Readers of our departed EIC’s chronicles will no doubt understand that building a luxury brand is a gradual, concentrated effort that won’t bear fruit for many years. Over at Audi, it took Herr Schmitt and Herr Piech the better part of two decades to morph Audi from an oddball line of tarted up Volkswagens into a global luxury player, and that journey was not without its own mishaps.
Unless you pay a visit to Mr. Lang’s lot on the right day or really love Volkswagen, the only wagons available for Americans today are mostly Teutonic, and all come with a high price tag. According to GM North American President Mark Reuss, that’s a problem, and one he’d like to fix pronto.
Photo Courtesy of Cardomain.com
Today, my wacky morning DJ, right after he said democracy was a joke and called me “dude,” hit us with this fun fact: 39% of young people choose the same brand of car their parents drove. I’m not sure if that is impressive as the previous day’s fact, that 20 million pounds of candy corn are sold annually in the United States, but it made me think about my father’s preference in vehicles and whether or not I had followed suit. Despite the fact that my old man had pretty good taste in cars, the answer, oddly enough, is “no.” (Read More…)
The Government Accountability Office issued a report on the U.S. Treasury’s investment in General Motors (and Ally Financial, the former GMAC credit arm of GM) which says that the automaker has improved since 2008 but that there still are concerns about competitiveness and market share as well as pension and labor costs. “Although GM’s financial performance has improved significantly since the company initially received federal assistance, questions remain about competitiveness, market share and costs,” the GAO said. (Read More…)
With the vast majority of the government’s General Motors shares sold, the U.S. government is reporting a $9.7 billion loss, according to a Congressional report cited by the Detroit News.
The next Citroen C3 and Peugeot 208 will not share a platform with Opel’s Corsa as originally planned
In the wake of news that China’s Dongfeng Motors is going to take an equity stake in PSA/Peugeot Citroen, the French automaker says that it is scaling back its alliance with General Motors, which owns 7% of PSA. PSA said that a planned joint subcompact platform that was seen as the basis of the tie-up with GM will probably be cancelled. “Further analysis showed that the business model just wasn’t there,” a PSA spokesman said. Financial statements released by PSA say that anticipated savings of $1 billion due to synergies with GM will be adjusted downward.
Many dealers are complaining that price differentials between the all new GM pickup trucks and heavily discounted competitors from Ford and Ram are leaving them with disappointing sales results. The new Chevy Silverado and GMC Sierra were launched in June amid heavy incentives from competitive brands. But the trucks, which have been praised by the press, are not moving quickly. Automotive News reports that a Pasadena, Texas dealer says that his supply is up to 170 days, compared to his normal inventory of 110 days supply. A dealer in Austin reports a 120 day supply, up from his norm at 90 days.
A brief memo from General Motors Canada confirmed that the Oshawa consolidated line, scheduled to close in 2014, will stay open until 2016. GM is citing strong market demand for the Chevrolet Equinox and the outgoing, Chevrolet Impala (sold as a fleet-only model) as a reason for the decision, but cautioned that ” All scheduling adjustments are subject to market demand”.
Under the terms of the bailout, GM must keep 16 percent of its production in Canada until it has repaid its loan obligations to the Canadian government, or until December 31, 2016. After that date, the future of Oshawa is uncertain.
GM Canada’s CEO is expressing apprehension over the way cheap auto loans are fueling vehicle sales in Canada.
The way that the auto industry uses the traditional independent dealer sales channel and proposed alternatives to that process have prompted considerable debate here at TTAC recently. While industry followers watch Tesla’s attempt to change the way automobiles are retailed with their factory owned outlets, General Motors is doing its part to change the retail sales equation, or at least make the negotiating process a bit more user friendly. If buyers want to, they can now complete the entire car buying process and even take delivery without ever stepping foot in a traditional dealership. However, GM says that the program is there to complement the existing retail dealer sales channel, not replace it. According to Automotive News, by the end of 2013, GM will expand the Shop-Click-Drive online shopping program nationally. (Read More…)
The nearly decade long wait for the new Cadillac Escalade is over, with the 2015 model debuting in New York city at a special event hosted by GM. Our friends at AutoGuide.com attended and graciously shared their live shots with us.
The Globe and Mail‘s Greg Keenan reported some bleak news for Canada’s auto industry today, with Canada’s auto manufacturing output set to decline by as much as 25 percent by 2020.
Usually, in the U.S. pickup truck market, whichever company has the newest truck normally gets a bump in sales. While it’s hard to get Chevy guys into Fords and vice versa, about 6% of the market does shift to the most recently updated pickup because of businesses making decisions based on dollars and cents, not brand loyalty.
My name is Vojta and I drive a conversion van. And, yes, I do that in Europe. And no, I have never offered anyone free candy. Actually, no one even expects me to do so, as pedophiles in Europe don’t drive big vans. Or at least people don’t think they do.
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Ownership of VM Motori, the Italian maker of the V6 diesel engines offered in the Jeep Grand Cherokee and Ram 1500, is currently split 50/50 between General Motors and Fiat. But according to Automotive News, Fiat is looking to buy the other 50 percent, completing its ownership stake.
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