Official GM Financial Issues Thread

[Elmo187]

Source: Motor Authority

Everyone is watching with bated breath as General Motors teeters on the brink of bankruptcy, wondering if Chrysler's 'surgical' run through the courts isn't a practice session for GM's own. The latest victims of GM's preparations for a smaller, lighter future appear to be the 2010 Chevrolet Impala SS and 2010 Cobalt SS Sedan. Neither will be built.

The information, revealed through GM's online ordering guide and caught by the fans at GM Inside News, shows no order codes for either the Impala SS or Cobalt SS Sedan for the 2010 model year. The Cobalt SS Coupe is still available, however.

With all that's going on both in the public eye and behind the scenes at GM, it's not really a surprise, but on the flip side, GM hasn't announced the deaths of either car yet. Still, it's likely a business decision based on order and sales figures, so it's hard to argue that GM is abandoning its fans - if they were there buying the cars, they'd probably still be available.

But it'll be hard not to miss the Cobalt SS Sedan - it was one of the best cars in GM's lineup, and one of the best turbo-four four-doors sold in America.

somehow i don't think the Impala SS will be gone for long. the W-body platform has been around for 11 years, so i see it getting phased out and being replaced with the Zeta or Epsilon II platform.

[jjo]

That's too bad Elmo (Demise of Cobalt SS sedan). Good thing GM
kept the coupe...Both remarkable domestic compacts.

Chock full of "bang for the buck" ! 

[LSixer]

I believe its time for GM to make some radical changes as in quit resurrecting car names and move on. The new boss at fiat did that, he rolled out interesting new cars that people actually wanted, started fresh. Apparently he is doing the right thing.

The only car I wish fiat would resurrect would be the X19. I would be the first inline to buy one for sure.

[Elmo187]

i'm just gonna go ahead and change the name of this thread....

GM cuts Cadillac STS-V and Pontiac G6 GXP from MY2010 lineup

Source: Motor Authority

General Motors is trimming its model lineup to get rid of its underperforming sport models across all its brands. Just yesterday, it was revealed that Chevrolet will no longer offer the Impala SS variant for 2010, nor will it offer the 2010 Cobalt SS sedan.

Following in the footsteps of these two will be two more GM models facing the axe, for 2010 at least. These include the Cadillac STS-V, the high-performance variant of the STS, and the Pontiac G6 GXP.

The 470hp (350kW) STS-V has been a sales disappointment for Cadillac, and considering that it retails for a hefty $80,000 it’s not difficult to see why. The cancellation of this product means that Cadillac's flagship performance car will be the CTS-V, which has silenced a number of critics with its reasonable price and scintillating performance.

Also facing the chopping block for 2010 will be Pontiac's G6 GXP. The G6 GXP was the most powerful model in the G6 lineup, featuring close to 250hp (186kW). We doubt too many people would be shedding a tear over it, however, especially considering Pontiac will be phased out by the end of 2010.

But GM is not totally writing off performance. There remains the SS trim for the 2010 Chevrolet Camaro, Cadillac still has the CTS-V, and there's always the Z06 and ZR1 versions of the Corvette supercar.

again, same situation. STS-V is probably only going to be taking a break until Holden finalizes the deal with GM to keep using the Zeta platform. if BMW does come out with the suspected 7-Series M, then i don't at all see Cadillac sitting back and watching from the sidelines.

[LSixer]

Wait a tick, I thought GM was dropping pontiac altogether.    Did I miss something?

[Elmo187]

Wait a tick, I thought GM was dropping pontiac altogether.    Did I miss something?

they are, but they still have a full model year ahead of them before they drop from GM. Pontiac won't be gone until the end of 2010.

[LSixer]

Duh, I fail at reading. The last sentance says so. They need to spice up the chevy line with more new styles and models that are going to excite the buyers. Easier said then done I know.

[Elmo187]

GM claims Camaro as "core model"; says Solstice/Sky not yet dead

Source: Motor Authority

Though bankruptcy is looking more and more like the way General Motors will go, the company is fighting to preserve its most adored models - one way or another. In the case of the Camaro, the car will live on within GM as a 'core model' says CEO Fritz Henderson. The Pontiac Solstice and Saturn Sky roadster duos may yet see more action, though in a different way.

The Camaro is an iconic nameplate for Chevrolet and the car itself is a 'core model' in addition to its halo vehicle status - or at least that's what Fritz Henderson thinks. “I think the Camaro is a wonderful halo vehicle for Chevrolet, but it can also be a core model,” Henderson said.

When most people think of 'core' model, they thinking of the Camry for Toyota, the Accord for Honda and the Maxima for Nissan - bread and butter sales vehicles. The Camaro does not fit that mold.

But maybe it could, with the right price and packaging in a V6 option. Still, with its coupe body style and highly polarizing looks, it's not likely to fill the mass-market role of a true core model. But Camaro fans will be glad to hear the label applied to their baby, since it means the company is serious about keeping it alive.

Two other cars GM is seriously fighting for are the Pontiac Solstice and Saturn Sky. While Pontiac is already on life support - with the plug to be pulled soon - and Saturn is being shopped to potential buyers, AutoWeek is reporting that GM has said it would be willing to sell the Sky/Solstice plant and rights as a package to a buyer interested in just the two sports cars.

