Your daily automotive news!
General Motors has announced about its production of C7 Corvette sports car to be starting in 2012 which is in advance of a planned launch in 2013.
Actually the American car manufacturer is apprehensive to take advantage of the interest that would be brought about by the car. This car was actually to be launched in 2014 but has been advanced.
GM may be detaching its bad assets, but it will have to do away with something else also and that is its title as the top-selling brand in America.
This is because Ford is likely to take the first place as the top selling brands in America.
A report from Bloomberg states, “Ford Motor Co., gaining ground on its distressed domestic competitors, may surpass General Motors Corp. this year to become the top-selling automaker in the U.S. for the first time since 1931.”
The Street reported as “Ford reported its smallest sales decline in 11 months, making it the country’s No. 2 automaker in June and raising the possibility that it could move to the top spot. Ford sales decreased by 11%, while Toyota sales decreased by 33% and at General Motors sales decreased by 34%.”
Some forecaster remark that demand is expected to increase in the approaching weeks as consumers look to take advantage of the government’s Cash for Clunkers program.
General Motors speedily came out from its May 31st Chapter 11 filing this morning. This will benefit the company from the Chrysler insolvency procedure and the Auto Task Force drive to return the corporate giant back on its feet.
The changeover from old to new GM thought to be quite flawless for consumers, at least primarily.
GM has plucked 4 divisions from its portfolio and at some time in the future it plans to considerably decrease its dealer body by not reviving franchise agreements.
These 1,100 dealerships form about 18% of GM’s total dealer. They have time with them till October 2010 to sell their residual cars. The number of products in the line up will fall from 48 to 34.
The new GM will have the following brands: Buick, Cadillac, Chevrolet, and GMC brands. GM has peeled Pontiac, Hummer, Saab, and Saturn from its range of brands. The latter 3 divisions are being sold to other companies.
General Motors Corp registered for insolvency on Monday. This has forced the 100-year-old automaker which was formerly a sign of American economic strength and dynamism into the wilderness of a doubtful age of government ownership. This is the third largest bankruptcy filing in the history of the US and biggest ever in US manufacturing.
This filing of bankruptcy in order to render an extra taxpayer fund of $30 billion is an enormous speculation for the Obama administration. This was done in order to bring in some restructuring for the automaker.
The immediate allegation is that GM will get smaller and thus reducing its market share to a lesser competitive structure. This will give an opportunity for rivals like Toyota, Honda, Nissan and Hyundai to take advantage of the situation and rise up and affix their stamp in the auto industry.
General Motors has announced that its multi-billion-dollar bailout from the US government will not prevent it from running out of cash. GM’s auditors Deloitte & Touche have conveyed ’substantial doubt’ that the car maker can continue as a going concern. A Securities and Exchange Commission (SEC) filing from GM has spot lit the degree of the car maker’s problems, forewarning that it may not be able to repay a $1bn bond. Deloitte & Touche’s doubts about GM’s endurance are established on sustained operating losses, negative shareholders’ equity and the helplessness to make enough cash flow through sales.
The car maker revealed that its liquidity fell below the levels needed to run its business before it began to get emergency loans from the government last December. GM has till now received $13.4bn from the US government and has applied for another $16.6bn. It is also of the opinion that it will receive around $6bn from governments in other countries where it manufactures, including the UK, Germany, Canada, Sweden and Thailand.
Saab is projecting to split from General Motors and is looking for funds from public and private sources to become an independent car company.
Saab is planning for a survival plan which includes a reorganization process and that plan will be obtainable to its creditors in three weeks’ time.
The company will bring all its design, manufacturing and engineering facilities and actions back to Sweden, and supposes that launching the new-generation 9-5, 9-4X and 9-3X is still feasible.
Managing Director Jan-Ake Jonsson said yesterday: “We explored, and will continue to explore, all available options for funding and/or selling Saab and it was determined a formal reorganization would be the best way to create a truly independent entity that is ready for investment.”
Meanwhile, General Motors is also getting ready to spin off its Saturn domestic division as a break up marketing and distribution agency.
The production of Hummer H2 has been put off till March and rumors are there saying that it may never restart.
The AM general facility in Mishawaka, Indiana, has shut down the line and has axed 200 workers since demand for the huge gas-gulping 4×4 has almost come to a standstill.
General Motors has put Hummer brand up for sale, but no serious offers has yet been received by it. Production of the military-issue Hummers will not be affected.
Outgoing US president George W Bush has agreed a $17.4billion (£11.6billion) loan to two of America’s struggling car companies.
The money will be taken from the $700billion ring-fenced for the Wall Street bail-out, with $13.4billion available in the short-term and a further $4billion to follow later next year.
The loan to General Motors and Chrysler (Ford is in a less desperate situation) is contingent upon their submitting a viable ongoing business plan by the end of March 2009.
The US Senate had earlier rejected appeals from the car companies for direct aid, but Bush said that ‘these are not ordinary circumstances. In the midst of a financial crisis and a recession, allowing the US auto industry to collapse is not a responsible action.’
GM and Chrysler will be expected to come to an agreement with workers’ unions over pay and benefit deals, offering packages on a par with the less generous deals given by the foreign car-makers manufacturing in North America, and to reduce their debt.
They will also be required to make concessions such as getting rid of private corporate jets and cutting executive pay and bonuses.
If the companies’ submitted survival plans do not meet with approval next March, the Senate has the power to recall the loans and, if these are not repaid, thus instigate bankruptcy procedures. The ultimate decision on this, however, will be down to President-elect Barrack Obama.
General Motors signed an agreement with the western Indian state of Maharashtra to unfold an engine and contagion plant to be located in Talegaon. GM previously has a 2nd vehicle plant in Talegaon that will begin procedures next week.
The Chevrolet Aveo, Chevrolet Tavera, Chevrolet Optra , and Chevrolet Spark are already constructed in India in Gujarat. The capability that will begin procedures next week will have a facility of 140,000, boosting GM’s overall capacity in India to 225,000.
With the sale of passenger vehicles per year in India figured to reach 2 million units by 2010, the country constitutes a ripe market for GM, particularly in the genre of small cars.
GM will be in direct rivalry there with the Nano, a product of Tata Motors costing roughly $2,283 per car and set to commence in October.
Rival automaker Ford also began operation in May at its engine assembly plant in Chennai, located in southern India. That facility is anticipated to reach an ultimate capability of 250,000 units.
Although Toyota is sheltered in a showdown with General Motors to become the major automaker in the world, the company has proven not capable to flee the penalty of global economic shifting. President of Toyota declared less sales estimates on Thursday, August 28 and forecast cut down numbers through 2009.
The retooled anticipations now have Toyota selling 9.7 million cars and trucks in 2009. Even though 2.1% higher than the project 9.5 million units for 2008, the figure is 700,000 units lower than master estimates.
The alteration lets in a 10% pull-back on anticipated U.S. sales to 2.7 million units. The company is being hit hard in the U.S. where it greatly stressed trucks and SUVs, form factors that have plunged from favor with the general public in the fact of high gasoline prices and growing environmental fears.
Overall, sales of automobiles have declined in both North America and Western Europe, the world’s two most significant markets. Sales in the U.S. are down 10.6 % for the January-July period over 2007 and European sales dropped 2 % in the first six months of this year.
