This was the most expensive June on record, with the average U.S. incentive at $2,930 per vehicle sold, up 20 percent from a year earlier according to Edmunds' stats. Subaru continues to buck the industry and economy with June sales up 3 percent from June 2008. Here's a look at the June auto sales in order of volume:
General Motors delivered 176,571 vehicles in June, down 33.6 percent compared with a year ago. Year-to-date GM has sold 954,356 vehicles, down 40.5 percent from the first six months of 2008.
Ford, Lincoln and Mercury sales totaled 148,153 in June, down 11 percent versus a year ago. Year-to-date Ford 2009 sales are 745,752, a drop of 32.8 percent from the first six months of 2008.
Toyota Motor Sales, U.S.A., recorded June sales of 131,654 units, a decrease of 34.6 percent from last June bringing half-year sales to 770,449 vehicles down 37.5 percent from the first six months of 2008.
American Honda, including Acura, posted June vehicle sales of 100,420, a decline of 32.4 percent compared to June 2008 results. American Honda year-to-date sales of 530,778 represent a 33.1 percent decrease.
Chrysler Group LLC reported total U.S. sales for June of 68,297 units, a decrease of 42 percent compared with June 2008. Year-to-date Chrysler has sold 471,197 vehicles, a drop of 46 percent from 2008.
Nissan North America reported sales for June of 58,298, a decrease of 23.1 percent. Year-to-date Nissan sales are at 347,744, a drop of 33.4 percent from 2008.
Hyundai Motor America today announced June sales of 37,943, a 24 percent decline versus June 2008. Hyundai outsold Dodge in June for the first time, making Hyundai the number-six best-selling brand in the U.S. Year-to-date Hyundai sales are 204,686, is a drop of 11.4 percent from 2008.
Kia Motors America June sales of 26,845 units, a 5.1 percent decline from June 2008 and year-to-date sales of 147,404 is 6.5 percent lower than the first six months of 2008. Kia posted its fourth consecutive month of increased sales with June up 3 percent from May.
Volkswagen of America had June 2009 sales of 19,027, an 18 percent decrease from June 2008. Year-to-date VW sales are at 97,008, 16 percent lower than last year. Volkswagen's diesels posted their best sales month since their re-launch with 5,072 units, representing 26 percent of total sales. Separately, Audi U.S. sales for the month of June reached 7,524 units, its best sales month of 2009 and year-to-date has sold 37,845, a 15.9 percent fall from 2008.
The BMW Group in the U.S. (BMW and MINI combined) reported June sales of 20,849 vehicles, a decrease of 20.3 percent from the 26,155 vehicles sold in the same month of 2008. The BMW Group also reported a year-to-date sales volume of 114,448 vehicles, down 27.5 percent, compared to the first half of 2008.
Subaru of America set a sales record for the month of June as sales were 18,620, up 3-percent over June 2008. Year-to-date Subaru sales of 94,094 is just 1% lower than the first half of 2008.
Mercedes-Benz USA June sales of 16,271 including smart, with 15,155 Mercedes vehicles sold, a decline of 22.6 percent compared to June 2008. On a year-to-date basis, Mercedes sold 85,088 new vehicles, a decrease of 28.7 percent over the comparable period last year. smart USA recorded 1,116 sales in June bringing year to date sales of 8,567, a decline of 24.8 percent. Since its introduction in the United States, over 33,000 smart fortwos have been sold.
Mazda North American Operations reported June sales of 13,729, down 42.2 percent versus June of 2008. Year-to-date sales are 100,381, down 34.5 percent compared to 2008.
Volvo Cars of North America June sales were 7,042 units, a 0.6 percent gain over June 2008. Overall in North America (United States and Canada), Volvo has sold 33,172 units year-to-date, which represents a 33.8 percent decrease for the same period of 2008.
Mitsubishi Motors North America reported June sales of 4,362. Year-to-date, Mitsubishi has sold 26,467 vehicles.
Porsche sold 902 vehicles in the U.S. in June, a 66 percent drop For the first six months of the year, Porsche has sold 9,659 cars, down 36% from 2008.
The all-new 2010 GMC Terrain five-passenger crossover, introduced at the New York Auto Show in April, will have a starting price of $24,995 for the front-wheel drive model and $26,745 for the all-wheel drive version. Both prices include a $745 destination and freight charge. The Terrain, which replaces Pontiac's Torrent, has a base SLE-1 model that comes standard with GM's new 4 cylinder 2.4-liter direct-injection engine that produces 182-horsepower and 174 lb-ft of torque mated to a six-speed automatic transmission that delivers EPA-estimated highway fuel economy of 32 miles per gallon, with a city rating of 22mpg for the two-wheel drive and 20mpg city and 29 highway mpg for the all-wheel drive.
