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I love the double-speak.
This is more like it:
"LaNeve said, but the numbers indicate that pickup sales have perhaps bottomed out. LaNeve also said that he thinks overall industry sales may have hit bottom in June or July.
‘I think we saw the bottom and are going to start scratching our way up to numbers that are improving.’
'Up to numbers that are improving?' On what? When? By how much? Is GM really a publicly-traded company? The automaker’s stunning lack of accountability continues apace. For now. One way or another, there will be a David Halberstram-predicted reckoning."
I grew up with GM cars, and I'm sad to see it all come to this. Unfortunately, it ain't 1965 anymore. If I had my way, GM, Ford, and Chrysler wouldn't get a dime of my tax money.
Tick...tick...tick.
Regards,
OW
Regards,
OW
So that's how it is!
Regards,
OW
By conventional standards, GM's August sales were nothing to write home about: at 309,000 units, they fell 20 percent short of year-earlier sales of 388,000 vehicles.
But GM executives made the case that their incentives-fueled sales performance in August actually was a lot healthier than those numbers implied.
For one thing, August a year ago represented a 2007 peak for GM in both overall sales and market share, as well as in fleet sales. So that represented a formidable comparison, especially because the company has trimmed fleet sales so far this year even more than the significant amount it already had anticipated.
The second reason GM was encouraged by August results was simply that they were 31 percent better than bleak July sales and the highest monthly total for 2008, even though August typically isn't the industry's strongest sales month.
"We've had a tough year," noted DiGiovanni, citing a major supplier strike and some local labor disruptions at key assembly plants on top of the gasoline-price shift and eroding economic fundamentals the entire industry has been dealing with.
"The worst may be behind us," he added. "With new products coming up like the [Chevrolet] Traverse [crossover in September], it gives us cause for optimism."
Of course, the return of GM's Employee Discounts for Everyone incentive deals were the main impetus behind GM car retail sales that actually improved by more than 1 percent over last August, as the company's overall retail sales declined by 13 percent.
As expected, GM announced on Wednesday that it is extending the incentive program through the end of September and making some 2009 models eligible for the discounts.
The Good
Chevrolet cars sold well, with the division posting its best sales numbers since September 2007. Malibu was the biggest gainer.
GM's Lambda-platform crossovers continued to sell well. Buick Enclave sales, in fact, were up 60 percent in August. The new Traverse joins the group this month.
The company sold 80,000 pickup trucks in August, most in that segment for a year. Overall, it reported signs of strengthening in pickup demand and sales as well as in full-size utility vehicles.
The Bad
Each GM brand saw double-digit sales declines, "led" by Hummer's 46 percent. GM, of course, is trying to sell the Hummer brand.
Though Chevrolet did well in cars overall, its smallest models didn't perform well. Aveo sales were down by 21 percent and declined by nearly 2 percent for the year to date. Cobalt sales fell 27 percent last month but are up nearly 10 percent for the year.
So, the bleeding is slowing but still oozing!
Regards,
OW
Now I tell the truth for a living. A good living. I get big checks to write this garbage. Big enough that I can buy any car I want. OK, that's a stretch. The Mechanic cannot afford a Rolls or a Bugatti, but I've got money to spend. And I've got good taste. I'm also college-educated. Literate. And I appreciate the best. When I spend my money I spend it on quality goods. And the car I choose to be seen in must be a quality item. The finest of its kind.
In other words, I would not buy an American car. It's hard for me to even type that. Fact is, I'd like to buy an American car, a great American car. It just doesn't exist.
This only occurred to me recently, when my father, The Mechanic Sr., asked me what car I would buy if I could buy anything. I realized there wasn't an American car or truck on the list. Not one I lusted after.
Oh sure, the latest batch of goods from Eminem's hometown is worth a look; the Cadillac CTS is strong, the Buick Enclave is very good and the Pontiac G8 GT is a fine machine. I can also say good things about the Dodge Challenger SRT8, the Ford Flex and the Chevy Malibu. I also think the Jeep Grand Cherokee SRT8 is pretty cool. And then there's the Corvette, which is likable in Z06 form and downright desirable in ZR1 trim. They're all good cars and trucks; they're just not the best.
And I said I want the best. The very best. And for the best you simply don't shop in Dearborn, Auburn Hills or Detroit's Renaissance Center.
Shame, really. But the facts are the facts. The bar keeps moving and Ford, Chrysler and General Motors are forever in catch-up mode. Have been since the first muscle car era became the first energy crisis. Hate to be the one to say it out loud, but Detroit remains a lap down.
