GM loses around $49,000 on each Volt it builds says Reuters. GM sold a record 2,831 Volts in August, but that may “have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce,” says Reuters after a deep data dive into the elusive profitability of GM’s green halo car. (Read More…)
Opel must feel like someone who’s on his deathbed, surrounded by relatives who muse how much the organs will fetch. After we ran our piece on Detroit rumors about Opel and PSA, everybody started to weigh in on the issue. The recommendation by a Wall Street analyst that GM should “dump Opel” made headlines around the world. The Economist mused aloud what an “Opel-less future” would be like.
Even here in Chengdu, China, Opel was given up for dead. (Read More…)
Bad day for PSA and by association partner GM: PSA Peugeot Citroen will be dropped from France’s CAC 40 blue chip stock index, market operator NYSE Euronext told Reuters. To add insult to injury, the former blue chip will be replaced by a Belgian company, chemicals group Solvay. (Read More…)
There is one corner of the world where the glory days of General Motors are a reality rather than a memory; Uzbekistan.
A report by Reuters suggests that the Canadian Auto Worker’s union may take the unprecedented step of striking at the plants of all three domestic automakers.
Now that we have the August numbers for the world’s second largest car market, attention turns to the world’s largest, China. The Chinese economy is cooling down. Has it hit car sales? Official numbers won’t be here until next week, but our patent=pending China sales oracle has spoken. (Read More…)
When you want to make and sell cars in India, you don’t need a joint venture partner. Except when you are GM. In the dark days of December 2009, GM cut a deal with Chinese partner SAIC, gave them half of its India business and a golden share in China for much needed cash. SAIC underwrote a $400 million loan when GM was out of money. Now, India is flooded with Chinese cars bearing the Chevrolet badge. (Read More…)
Only one more day until we get August sales data, and September 4th will bring us the latest inventory numbers. Here at TTAC, we’re keeping an eye on GM’s full-size truck inventory, which is as high as 145 days for the GMC Sierra – well above the 100 day supply that’s considered safe for full-size trucks.
In rapper parlance, the word “ignorant” often denotes someone or something that is offensively ostentatious, lacking in taste, discretion or refinement. It’s a great descriptor for the Cadillac Escalade, and according to an Automotive News report, things aren’t going to change when the next generation debuts.
Japan’s automakers released global production and sales data for July today. It is an ancient Japanese tradition, which is also shared by large European carmakers, but shunned by most American globals. GM for instance reports only quarterly on a global basis, and keeps observers guessing in between. July data released by Japanese large automakers shows a strong rebound after last year’s multiple disasters. Honda looks especially strong, while Toyota’s march towards regaining the title “World’s largest automaker 2012” appears unstoppable. (Read More…)
Overlooked in the announcements by General Motors and Chrysler that their factories will not be hosting any presidential campaign events such as photo ops or speeches by either the Obama or Romney campaigns is the fact that GM, which for 30 years has supplied both major US political parties’ national conventions with hundreds of new vehicles used as courtesy cars, will not be doing so this year. Frankly though the Big 3 are rather notorious for the casual way in which they provide complimentary cars to high profile celebrities, and though I was familiar with the practice of providing courtesy cars for major sporting events, I had no idea that GM has been doing so in connection with the big political conventions.
Members of the Canadian Auto Workers union have voted overwhelmingly in favor of a strike mandate as talks between the union and the Big Three resumed today.
GM must feel like well-to-do Eurotrash coming to America: Lots of cash in the bank, but lousy credit. GM wants to change this and is talking to banks about doubling its $5 billion line of credit, the Wall Street Journal says. (Read More…)
New panic at GM’s European Opel dependence: Opel needs to shed 30 percent of its workers. This is the supposed target of a “secret strategy” that has been agreed between Opel and GM, says BILD, Europe’s largest circulation newspaper under the headline “One out of three jobs imperiled!”
Based on an anonymous inside source, BILD writes about a three-step phased plan:
(Read More…)
While there is renewed chatter about a renewed GM bankruptcy, ratings agency Fitch thinks otherwise. The agency that assesses the chances of defaults by companies and countries raised GM’s default rating from BB to BB+, which is once notch below investment grade. (Read More…)
Recent Comments