The Terrain offers a MultiFlex rear seat configuration that can optimized for either passenger legroom or nearly 64 cubic feet of cargo space behind the front seats. The base price also includes as standard, such features as an integrated rear-view camera system and six-speaker AM/FM/CD audio system with USB connectivity and XM satellite radio service, along with a full suite of safety equipment, including six airbags, StabiliTrak vehicle stability control, and OnStar.
The top-of-the-line SLT-2 trim level, which features leather seating, a premium Pioneer sound system, a power liftgate, sunroof and a special chrome appearance package, starts at $29,995 (including DFC) and has the Terrain's larger engine option, a 3.0-liter direct injection V6 engine that produces 264 horsepower and 222 lb-ft of torque. The two-wheel drive version is rated at 18mpg city/25mpg highway and the all-wheel drive at 17mpg city/24mpg highway. Other optional features include integrated navigation system and a rear-seat DVD infotainment system. The GMC website lists four trim levels, SLE-1, SLE-2, SLT-1 and SLT-2 with the 3.0-liter engine offered on all but the base SLE-1.
The GMC Terrain will be built at the CAMI assembly facility in Ingersoll, Ontario, Canada, and will arrive in showrooms in September.
The all-new 2010 Mercedes-Benz E-Class sedan and coupe go on sale today with Mercedes-Benz biggest marketing launch in recent years. The new E350 is powered by a 268 horsepower 3.5-liter V6 and starts at $48,600 and the E550 has a 382 horsepower 5.5-liter V8 starting at $56,300.
In the first broadcast spot called "What It's Made Of" (:30), the new E-Class sedan revisits its predecessors from generations past while the voiceover describes how that heritage of innovation -- which includes more than 50,000 crash tests and 889 safety patents and a world record for longevity and endurance -sets the stage for "one of the most technologically advanced automobiles on the planet."
The ninth generation E-Class campaign launches today around the theme "Everything We Know, Everything We Are: This is Mercedes-Benz." A six-week television commerical flight, including early morning news, primetime, MLB, PGA and cable programming which runs through July. A second wave starts again in September and October on primetime premieres and into the start of the NFL and college football seasons.
Lexus leads the overall nameplate rankings, averaging 84 PP100. Following in the rankings are Porsche, Cadillac (which moves from 10th rank position in 2008 to third in 2009), Hyundai (improves from 13th rank position in 2008 to fourth in 2009) and Honda, rounding out the top five.
The auto industry is making better quality cars according the J.D. Power and Associates 2009 Initial Quality StudySM (IQS) released today. Overall, the industry average for initial quality is 108 problems per 100 vehicles (PP100) in 2009, down from 118 PP100 in 2008. Initial quality for domestic brands has improved to an average of 112 PP100 in 2009 from 124 PP100 in 2008. Lower PP100 scores indicate a lower rate of problem incidences and higher quality.
New vehicles sold by Chrysler, Ford and GM's domestic brands have improved in initial quality by an average of 10 percent, compared with 2008, surpassing the 8-percent rate of improvement by the industry overall. Several all-new models in 2009, including the Hyundai Genesis, Kia Borrego, Toyota Venza and Volkswagen CC, perform considerably better than their respective segment averages. Many redesigned models in 2009 also show notable improvement from the previous generation--particularly the Acura TL, Ford F-150, Honda Pilot and Nissan Z.
Toyota captures 10 segment awards--more than any other corporation in the 2009 study--including five for Lexus, four for Toyota and one for Scion. Lexus receives awards for the IS, GS, GX, LS and LX models. The Lexus LX has the fewest quality problems in the industry, with just 52 PP100. Toyota models receiving awards in their respective segments are the 4Runner (in a tie); Sienna; Tundra (in a tie); and Yaris.
Ford receives three awards for the Edge (in a tie); F-150 (in a tie); and Mustang. Garnering two awards each are Nissan (Altima and Z); and Honda (CR-V, in a tie, and Ridgeline).
Also receiving segment awards are: Chevrolet Trailblazer (in a tie), Chrysler PT Cruiser Wagon (in a tie), GMC Yukon, Hyundai Elantra Sedan, Mercury Sable and Scion tC.