Sure I'm kicking it when it's bleeding all over the floor. With full force and a pointy boot. But this is why it's down. Eventually, not making the best catches up with you.
Now your panties are in a big ball of a bunch, aren't they? Well, before you fire off some half-witted comment, keep reading. I'm about to cite examples.
For example: the new Corvette ZR1. 638 hp. Fastest, most powerful car in GM's 100-year history. Yawn. The new Mercedes SL65 AMG Black Series packs 670 hp. It also looks like it costs six figures (the ZR1 is just a Z06 with a window cut in its hood) and doesn't pack a Wal-Mart interior.
I know, I know. The ZR1 is $100,000 while the SL65 Black Series will be more than twice that. So what? The Benz is still the best.
Screw price. I'm dog tired of giving GM and the rest of Detroit that out. Their cars are almost always cheaper and usually bigger. That's their game. They can't make it better, so they make it cheaper and bigger. Kinda like Costco. You get 500 rolls of the world's roughest toilet paper for $1. Your [non-permissible content removed] is killing you, but there's no arguing the value. (Ironically, the Germans make fine automobiles but produce the world's roughest TP.)
It worked for the Corvette Z06. "As fast as exotics for less than half the price," said the ad copy. But now the world has the Nissan GT-R. It costs about the same as the Z06, but delivers more speed, a better interior, more features and more technology. Don't even get me started on build quality. Without a doubt, the GT-R is the best high-performance car you can buy for $80,000.
See, the bar keeps moving and Detroit's a lap down.
I could go on with specific examples, but it's easier to just make a blanket statement: No American car, from the lowly Ford Focus to the mighty ZR1, is truly the best car in its segment in the world. Not one. The biggest of big pickup trucks being the exception and that's only because they're still the only game in town for dually diesels. Honda and BMW don't make those.
Sad, really. And it's not something Detroit wants to hear. They read the praise in the press and they believe their own PR. Cadillac really thinks the CTS is as good or better than anything in the world. Better than a BMW 5 Series. Better than a Mercedes E-Class. Sorry, guys. It's closer than you've ever been, but it's still a lap behind.
And if the members of the automotive press actually voted with their dollars instead of writing with their hearts, they would all be driving something from Japan or Germany. Well, the smart ones would anyway. The ones who don't live in Detroit. -- The Mechanic, Inside Line Contributor
Regards,
OW
Personally I see nothing wrong with copying and pasting Communist propaganda.
In every class of car, the US companies are not the state of the art. Market share will continue to slide as this truth bears out.
Regards,
OW
If I remember correctly, and its been awhile, it was once pointed out that a simple link to that article should be more than sufficient rather than copying and pasting text that could be copyrighted regardless where the text resides.
BTW, my comment on Communist propaganda was meant to direct attention at McCarthyism rather than the actual cut and paste. :P
Regards,
OW
Regards,
OW
Falling gasoline prices helped boost wholesale prices of large used trucks in August, NADA AuctionNet data show.
Average wholesale prices of used full-sized pickups rose by 9.9 percent -- about $700 -- in August from June, when gasoline prices peaked, according to AuctionNet. But in the first eight months of 2008, those prices fell by 14.5 percent from the year-ago period, the company said
Chevrolet’s marketing manager for small cars, Brian Brown, says that transaction prices - and also profits - are up for the compact Chevrolet Cobalt. General Motors has long had difficulty selling small cars profitably in the U.S., but with fuel costs on the minds of many buyers, sales, and thus profits, are up for the Cobalt.
Brown told Automotive News that profit per Cobalt sold is up 6 percent since last year and sales overall are up nearly 10 percent for 2008. Sales were down in August for the Cobalt, but GM says that’s because supply was down. All of this bodes well for the upcoming Cruze compact.
Demand for the Ohio-built Cobalt is partially up because of GM’s push for more efficient models and marketing, like the efficiency-oriented Cobalt XFE.
Like 62 said, those that have a need will continue to buy. I'm hoping my next SUV will be a diesel in 3-5 years. Unless we decide to sell our boat and travel trailer, then I'll go back to cars.
It was still busy at our lake and campground all summer. Labor Day was nuts, campers and boats everywhere. I think people kept using their toys, but they just didn't go as far to do so.
