When Lansing Senator Debbie Stabenow sent her most recent routine letter to U.S. Trade Representative Ron Kirk, complaining that the nasty Chinese want to get their greedy hands on the super-secret electric vehicle know-how of Ford and GM, both manufacturers protested. Against the assistance from Ms. Stabenow. Ford and GM said that “they have no plans to build electric vehicles in China.” At least that’s how the Detroit News heard it. Either the DetN was misinformed. Or GM and Ford quickly changed their minds. Or they just wanted Debbie off their backs. Ford and GM both want to make EVs in China. (Read More…)

Mid sized pickups allegedly were left for dead. Automotive News’ Product Editor Rick Kranz even accused Honda of “abandoning” its Ridgeline pickup. Now, the unloved segment is being resuscitated by – General Motors. And the UAW. (Read More…)

Conventional wisdom and Senator Stabenow have it that the wily Chinese are after precious Americans secrets of how to make new energy cars. Never mind that Ford and GM loudly deny that they have any current plans to build or sell electric vehicles in China. That appears at least half true in the case of GM. GM doesn’t have plans. Its plans are made in China. GM completely outsourced the development of electric vehicles – along with other future technologies – to China. (Read More…)

Reuters reports:

Opel, part of GM Europe, has long sought to free itself of the constraints imposed by GM, which aims to keep it as a regional brand.

“One proposal would be to give Opel shares to SAIC,” [Opel union boss] Klaus Franz told Reuters, adding this move would allow GM to receive in return the 1 percent in the SAIC joint venture it is missing for a 50 percent stake.

“GM has never accepted that it owns 49 percent in the joint venture with SAIC and that the Chinese partners have 51 percent,” Franz said.

The joint venture builds Chevy, Buick and Cadillac vehicles in China.

“It would be a win-win situation for all and it would be a good way for us to enter the Chinese market,” Franz said.

Franz has long been a provocateur, but this one probably takes the cake. After all, SAIC and Opel together would almost be a better GM than GM… product development and booming China/India sales with none of the North American legacy costs. Don’t count on this happening, but it is an interesting sign of Opel’s renewed desire for independence from Mother GM.

At the height of “bailout fever,” after TARP had been instituted but before the automakers had been completely bailed out, one argument that we heard a lot of from Detroit’s defenders was “how can you begrudge the manufacturing base a few billion when speculators at the banks are receiving far more support?” At the time, the argument seemed to me like a convenient way to shift attention away from Detroit’s failures and undercut the argument that consumers, not a credit crunch, were responsible for killing off GM and Chrysler… but at least then it still had some validity. Fast forward to today, and history has stripped it of all relevance, as it turns out the banks will likely be picking up the automakers’ bailout tab.

(Read More…)

The United Auto Workers and the Detroit automakers have been locked in negotiations for months now, as both sides seek to redefine their relationship in the post-bailout era. And though all sides have stressed the importance of avoiding intractable disputes in an alleged new spirit of cooperation, it seems that the prospects of a quick, painless conclusion to negotiations remains elusive. The UAW’s contracts with Chrysler and GM both blew past their deadlines at midnight last night, and Ford, the only manufacturer at theoretical risk of a strike, extended negotiations earlier this week. TTAC has not covered these negotiations in much depth for the simple reason that little information leaks out of them. But with contracts expiring and optimistic rhetoric crashing on the rocks of reality, the frustration is clearly starting to boil over. And who is surprised that Fiat-Chrysler CEO Sergio Marchionne is the first to let his frustration show?

(Read More…)

It is a regular occurrence. Every few months, the Lansing Senator Debbie Stabenow rushes to the aid of GM and Ford and defends them against the nasty Chinese. The problem is: GM and Ford don’t want or need her help. (Read More…)

Dow Jones cites a report in Der Spiegel Magazine which claims that GM Vice Chairman for Corporate Strategy Steve Girsky

has made enquiries at BMW to start discussions on “far-reaching joint projects.”

According to Dow Jones, the Spiegel article does not cite any specific source for its information, and TTAC has not yet been able to find the original article online. According to Dow Jones, GM is

 primarily interesting in gasoline and diesel engines… General Motors is at an advanced stage in developing a fuel cell and could offer co-operation in that field… The technology behind GM’s Opel Ampera electric vehicle would also be of interest to BMW, according to the report.