2009 Nameplate IQS Ranking
Problems per 100 Vehicles Lexus 84 Porsche 90 Cadillac 91 Hyundai 95 Honda 99 Mercedes-Benz 101 Toyota 101 Ford 102 Chevrolet 103 Suzuki 103 Infiniti 106 Mercury 106 Industry Average 108 Nissan 110 Acura 111 BMW 112 Kia 112 Volkswagen 112 GMC 116 Buick 117 Audi 118 Pontiac 118 Scion 118 Volvo 118 Saturn 120 Mazda 123 Lincoln 129 Subaru 130 Dodge 134 Jaguar 134 Mitsubishi 135 Chrysler 136 HUMMER 136 Jeep 137 SAAB 138 smart 138 Land Rover 150 MINI 165
The Senate passed a reduced $1 billion cash-for-clunkers bill sending it to President Obama to sign. The current bill was cut back from a one-year, $4 billion program after some senators were concerned that not enough is being done to assure more fuel-efficient vehicles will get on the road.
It means the program, that offers $3,500 to $4,500 cash vouchers to consumers who trade in their cars for new, more fuel-efficient vehicles, will run for less than four months instead of a year as first planned. The bill goes into effect a month after Obama signs the bill.
Scrappage programs in Western Europe have led to 500,000 additional passenger vehicles sold in the region from January through May 2009.
Trade in a car that has been registered to you and in use for at least one year, and has a combined city/highway fuel-economy rating of 18 or fewer miles per gallon and then buy a new car, priced at $45,000 or less that has a window sticker EPA rating of at least 4 mpg better than the old one and you receive a $3,500 voucher, at least 10 mpg better, and you get a $4,500 discount voucher from the dealer selling you the new vehicle.
My clunker is an SUV which has more lenient rules. SUVs need only get 2mpg better for $3,500 and 5mpg better for the $4,500. My average condition 1996 Toyota 4Runner with 120,000 miles has an Edmunds.com Private Party True Market Value (TMV) appraisal of $3,205. The trade-in value is $2,502 and the dealer retail value is $4,427. Edmunds.com rates my 4Runner at 17mpg so I need to find a vehicle that has a combined city/highway 22mpg to get the maximum $4,500 voucher.
Now the search begins for a new SUV costing $45,000 or less - no problem. Better than 22mpg and one the wife will like - problem, unless you're happy with a hybrid-powered SUV which are rated 28-32mpg or a compact SUV like a Honda CRV, Nissan Rogue or Suzuki Grand Vitara which just reach the 22mpg threshold. I see the 2010 Chevy Equinox is rated at 23-26mpg according to Edmunds.com. Then, on second thought, I could pay nothing and drive my clunker 4Runner for another 100,000 miles and keep my powder dry, money in the bank.
The all-new 2009 Nissan NISMO 370Z went on sale today for $39,130. The new, second-generation NISMO Z has 18 additional horsepower, a special sport-tuned suspension and a close-ratio 6-speed manual transmission with SynchroRev Match. The NISMO Z's standard 3.7-liter DOHC V6 engine with Variable Valve Event and Lift Control (VVEL) develops 350 horsepower and 276 lb-ft of torque (versus the standard 370Z Coupe's 332 horsepower and 270 lb-ft of torque), thanks in part to an exclusive free flow dual exhaust system, muffler tuning and an optimized Engine Control Module.
The well-equipped NISMO has only three accessories available - NISMO carpeted floor mats, illuminated kick plates and a carpeted trunk mat. The NISMO 370Z also features a refined 4-wheel independent suspension, a reinforced strut tower brace for enhanced body rigidity and a pair of performance body dampers to manage road-input vibrations. The NISMO-tuned suspension includes specially tuned springs, shock absorbers and stabilizer bars. Wider, unique 5-spoke 19-inch RAYS forged aluminum-alloy wheels are mounted with Yokohama ADVAN Sport Y-rated high-performance tires. Nissan Sport Brakes and a Viscous Limited-Slip Differential are also standard on the NISMO 370Z.
Barber Vintage Motorsports Museum - Birmingham, Alabama.
George Barber raced Porsches in the 1960's with 63 first place trophies. When his father died in the '70's he had to focus on running his family's milk business. He started collecting and restoring classic sports cars 20 years ago before turning his interest to motorcycles and opening a museum in 1995 on Birmingham, Alabama's Southside. Nearly six years ago, Mr. Barber moved the museum to a 740-acre spread with a beautifully designed building to brilliantly display 750 motorcycles at any one time from a total collection of 1,300. There's also as a substantial collection of Lotus and other race cars in the structure that sits along side a 2.38 mile racetrack that's on par or better than almost any F1 or Indy layout in the world. A large glass elevator in the middle of the building takes the cars and bikes to any of the 5 levels, including the restoration shop on the ground floor.