Maybe that should be re-worded, as that sounds like it is just settling for what's available. I don't know anyone that doesn't want the best that their money can buy, or that money can buy period. The chinese-made products may look like and be a "good" value (especially since you're getting all that lead for free), but in the end they aren't the best value because of poor quality, increased wear, shorter life cycle / usage... Any savings seen up front is blown due to frequent repair / replacement. It's something we in engineering are almost daily explaining to the upper-level execs who only see the up front cost-savings and an opportunity to get a larger bonus for making the numbers and coming in below the project cost constraints and budget. (But in the end more monies are spent on PM for the "equivalent" tools and molds from China, India, Korea, some cheap-o US firms too...)
I think in the end people want the best their money can buy, and if it's not a GM product, then GM needs to get on the ball. They can ill-afford to think in terms of good-enough, competitive, comparable (especially the ill-conceived notion of just because it's the same size as something else it automatically competes with that product, whoever came up with that crap needs a mental check)- they must exceed on all fronts, period.
Maybe that should be re-worded, as that sounds like it is just settling for what's available.
No it does not. It sounds exactly like what it says. Not everyone wants to spend the money to get the best out there. I buy Abboud suits which may not be the best out there but then again they are a lot cheaper than some real nice custom made suits. And there are probably some out there that are just as happy spending a whole bunch less and buying a plain old Macy's suit. They all get the job done but the price variation is from $250 to $1500.
These are shots leaked from somewhere.
Thanks for the candid insights.
Regards,
OW
I think that the gov't intervention w/ the big 3 has just as much to do with the current credit crunch as anything. While the bleeding cash flow does not help matters, how many banks CAN help them???
Anyhow, if the gov't can guarantee $6 TRILLION in Fannie Mae and Freddie Mac loans, or give away HUNDREDS of BILLIONS to other countries in aid, what's a few billion in loans to a few of our own???
GM on Friday informed Cadillac dealers of new lease incentives, through its GMAC financing arm, on 2009 Cadillacs, as well as the Saab 9-7X SUV, to last through Sept. 30. That makes the Cadillac lineup and one Saab model GM's only vehicles in the United States with discounted leases through GMAC, said GM spokesman John McDonald.
GM, which still is scaling back on its leasing incentives, is singling out Cadillac and Saab as a competitive move because leasing tends to be popular in luxury segments.
In August, 40% of the vehicle transactions for luxury brands were leases, according to J.D. Power and Associates. For Cadillac, 11.5% of transactions were leases last month.
GM is cutting back on lease incentives through GMAC. But GM's financing arm, which is 51% owned by Cerberus Capital Management, is not done leasing, said GMAC spokesman Mike Stoller.
"Auto financing and leasing continue to be part of what we do at GMAC," he said. "There are no plans to eliminate that."
Since mid-April — as increasing gasoline prices began to prompt consumers to choose more economical vehicles — the Cobalt's average transaction price is up $775, said Brian Brown, Chevrolet's marketing manager for small cars and crossovers. The average transaction price rose from $13,519 on April 10 to the current $14,294.
With higher prices and more demand comes greater profitability. Although analysts say GM typically has lost money on small cars, Brown said the Cobalt is now a moneymaker. The Cobalt's profit contribution margin — the profit per unit sold — is up 6 percent since 2007, says GM.
"I don't think anyone thought this shift of moving into smaller, more fuel-efficient vehicles would be as dramatic and happen as quickly as it did," Brown said. "I have to laugh: In the last 90 days, one of the top five trade-in vehicles for a Cobalt is an F-series pickup."
The improvement for the Cobalt, a compact in its fifth year on the market, bodes well for the Chevrolet Cruze
Tight supplies contributed to the Cobalt sales drop in August. GM had 17,900 Cobalts on hand on Aug. 1, a 28-day supply. A 60-day supply is considered ideal.
In early August, GM added a third shift of production at the Lordstown, Ohio, plant, which assembles the Cobalt. GM expects that shift will add 80,000 Cobalts during the next year. Last week, The Wall Street Journal reported that GM would further boost production by running three shifts on weekends.
The four-door hatchback Chevy Aveo from General Motors leads the best new-car values based on "total ownership cost" as calculated by Edmunds.com, the Santa Monica, Calif.-based automotive data firm. Based on $5-a-gallon gas, the highest-ranked hybrid was the Honda Civic at No. 10. The Toyota Prius hybrid, No. 1 in the government's fuel-economy rankings, came in 26th.
Hybrids, powered by an electric motor and a gasoline engine, typically get better gas mileage than their non-hybrid counterparts, but carry higher price tags.
