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.
Germany’s Chancellor Angela Merkel made appreciative noises over the 4 billion EUR GM wants to invest into Opel through 2016, but gave no indication that she is willing to chip in. (Read More…)
GM CEO Dan Akerson and his dispatched-to-Europe fixer Steve Girsky emphatically denied that its loss-making Opel arm is up for sale or might be merged into a joint venture with equally loss-making Peugeot. (Read More…)
GM will resume advertising on Facebook, nearly a year after it ceased running ads on the social network.
Last week, GM CEO Dan Akerson said that GM might move production away from South Korea if tensions with North Korea escalate. Today, Korea labor unions said Akerson is using the crisis as a pretext to gain the upper hand in upcoming labor talks. (Read More…)
GM CEO Dan Akerson and freshly minted Opel CEO Karl-Thomas Neumann will receive a one hour audience with German Chancellor Angela Merkel this Thursday “to discuss the rejection of a plant closure timetable by workers which could speed the factory’s shutdown,” as Reuters reports. (Read More…)
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.
GM will have two new mid-size pickups out in 2015, just in time to steal the spotlight from the all-new Ford F-150. And according to TTAC Commenter and GM exec Mark Reuss, the two trucks should have fairly different missions.
Buick’s been on a roll this year, their sales are up and their owner demographics are younger than they have been in recent memory. The cynic in my says that’s because half their clientele died of old age, but it has more to do with their product portfolio. Say what? Yep, it’s true, the brand I wrote off for dead last decade is targeting younger buyers with designs imported from Europe and finding sales success. The Verano turbo shattered my preconceptions, but can Buick do it again? A brown Encore arrived one rainy morning to see if it was possible. (Read More…)
GM has a huge problem in Bochum – or an unexpected opportunity. Workers at Opel’s Bochum plant yesterday refused a restructuring plan that would guarantee auto production in Bochum through 2016, and that would keep the plant making components after that. GM answered on the same day: ”Production of the Zafira Tourer and the waiver of enforced redundancy will end after 2014.” This would open the door to closing the doors in Bochum.
It also could become extremely costly for GM. (Read More…)
One of the most interesting things to come out of the recent Chevy Impala launch – aside from the fact that GM thinks it can sell the thing for $40,000 – is that the current, unloved Impala will live on as a fleet-only special called the “Chevrolet Impala Limited.” To that, I say: great idea.
I’ve been a proponent of fleet-only cars ever since the 1997-2003 Chevrolet Malibu was rebranded the Chevrolet Classic, a name which would’ve been appropriate when it debuted. In fact, I think there should be even more fleet-only cars – an idea that’s unpopular in the automotive industry, but highly praised between my ears. Allow me to explain.
With discretionary funds increasingly decreasing, low-cost (or make that “approachable”) cars are all the rage. Before the 2014 Corvette Stingray, the first new Corvette in nine years, is going on sale in summer, there already is talk of a little less expensive model. (Read More…)
When I was in the automotive propaganda business, one of the most horrifying experiences were changes on the top. CEOs could come and go without drama. Changing marketing managers meant serious trouble. It’s a bit like Indian widow-burning: He goes, you go up in flames. When Joel Ewanick came to GM, he had his old buddies Goodby, Silverstein in tow. When Joel left, the funeral pyre was assembled for Goodby.
Here come the matches. (Read More…)
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.
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