There are bikes from 16 countries that represent 143 different marques. The oldest I could find is this 250cc 1902 Steffey made-USA moped.
I was told by the museum staff that the most rare motorcycle on display is this Britten from New Zealand. John Britten who died in 1995 hand made only 13 of these motorcycles.
When I told a buddy of mine, a retired building design executive and motorcycle lover, that I was going to Birmingham, Alabama, he emphatically said "don't miss the Barber motorcycle museum". I can see why. Well done, George!
Flexibility was the topic of the Automotive News Conference in Birmingham, Alabama this week. While auto manufacturing factories slow with the weak economy and sales drop, car makers are finding ways to optimize operations during this industry breather. Manufacturing executives from Mercedes-Benz, Honda, Toyota, BMW, Hyundai and Volkswagen all gave accounts of how they are being flexible.
Bill Taylor, the retiring President & CEO of Mercedes-Benz U.S. International, who oversees the Tuscaloosa, Alabama, plant that makes the ML, GL and R Class vehicles for 130 countries, says "fast and flexible defines the industry today... continuous improvement is part of the solution." Taylor stressed the importance of training during these times and said that in January there were 500 job changes at his facility of 3,000 employees.
Chuck Ernst, Senior Vice President, Honda Manufacturing Alabama, says Honda engaged in "flexibility and reprogramming vs. retooling" 10 years ago and has been moving production between plants in reaction to the market demand ever since. He called April 10th of this year "a fun, flexible day" when one line at his plant made 2009 Pilots, 2009 Odysseys, Accords and 2010 Pilots in two 8 hour shifts. Ernst says downtime is being used to find ways to cut costs and revamp the facility by doing simple things to improve efficiency, like making new parts' racks.
Josef Kerscher, President, BMW Manufacturing, who ran BMW's Munich plant for ten years before taking over the factory at Spartanburg, South Carolina, three years ago, says they make 170,000 vehicles a year for the world. Specifically, the X5 and X6 Sports Activity Vehicles (SAVs) and soon production of a new X3 will move from Austria to Spartanburg. The Spartanburg plant, BMW's first outside of Germany, celebrates its 15th anniversary in December. Kerscher looks forward to making the 555 horsepower M version of the X6 and X6 hybrid and says they are "well underway with their plant expansion".
Don Jackson, President, Manufacturing, and Production, Volkswagen Group of America, boasted that VW's sales drop of 15.5% this year is much better than the overall industry. In "early 2011", VW will be making an all-new mid-size sedan at a factory under construction in Chattanooga, Tennessee, which will be their 62nd plant worldwide and "the model of flexibility" with room to expand. Jackson repeated the company's goal of nearly doubling Volkswagen's current global production to 11 million vehicles by 2018.
Steve St. Angelo, Senior Vice President of Toyota Motor Engineering & Manufacturing North America which covers seven plants in the U.S. and two in Canada, gave the most lively presentation, using props, slides and video to show how his plants are reducing costs. As examples, they are removing lighting and air conditioning in storage and work areas where there are no people. Toyota, which hasn't laid off any "team members" is using the extra time to create more space by reorganizing their floor plan and replacing old technology with new. St. Angelo showed videos of their "Quality Idol", where employees sing familiar tunes with words changed to describe Toyota's quality. Sounds like a good morale booster.
In Hollywood, while waiting to audition for a role or filling time before a call to perform, it's called the "hurry up and wait" scenario. Actors are taught to make the most of that precious time by using it to best advantage. For now, car makers are in the "hurry up and wait" mode - making the most of their downtime.
Chrysler Group LLC, the new Chrysler, will begin operations immediately with a subsidiary of Fiat getting a 20 percent equity interest on a fully diluted basis in the new company with that holding increasing in increments up to a total of 35 percent in the event that certain milestones mandated by the agreement are achieved, but Fiat cannot obtain a majority stake in Chrysler until all taxpayer funds are repaid. The U.S. Treasury and the Canadian Government have been issued an equity interest equal to 8 percent and 2 percent on a fully diluted basis, respectively.
