders can forgive all kinds of personal shortcomings in a chief executive so long as he has a clear plan for success and the proven ability to get results. Unfortunately for GM, Dan Akerson brings nothing to the table in this regard that might outweigh his negatives.
The depth of Akerson’s strategic failure is nothing short of stunning, encompassing almost every element of GM’s global footprint.
Author’s note: When the government rescued General Motors from certain disaster, it was a chance at a fresh start. A chance to not just slow GM’s half-century of market share loss, but truly return America’s largest automaker to its place of pride. With debts erased, unions tamed and coffers restocked by the government, all things should have been possible. And yet, first under Ed Whitacre and now Dan Akerson, General Motors has consistently failed to live up to its true potential. Only new leadership can give the people of General Motors, to say nothing of the American people, an automaker they can be truly proud of.
Like every individual, every organization wants to present its best face to the world; it’s why the PR business exists, and why your 14-year-old daughter spends hours manicuring her Facebook presence. But when the desire to be seen in a positive light becomes too strong, individuals and organizations often end up hurting themselves as much as helping. Put in simple terms: if you misrepresent who and what you are too many times, you lose credibility. This seems to be what is happening to GM’s CEO, Dan Akerson. (Read More…)
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