A 2008 Aveo hatchback with manual lists for $10,235 and is rated by the EPA at 27 miles per gallon in city/highway driving. Prius, by contrast, has combined fuel economy of 46 m.p.g. and a base price of $21,500.
The study's purpose "isn't to discourage people from buying hybrids," said Jesse Toprak, head of industry analysis for Edmunds.com. However, "consumers ought to consider regular-engine small cars if their goal is just to save money."
The Edmunds.com findings are at odds with those by Consumer Reports, which ranked the Prius and the Civic hybrids among the 10 cars that offer "the best fuel economy for the buck."
Who ya gonna believe? Edmunds or CR?
I think that pretty much sums it up. Hopefully that doesn't hurt the Volt.
I'm guessing General Motors.
Maybe that should be re-worded, as that sounds like it is just settling for what's available.
No it does not. It sounds exactly like what it says. Not everyone wants to spend the money to get the best out there. I buy Abboud suits which may not be the best out there but then again they are a lot cheaper than some real nice custom made suits. And there are probably some out there that are just as happy spending a whole bunch less and buying a plain old Macy's suit. They all get the job done but the price variation is from $250 to $1500.
Using this logic we would all drive Hyundai and Kia. they are priced about the same as GM vehicles and have a much longer warranty.
I buy Joseph Bank suits...only when they go on sale.
If it is they will be fired. There is a huge storm going on right now to figure out what happened.
me too
2014 Malibu 2LT, 2015 Cruze 2LT,
Who ya gonna believe? Edmunds or CR?
It's apples and oranges. CR was measuring a somewhat false $/mpg to show that if you pay more for say, a Prius you may not get more mpg proportionate with the cost. Not really the same as true cost to own. I'd rank TCTO as a more sensible measure, as it factors in depreciation among other things. Goes to show you that when a car is cheap, it depreciates less, and gas mileage alone is not going to make up the difference if the car costs $10K more....
That's what I thought as well when I saw it. It is 4-door hatchback similar to the Prius and the upcoming Honda Insight. Does this car belong to the $35,000 club?
What's worse, an article on Car & Driver said the car will be released in November 2010. GM is probably the only automaker that shows production cars more than two years ahead of their on-sale dates. That's desperate to me, and makes me think that GM leaked the pictures on purpose after they realized the Honda beat them to unveil the Insight, a hybrid much cheaper and has an almost similar body profile. The leak was needed to cool things down before the official disapointment.
That's the way it looks to me. I mean the (original) Insight, the first and second gen Priuses -- they were OUT and then became well known. Toyota in particular managed to put out a car that, even though pretty ugly, is reasonably affordable, reasonably spacious, and gets GREAT gas mileage. And to top it off, even with the increased complexity it is VERY reliable!
The General starts marketing years in advance, pumping up a car that was nowhere near done, probably because, as some poster once said "the Volt is a marketing campaign, not a car". While it might become a car, it certainly was nowhere near there when the ads started. The ad campaign seemed to be a sort of "emperor-has-no-clothes" to look green and high mileage while not much in the way of products that weren't big trucks actually existed. It bought them some time while they scrambled madly. And I can't say I blame them, they needed to do something.
But compared to the Prius (even the current one), a car that goes 40 miles or whatever on a charge, but costs $40K - that's NOT an easily attainable $23K Prius! That's out of the ballpark on price and it will never be more than a halo car at that price. So all of this advertising - is this GM's "green" Plymouth Prowler? So let's see about product from GM here:
Trucks, SUVs - good stuff
CTS - very good stuff
Malibu - pretty good stuff, let's see about long term reliability
Smaller hybrids - green line - a kludge of very limited value relative to Toyota or Honda's technology
Two mode hybrids - perhaps promising, but we've only seen this on megaguzzling vehicles. How about something smaller?
E85 - was cheap to modify the code on the chip and slap a badge on the car, but doesn't really do anybody much good and fuel availability is very limited - an advertising campaign more than anything
Volt - see above, also an advertising campaign
In some ways I think even Ford is doing much better, as they have some GREAT products in Europe and are now aggressively working to bring them over here. Not so sure about GM's European products, the Astra is not setting the world on fire.
Although GM seems to have more financial resiliency, Ford in many ways appears better positioned with product - fewer brands, better consistency of quality products. It will be an interesting next couple of years. And then Chrysler.... well, what can we say? :sick:
Regards,
OW
I always wonder why anyone would think they would "accidently" release photos one week before they were supposed to go online. Someone, an it was someone outside GM, made a mistake.
