GM is close to having a fix for the Volt battery that had a tendency to go up in flames after a crash. Meanwhile in Washington, senators are getting the grill ready. (Read More…)
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Chris writes:
Dear Sajeev,
Love the website and love your reading your column. My question is I am looking to get a minivan within the next 6 months to a year. I am only looking to spend around 8 grand on one. I am leaning heavily towards Chrysler’s vans, and found some really great deals on older ones with low miles. But then I read your article about how it’s not always good to go with older, low mile automobiles. So would I be better to get say, a 2002 model Town and Country, with a little over 100 hundred thousand miles? Or should I not even bother with Chrysler at all? I was leaning towards a Windstar as well, but then there’s that whole rear axle breaking thing, and I quite enjoy living. In your personal opinion what is the best minivan for my budget.
The accounts are empty, GM keeps saying no, the reconstruction administrator is about to pull the plug on Saab. Unfazed, The Church of The True Saab goes from clumsy spinning to simply telling lies. First, they turned “a bank in China” into “the Bank of China.” As Chinacartimes quips, this “could be anything from the smallest local city bank to a national level bank.”
Now, Saabsunited spins another yarn to keep the faithful from losing faith and face:
“Pang Da says that they are not out of the deal, on the contrary, they continue talks.” (Read More…)
The car business is tuning into a mutual admiration society. Volkswagen wants to be like Toyota, Toyota wants to learn from Nissan. Now, GM wants to learn from Volkswagen. GM’s Vice Chairman Stephen Girsky says that the new benchmark for GM is Volkswagen. (Read More…)
The Church of The True Saab reports rather breathlessly that a YADTFSS (yet another deal to finally save Saab) has been found. The organ that prides itself to have knowledge of insider information (which it usually never releases) relies on Sweden’s TTELA, which says (translation courtesy Church of The True Saab : ) (Read More…)
Tweet! Tweet! Tweet! If you have enough followers on Twitter and the like, Chevrolet might give you a free 2012 Sonic. Not for keeps. But for 3 days. It’s the new long-term tester of the 140 character age.
According to Automotive News [sub], General Motors has hired Klout, a company that ranks a person’s “social influence.” Well, social networking influence. In the past, people with high Klout scores received free review copies of software, deodorant, or coffee. Now, they get a car. (Read More…)
In the comments section of yesterday’s post on the ongoing Chevy Volt fire investigation, I noted that GM might
retrofit Volts with crash protection that can maintain battery integrity in all crash conditions… Mary Barra has said that GM is
“continuing to work with NHTSA to investigate additional actions to reduce or eliminate the potential of a post-crash electrical fire.”
I think some kind of update on the battery integrity front is inevitable, but we shall see…
Sure enough, today Reuters is running an interview with GM CEO Dan Akerson, who says that European deliveries of Opel-branded Volts (called Ampera) would be delayed pending NHTSA’s investigation, and that maybe, just possibly, the Volt’s battery might have to be redesigned. Says Akerson:
We want to assure the safety of our customers, of our buyers, and so we’re just going to take a time out, if you will, in terms of redesigning the battery possibly
Unfortunately, Akerson’s mangled syntax makes it tough to know if GM is really going to redesign the Volt’s battery, or what the “time out” in question means. He does tell the AP [via The WSJ [sub]] that a recall or buyback are options as well. Though redesigning the Volt’s battery could be expensive and devastating for sales, GM’s current post-crash safety protocol is incredibly human resources-intensive, and likely very costly as well. And the fact that GM is even considering redesigning the Volt for safety a year after its release is going to create a huge sales and marketing challenge anyway. Volt production edged down by 199 units in November, and now GM’s sales boss Don Johnson tells the Detroit News that the Volt will miss its 10,000 unit 2011 sales goal. At this point, GM may just want to take a mulligan on the Volt’s first year, redesign the battery, and relaunch the thing.
TTAC has received the following protocol, developed by GM in the wake of the June Volt fire at a NHTSA facility in Wisconsin, from a GM source and has confirmed its legitimacy with a second GM source. Though the procedure may be refined based on the findings of NHTSA’s latest round of tests, it gives a good picture of what GM currently does to ensure the safety of Volt driver and passengers as well as rescue workers, towing company workers and salvage yards. And, I have to say, it puts some of my fears about this safety scare to rest. It hadn’t occurred to me that GM’s Onstar system could provide opportunities to respond to crashes in real time, and apparently the system provides a wide variety of data with which GM’s “corporate SWAT team” can tailor its response to any Volt crash event. Hit the jump for the full procedure.
TTAC has long held that GM should have initially sold the Volt as a Cadillac, putting its newest, most high-tech drivetrain in a luxury car that could support its high list price. Of course the bailout made a CadiVolt a touch too elitist, which led to GM canceling production plans for its Converj Concept coupe. But with plans back on to sell a Converj-inspired ELR coupe, a new question arises: can Cadillac really charge significantly more than the Volt’s $40k-ish MSRP without doing more than simply rebodying the Volt in Cadillac’s Art & Science styling? Automotive News [sub]’s Rick Kranz reckons Cadillac could do more, and thinks that the ELR could end up with rear-wheel drive.
