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While 2009 proved to be an abysmal year for the global auto industry, there was one major exception. The Chinese car market experienced a huge increase in sales, mostly due to the country’s expanding economy and a whole bunch of government subsidies.
GM fans would be glad to hear that 2009 was the year The General had the biggest success in China, experiencing a 67 percent increase over 2008 levels. In fact, GM China sales surpassed those in the US in during the first 11 months of 2009. To round off the year, GM China experienced a 96.6 percent sales increase in December 2009 versus the same period one year ago (December 2008).
What’s more, GM is anticipating an even stronger 2010, with GM China president Kevin Wale adding “the industry outlook is strong, and we expect more growth, albeit on a somewhat slower pace.” That’s music to the ears of GM and the company’s most loyal fans, as we all know how much The General has been struggling in the United States.
And while GM is doing everything it can to reduce its expenses all over the world, China is an exception. The General is spending money and investing heavily in China: in 2009, it opened a laboratory and safety facility and launched its OnStar telematics system. It’s also planning on opening an enormous proving ground in the country in the near future.
GM’s success in China can’t be properly discussed without mentioning its Chinese partner SAIC, to whom The General just sold the controlling one percent stake of its Shanghai GM partnership.
We hope GM can bring the level of success it’s having in China to other global automotive markets, especially the US.
There’s only one thing anybody could possibly not like about the current Cadillac CTS-V: the fact that it has two doors too many. Having realized this, GM will make the 2008 Cadillac CTS Coupe Concept a reality this year, and according to the latest statement from GM – the same is true of a CTS-V Coupe.
It’s okay, that tingly feeling is natural.
As GM told us last week, the gorgeous 556 horsepower chrome and leather missile will debut at the Detroit Auto Show next week. The news adds on to the already confirmed lineup including the (standard) 2011 CTS Coupe and all-new XTS for the two-week event.
Rumors circulating about the show lineup potentially including Cadillac’s future BMW 3-series fighter, the ATS and the Converj, which underpins the Chevy Volt’s workings in amazingly cut sheet metal- have yet to be confirmed.
I can’t pretend not to be I am completely stoked about the announcement that the CTS-Coupe will don the V badge and carry the 556-hp LSA engine. Despite my excitement, I still had the gut feeling it was coming anyways. But not unlike times when one is unsure they are loved until they hear the three magic words, it’s just that much more reassuring that GM made the announcement.
For details galore, check out GM’s full press release after the break. (more…)
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As the saying goes – better late than never.
On this (belated show), Manoli and I (Alex Luft) live cover webchat with Mark Reuss, GM’s newly-appointed president of North America. Enjoy!
General Motors will begin running its Fairfax assembly plant continuously on a permanent basis. The goal is to increase the plant’s capacity from the current 4,500 vehicles per week to 6,300 units in the same time period. The Kansas City-based factory makes the very popular Chevy Malibu and Buick LaCrosse sedans and consistently ranks among the most efficient automotive plants in the U.S. This news comes on the heels of GM’s decision to add a temporary third shift at the plant a few months ago.
While operating a plant 24 hours per day is not as simple as running a 16-hour operation, it’s nothing new – Chrysler’s Windsor, Ontario and Bramptom plants have been running three shifts for years. Even so, many would be quick to point out a concern that such continuous operation may have a negative impact on quality. Assembly lines require a lot of work such as scheduled maintenance, cleaning, and restocking – tasks that are usually performed during the down periods between shifts. To solve this, GM is planning on “overspeeding” parts of the assembly line in order to slow them down temporarily at a later time.
How exactly GM will implement the “overspeed” technique is not clear. Would workers in certain production areas need to work at an increased speed? If so, then I hope GM has thought of the potential quality implications. It may make more sense to add another production line to the plant and always have an empty line for maintenance work, although this would require an initial monetary layout to add proper tooling. Although perhaps the upfront spending would be a better choice than to suffer a potential drop in quality.
What’s more important, however, is that GM is carefully monitoring demand and increasing supply accordingly – and this is proof of both activities.
News of an extra shift being added to the Fairfax plant comes at a time when other plants are seeing temporary layoffs. What this means to us is that the news coming out of GM is not all that bad – it’s a pure supply and demand game – all about the numbers.