GM has not yet responded to TTAC’s request for comment. A similar rumor was floated by Handelsblatt around this time last year, but BMW was quick to quash it. Are things different this time, or is GM still struggling with unrequited desire? We’ll let you know as soon as possible…

Our Chinese sales oracle has spoken, and it says that sales of cars in China are good. August sales numbers released by General Motors today indicate that China has left the doldrums behind and is revving up to its old double digit self. Sales of GM China and its Chinese joint ventures set an August sales record and rose 13.4 percent (compared to August 2010) to 205,885 units. (Read More…)

For a while, GM has been trying to get back the crucial 1 percent share in the GM/SAIC China joint venture. That share had been sold when things were dire. Books were written about it, and Ed provided an executive summary. Now, China Daily heard from SAIC. “Mei wen ti!” (No problem.) SAIC is ready to hand back the share —- if GM finds a way that allows Shanghai GM’s revenue to be included in SAIC’s books. Uh-oh! (Read More…)

GM will go it alone in Japan. From November on, GM will “switch to direct sales for all its Japanese-market models, some of which are now sold by a Mitsui & Co. unit,” reports  The Nikkei [sub]. Mitsui Bussan Automotive began handling GM vehicles in 1992 and focused mainly on large SUVs, such as the Cadillac Escalade, Chevy Avalanche, Traverse, Silverado and HHR. (Read More…)

GM China always had a comfortable lead over Volkswagen in China – at least on paper. More than half of GM China’s volume comes from small delivery vans, made by a three-way joint venture with SAIC and Wuling, in which GM held 34 percent. This share had been recently raised to 44 percent. The joint venture agreement allows GM to claim 100 percent of the small cars as theirs. “Whatever turns them on” (or Chinese word to that effect) say the other JV partners who happily count the cars again in their annual reports. There is one big problem with that. The “breadvan segment” (so called because the cars looks like loafs on wheels) has been shrinking and is ruining GM’s otherwise good Chinese numbers.  Now, GM can’t take it anymore, and is using a familiar tactic: “GM is sacrificing profit margins to maintain market share in China, cutting prices of low-cost minivans by as much as 15 percent to offset slowing sales in the world’s largest vehicle market,” Bloomberg reports.
(Read More…)

This Cadillac ad is the latest in a series of seriously good spots for the CTS-V, which started with this “Competition” ad from last Summer. But then, as I found in a short drive, the CTS-V writes its own ad copy, 556 HP at a time. And this latest spot has one minor truth-related omission: though GM rightly claims that Magneride Magnetorheological suspension was “perfected” in the CTS-V, it actually debuted in the less ad-dollar-worthy 2002 STS. And there’s no mention of the fact that the technology was developed by Delphi, then a technically independent firm, and the technology has since been sold to Beijing West Industries. Of course, these details aren’t exactly worthy of the limited time available in a 60-second spot, but it’s the truth, dammit. “Just sayin…”

GM spent $4.26 billion for advertising last year, globally. 67 percent, or $2.85 billion were spent in  the U.S.  A good chunk of this budget, around $3 billion, are up for review. Meaning: The agencies that handle it must come up with concepts and defend theirs against concepts of other agencies that want to handle the funds. Please note that this has nothing to do with creative ideas, or not in the true sense of it. We are talking media buying here, buying time on network, space in magazines, clicks on Google. It should be as interesting as deciding whether your accounting work will be done by Peat Marwick or by KPMG. (Loud howls of protest from the media agencies, who are as proud of the cleverness of their media plans as the CPA firms are pleased with their creative accounting.)

The adworld is abuzz about the move, $3 billion possibly changing to new handlers can shake up carefully cultivated relationships. The question everybody is asking: “Why?” (Read More…)

Toyota closed the last chapters of the book on NUMMI, wrote a check for $6 million, and put the book to where it will collect the dust of history. According to Reuters, Toyota reached a $6 million settlement with former NUMMI workers.

The suit was brought by workers on medical leave when NUMMI was shut down in March 2010. It’s not that they had gone empty-handed. After GM had pulled out of NUMMI in June 2009 and left Toyota holding the bag, Toyota announced plans to pull out by March 2010. Toyota had negotiated a $281 million settlement-agreement with the UAW-represented workers, while GM was whistling Dixie.

At the time it was clear that some union brothers were more equal than others. (Read More…)