Hopefully you were not serious about this statement. Took as lot more than a chip.
deliver more than 900,000 vehicles annually at retail within 24 to 36
months, if targets set by the operation’s general manager are met.
“There will be fleet sales above and beyond this, but we’re not going to
speculate on a percentage,” says Susan Docherty, a GM North America vice
president who oversees the three brands.
The 2010-2011 retail sales target represents a gain of 10.9% from 2007
levels.
Buick-Pontiac-GMC sold 1,029,873 vehicles overall last year, including
811,740 to retail customers. Of the retail deliveries GMC accounts for
more than half with 440,963 units, followed by Pontiac (214,166) and
Buick (156,611), GM says.
Taking time out from a dealer meeting here, Docherty tells Ward’s her
overall strategy is to have a minimum of 15 models for the sales channel
she took over less than three months ago.
“I need four to five models that will sell at least 100,000 units
annually,” she says. Docherty says she also plans on having four entries
that sell at least 75,000 units annually.
Five niche vehicles that total about 100,000 units in volume annually
will round out the portfolio, she says, revealing that she, GM product
chief Bob Lutz and head designer Ed Welburn are working to create the
models needed to achieve the new sales targets.
Overall sales in August for the channel jumped 35% from July levels,
helped along by GM’s aggressive incentives.
Meanwhile, the channel chief says she is focused on making the portfolio
appropriate for the three brands.
There are 1,700 dealers that carry all three brands. They currently
account for 75% of the division’s sales, but that will climb to 80% by
year’s end, Docherty says. Only a handful of stores do not carry all
three brands.
Catharines plant to make fuel-efficient 6-speed front-wheel drive
transmissions, which would support more than 300 jobs, Industry Canada
said in a release.
In Oshawa, where GM recently announced it was shuttering its truck
plant, eliminating 2,600 jobs, Canada's largest auto maker has agreed to
build a mid-sized hybrid vehicle at its car plant.
GM will also commit C$40 million for environmental research at its
Canadian engineering center, also in Oshawa.
The Canadian government, which is widely expected to call a federal
election on Sunday for Oct. 14, is not required to contribute any new
funds.
here in the U.S., the hatchback is a proven breadwinner for GM’s
European divisions – Vauxhall and Opel. As such, the popular hatchback
will be receiving a significant upgrade in 2009, and our spy
photographers spotted the new car while out testing.
Although GM is keeping mum on the new Astra’s technical features, the
automakers claims the next Astra will boast a “mix of technical
innovation and groundbreaking design that promises to raise the bar in
the compact” segment.
The next Astra will ride on GM’s new Delta II platform and will likely
share GM’s new turbo 1.4L, which will also see duty in the Chevrolet
Volt and Cruze.
The 2009/2010 Astra will receive heavy influences from the new Insignia
– which will be branded as the Saturn Aura when it hits the U.S. market
– both in styling and technology packages. The most innovative
technology that will find its way aboard the Astra will be the
Insignia’s Front Camera System. FCS not only acts as a lane departure
warning system, but can actually recognize roadside signage, such as
speed limit signs.
Toyota Motor Corp. will build batteries for its hybrids in
North America eventually, as part of a plan to drive down the production
costs of fuel-efficient models like its top-selling Prius.
As part of that strategy, Toyota expects that its next-generation Prius
will have a profit margin close to that of a traditional sedan like the
Corolla, a senior executive said on Friday.
Toyota, like other major automakers, does not typically detail
vehicle-by-vehicle profitability. But the high cost of developing new
hybrid systems and batteries has widely been seen as a constraint on the
initial profitability of such models.
U.S. automaker General Motors has said it expects to lose money
initially by selling its all-electric Chevy Volt, due to the high cost
of battery packs.
"We reduced costs of hybrid systems for the current Prius by 50 percent
from the first generation," Vice Chairman Kazuo Okamoto said on Friday
at a presentation to financial analysts and reporters in New York.
"For the next-generation Prius, we will be able to cut costs by another
half, so I think we've been able to ensure profitability will be similar
to regular vehicles, such as the Corolla," Okamoto said.
So they reduced the cost on the 2nd gen by 50% over the 1rst gen and the 3rd gen will halve it again. This will make it almost as profitable as the Corrolla which is not exaclty a high profit vehicle. Shows that the Prius has been sold at a loss for awhile. Now in the 3rd gen with $4 gas they will start amking a decent profit.
The Volt is a notchback and doesn't have the "peak" in the roofline profile, so it ends up looking a like a slightly overinflated Civic.