That offers a potentially very attractive buy for a niche manufacturer or a company looking to add some sport to its lineup without acquiring all the bloat or confusion of the full Saturn or Pontiac brands. “If someone were to approach with a proposal that made good sense for our people, we’d be open to it,” said Henderson.

here's my list of who should buy them:
Saleen - they are the #1 manufacturer of heavily modified Mustangs and one of the best supercars on the road. if they put these 2 in their lineup, then they'd have an entry level lineup. what better way to make a name for yourself in the manufacturer world than to put 2 incredible roadsters in your lineup.

Penske Auto Group - Mr. Penske has already expressed his interest in buying Saturn. so why not just purchase the whole lineup PLUS the Solstice?

[LSixer]

You can add fiat to that short list. There is no logical reason that just because they have chrysler that they cannot acquire a former GM product. With the buying spree fiat is on, that just may come to fruition.

[Elmo187]

Fiat has already denied that they were going to buy Opel. so i don't see them buying any other part of a GM subsidary anytime soon.

[LSixer]

I have not heard anything to indicate they would be interested. Simply stated they appear to have the resources that would allow them to pick up that division whereas most other companies (lets not go towards tata) most likely do not have the resources to purchase and make a viable go at it. The CEO of fiat has said in interviews that he wants to make fiat a dominant world player. One of the easiest ways to go about that is to acquire a company that has a foothold, and a somewhat decent reputation then build on it. If I were him, I would not rule out buying pontiac, but, saturn, not sure about that one.

[Elmo187]

Pontiac is dead. there's been a bunch of dealership franchises that offered to purchase Pontiac, and GM said it wasn't for sale. so Fiat buying it is out of the question. if Fiat were to buy Saturn, the smart thing to do would be to purchase Opel also. therefore, if Fiat wanted to save money by not making totally new cars, they could still use Opel as a source to build Saturns. gotta remember, the majority of the Saturn lineup are Opels. BUT Fiat has already said they won't purchase Opel.

[Elmo187]

Magna-Saturn-Opel alliance could prove formidable

Source: Motor Authority

A lot of discussion goes into the topic of finding synergies within the auto industry, but few big, successful examples show what that looks like. The disastrously failed attempts - DaimlerChrysler, for example - are more well-known. But Magna's gambit to win Opel and now Saturn from the rapidly disintegrating General Motors may prove to be an example of what happens when things go right.

Magna was one of three bidders that submitted a plan to takeover Opel's operations yesterday. While it will have to beat Fiat to the deal, there is already tension both in Italy and Germany over Fiat's interest, potentially leaving Magna as a best compromise choice.

Over the last several years, Saturn has been working hard to align itself with and base its lineup on Opel's offerings. That means a lot of the work in getting the two brands on the same page has already been done.

That just leaves Magna to put the two pieces together into a puzzle that's already been worked out. Of course, as The Deal's Matthew Wurtzel points out, that means GM would essentially be making a competitor out of its cast away parts.

Magna's investment in Opel would only secure a minority stake, however, with Russia's GAZ group and a consortium of banks also buying in. What that might mean for a Magna-Opel-Saturn mega-brand isn't clear, but it certainly adds complications - potentially disastrous ones.

if Opel and Saturn fell under the same company, then we'd still be seeing rebadged Opels here. which is a VERY good thing for Saturn.

[Elmo187]

GM John Hancocks agreement to sell Hummer to unknown investor

Source: Motor Authority

General Motors first confirmed the sale of its Hummer brand last August and followed up the announcement with the release of an official document for potential buyers just one month later. Poor sales, growing public concern for the environment and the recession have all added up to weaken Hummer's sales chances, but there is hope that a company based in emerging markets like China, India or Russia could still be interested.

Today, GM, which entered bankruptcy proceedings earlier this week, confirmed that it has entered into a memorandum of understanding (MoU) with a potential buyer for Hummer. The sale is expected to close by the end of third quarter of this year and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The deal is expected to secure more than 3,000 U.S. jobs in manufacturing, engineering and at Hummer dealerships around the country. The transaction also includes plans by the investor to aggressively fund future Hummer product programs, including possibly a compact H4 model.

Under terms of the MoU, the identity of the purchaser and proposed financial terms of the agreement are not being released at this time. As part of the proposed transaction, Hummer will continue to contract vehicle manufacturing and business services from GM during a defined transitional time period. For example, under the proposed agreement, GM’s Shreveport Assembly plant would continue to assemble the H3 and H3T through at least 2010.

Hummer brand vehicles sold 62% fewer vehicles in May 2009 than they did the year before, and overall sales are down almost 40% through the first half of the year. Hummers dealers have expressed their displeasure with the public way GM has chosen to handle the sale, arguing that airing the nameplate's dirty laundry won't help it weather the short term. Whether the brand can survive in the long term - whoever ends up owning the name - will depend on its ability to adapt to the changes facing the industry as a whole.

[clutch]

Its been confirmed, Sichuan Tengzhong Heavy Industrial Machinery Company Ltd bought Hummer for somewhere between $100 and $500 million USD.


All I have to say is, when China starts buying American symbols like the Hummer (because lets face it, the Humvee is the red, white, and blue in its purest form) its when I begin to think of bending over and calling the Reds daddy.


*Sigh*

I'd rather have it dead.



Carry on.