GM will have to make due with the Fairfax plant until at least 2012, when the Detroit-Hamtramck plant is scheduled to begin producing the Malibu. But we should note that by that time, the Malibu in question may be the next-generation model riding on the Epsilon 2 platform.
Let’s hope GM has tested the “overspeed” concept thoroughly to make sure quality doesn’t suffer. Otherwise, it would work to decrease the very increase in supply that has resulted in the increased production (got all that?). GM is expected to implement the new “overspeed” practice beginning the week of January 4, 2010.
[Source: Wall Street Journal via Autoblog]
It seems that this Saab sell-off/wind-down process will never come to an end. Here’s a brief summary of the events so far, in chronological order:
So here’s the latest development in the Saab saga: GM spokesperson Tom Wilkinson said that the automaker will not comment on reports suggesting an extension of the bidding deadline for Saab to January 7 and that the shut-down process will continue as planned: “During the wind down process we’ve heard from a number of people with proposals for Saab, and we’re going to evaluate the proposals as we start the wind down.”
Saab spokesperson Gunilla Gustavs gave a somewhat contradicting answer, saying GM’s decision to wind down Saab still stands while The General entertains offers, but the December 31 deadline is “no longer a magical date” where a GM decision should be expected.”
So there you have it: Saab will continue the wind down as planned, but it seems that GM doesn’t want to close slam any doors just yet as it peruses through offers it has received since announcing the wind down. That begs the question: what of the reported restart in Saab manufacturing?
[Source: Detroit Free Press]
Over the last few years, GM has been hard at work making its product line-up more competitive. In fact, its latest goal is to be the leader in every segment that its products compete. So it would only make sense that The General would want to show the pubic the fruits of its efforts and convince consumers that they should indeed buy GM’s vehicles rather than those from the competition. And that’s exactly what it’s planning on doing at the upcoming North American International Auto Show: The Detroit News is reporting that The General is working with COBO hall officials and the city of Detroit on setting up an area for consumers to test drive its vehicles.
The test drive course is reportedly part of GM’s completely revamped 85,000 square-foot floor space that contains a plethora of interactive display areas to show off GM’s latest technology (such as the Voltec powertrain) and vehicles. Since Pontiac, Saturn, Hummer, and Saab are no longer part of GM’s brand stable, the General will need to make some major changes to its exhibit for the upcoming show come January 2010.
Expect GM to only make the best (and most-recent) vehicles available for the test-drive. We’re thinking of products from its four core brands, such the LaCrosse, Enclave, and Regal from Buick, the entire CTS range and the SRX from Caddy, the Terrain and Acadia from GMC, and – last but definitely not least – Chevrolet’s Malibu, Camaro, Cruze, Spark, Aveo, Equinox, and Traverse. At the 2009 NAIAS, GM was giving consumers rides in certain vehicles such as the Chevy Tahoe Hybrid. By giving consumers the reigns to its vehicles would be a huge step up from that in terms of the experience as well as responsibility.
GM first began allowing customers to test drive its vehicles at the New England Auto Show earlier in 2009 – where it put over 1,400 people behind the wheel of various Cadillac models. The drive at the 2010 NAIAS is The General’s most wide-scale effort so far, but the automaker won’t be stopping there, as it’s planning to set up similar drives at several other major shows, including Chicago in February 2010.
Barring the aging Impala and the absence of the ATS and XTS from Cadillac’s line-up, GM already has the product it needs to compete in the marketplace. Its biggest task now is to change consumer perception of its brands and products. Giving people wheel time is the best way to show the car-buying public exactly how great its products are. And what better venue to do it than an auto show filled with people who are truly interested in automotive products and who have already payed a $12 admission fee to get in?
Lastly, GM will make the biggest test-drive push in major metropolitan areas where its product consideration is weakest. We applaud this effort and say put ‘em behind the wheel and let word-of-mouth do the rest!
[Source: The Detroit News]
GM is getting ready to show off a bunch of new toys, and there isn’t a better place to unveil its latest and greatest than at its hometown Detroit Auto Show (also known as the North American International Auto Show). Chris Preuss, GM vice president of communications, has confirmed via Twitter that we can expect something new from all of GM’s four core brands. Here is a brief rundown on what’s in store for GM: (more…)
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