Reuters reporter Ben Klayman, part of their stellar Detroit team, assisted by Christiaan Hetzner in Frankfurt, did a great piece about the grim options that await Steve Girsky and his merry band of hatchet men when they go over to Europe to whip Opel in shape. It could actually be the end of Opel instead of a glorious future, the report says.
“Options for restructuring Opel range from bad to worse and could include a form of bankruptcy, analysts and bankers say. Costs will have to be slashed further, steps that could include politically charged job cuts and plant closures in Europe. Girsky, who was named chairman of Opel’s supervisory board on Monday, could look for new partners for Opel to share costs, and even return to the idea of selling the brand once it has been repaired, analysts said.”
Adam Jonas, analyst at Morgan Stanley, Girsky’s former employer, says it best:
“You can’t say the words ‘all options are on the table, we rule out nothing’ unless there’s something fundamentally changing.” (Read More…)
Opel workers and managers are deeply worried: It’s not just cuts that are coming. GM is sending a team of feared slashers. Says the Wall Street Journal:
“Vice Chairman Steve Girsky, GM’s second-highest-ranking executive, will become chairman of the Opel supervisory board. Tim Lee, president of GM’s international operations, and financial chief Daniel Ammann also will join the Opel board, the company said.”
Supposedly, GM was surprised and appalled that the European business hit GM’s bottom line with an operative loss of $292 million in the third quarter, despite increased sales. I am not surprised at all. I have always warned that restructuring Opel and cutting jobs is an expensive exercise. And those costs were mostly delayed into the third quarter.
Now Girsky and his team of handpicked hatchet men are coming. (Read More…)
Quite ironically, foreign carmakers, namely GM and now French PSA, help China kick-start its ailing export machine.
Everybody had been hysterical about cheap Chinese cars that would soon flood the market, but it didn’t happen. Quite the opposite is happening: Joint venture brands, led by General Motors, are grabbing a larger and larger share of the Chinese market. And foreigners are gearing up to get China a chunk of the world market. (Read More…)
I caught hell from a number of TTAC’s Best and Brightest five days ago, when I blogged about the Chevrolet Volt fire at a NHTSA facility but failed to initially note GM’s response. At the time, GM’s Greg Martin said
GM has safety procedures for handling the Volt and its battery after an accident. Had those been followed, there wouldn’t have been a fire.
At the time, a number of readers accused me of bias for not including Martin’s response at first. Eventually I conceded that this was some worthwhile perspective for the story, but I cautioned that it only represented the opinion of one GM employee. Whether or not NHTSA actually followed those procedures remained an open question… until now. Automotive News [sub] is reporting that NHTSA couldn’t possibly have followed those procedures, nor indeed could anyone else, for the simple reason that GM failed to share them with anybody. So not only is the NHTSA fire being blamed on the fact that government regulators were not given the necessary safety procedures, but it turns out that rescue workers, salvage yards, towing companies and the like were not taught how to discharge the Volt’s battery either. In other words, this NHTSA crash was an important eye-opener for the Volt team.
One of the great mysteries to many inside the auto industry is why is GM’s stock price so low? Though the company had a weak third quarter, its stock price has been stuck well below its IPO price for much of the last year, despite a return to profitability. Though GM faces challenges, few inside the auto industry understand why its stock price remains so low. One theory: the government’s mere continued presence as a major stockholder creates uncertainty around the company. If this is the case, it creates something of a vicious cycle: the lower the stock price, the less likely the government is to sell its shares, leaving it lingering with no exit strategy, in turn driving the stock lower. Though that’s not likely to be the whole story, one thing is certain: the government has been forced to increase its loss estimate for the GM bailout. The Detroit News reports that the Treasury’s losses on GM are now estimated at $23.6b, up from $14.4b. And with an election looming, it seems likely that the White House will sell within the next six months. But will the government’s desire to protect itself politically trade off with GM’s PR? After all, whatever the Treasury’s final loss is, that number will be pinned to GM as a symbol of what it owes the American people. On the other hand, with most analysts insisting that GM stock is undervalued, another year of government ownership could convince investors to bid up the price, greatly reducing GM’s public debt. Too bad electoral politics will probably prevent that from happening….
Say what you want about Saab fans, the guys have some dedication. At a time when most have finally accepted the fact that Saab is at the end of the line, Saab’s hard-core “dead-enders” are taking up their social media arms to rescue their beloved brand. After all they have a perfect opportunity: after months of wading through a quagmire, uncertain whether to support Victor Muller, Vladimir Antonov, or one of Saab’s Chinese suitors, all Saab fans can now rally against their old enemy, GM. Long blamed for Saab’s decline despite the fact that the brand’s peak sales came under its ownership, GM has long been the bête noire for Saabistas. And with GM now taking the wheel of Saab’s fate, Saab’s rabid fans have taken over GM’s Facebook wall, posting images of their favorite Saabs and demanding The General “let Saab go.” Will it be enough to convince GM to go against its carefully-crafted Chinese relationships and interests by giving Saab carte blanche to ship its technology wherever its new Chinese masters want? Don’t count on it. But for the moment GM has to sit through the online equivalent of an “Occupy” protest.
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