Fiat has also entered into a series of agreements necessary to transfer certain technology, platforms and powertrains to the new Chrysler for small- and medium-sized cars, allowing the company to offer an expanded product line including environmentally friendly vehicles. Chrysler will also benefit from Fiat's management expertise in business turnaround and access to Fiat's international distribution network with particular focus on Latin America and Russia.
Sergio Marchionne was named Chief Executive Officer of Chrysler Group LLC in addition to his role as Chief Executive Officer of Fiat S.p.A. The new Chrysler will be managed by a nine-member Board of Directors, consisting of three directors to be appointed by Fiat, four directors to be appointed by the U.S. Government, one director to be appointed by the Canadian Government and one director to be appointed by the United Auto Workers' Retiree Medical Benefits Trust.
The Board is expected to name C. Robert Kidder as Chairman. The 64 year old Kidder has been Chairman and Chief Executive Officer of private investment firm 3Stone Advisors LLC since August 2006 and prior to that was a Principal of Stonehenge Partners, Inc., another private investment firm, from April 2004 to July 2006. He was Chairman and Chief Executive Officer of dairy, food and beverage company Borden, Inc. from 1995 to 2003 and was also a Founding Partner of Borden Capital Management Partners. Prior to that, he was at battery maker Duracell International Inc. from 1980 to 1994, assuming the role of President and Chief Executive Officer in 1984. He is also a director of investment company Morgan Stanley and drug firm Schering-Plough Corporation.
Jim Press, who came to Chrysler in 2007 after 38 years at Toyota Motor Corp., will be Marchionne's deputy CEO and a special adviser.
As previously announced, Chrysler has entered into an agreement with GMAC Financial Services to provide automotive financing products and services to the Company's North American (NAFTA) dealers and customers. GMAC Financial Services will be the preferred lender in North America for Chrysler, Jeep and Dodge dealer and consumer business, including wholesale of new and used vehicles as well as retail.
The all-new Infiniti G37 Convertible starts with an MSRP of $43,850 for the G37 Convertible and $43,900 for the G37 Convertible Sport 6MT. The G37 Convertible goes on sale June 19th.
The first-ever G Convertible has a three-piece power retractable hardtop and comes equipped with a standard 325-horsepower 3.7-liter V6, with a choice of a 7-speed automatic transmission with available magnesium paddle shifters or a close-ratio 6-speed manual transmission, like the G37 Sedan and G37 Coupe.
Penske Automotive Group has signed a Memorandum of Understanding with General Motors to obtain the rights to the Saturn brand, acquire certain assets including the Saturn parts inventory, and have the right to distribute vehicles and parts through the Saturn Dealership network, if the transaction is completed which if all goes well is expected to occur during the third quarter of this year. General Motors would continue to provide Saturn Aura, Vue and Outlook vehicles, on a contract basis, for an interim period.
"We have agreed upon a framework that we believe will build momentum for the Saturn brand," said Penske Automotive Group Chairman Roger Penske. "Saturn has a passionate customer base and outstanding dealer network. For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths."
Saturn began selling cars in 1990 and has sold more than 4 million vehicles. More than 80 percent of those vehicles are still in operation, according to data from R.L. Polk.
Penske Automotive Group operates 310 retail automotive franchises, representing 40 different brands and 25 collision repair centers. Penske is also the exclusive distributor of the smart fortwo through its wholly-owned subsidiary smart USA Distributor.
For many companies May sales were up over April but still well below May 2008 sales. Ford sold more vehicles than Toyota in May while Chrysler slipped to fifth place behind Honda. Here are the May 2009 sales and year-to-date numbers in order of volume:
General Motors delivered 191,875 vehicles in May, it's best month of 2009, down 29.6 percent compared with a year ago. Year-to-date GM has sold 777,785 vehicles, down 41.9 percent from the first five months of 2008.
Ford, including Lincoln & Mercury, had sales of 155,954, its highest sales for any month since July 2008, down 24.3 percent from May 2008. Ford, Lincoln and Mercury market share grew to highest level since 2006. Year-to-date Ford sales are 597,599, down 36.6 percent from the first 5 months of 2008.
Toyota Motor Sales, U.S.A., including Lexus, reported May sales of 152,583 vehicles, a decrease of 38.4 percent from last May. Year-to-date Toyota has sold 638,795 vehicles down 38 percent from last year.
American Honda May vehicle sales of 98,344, was a decline of 39.2 percent compared to May 2008. Year-to-date Honda has sold 430,358, a drop of 33.3 percent from 2008.
Chrysler LLC reported May U.S. total sales of 79,010, down 30% from May 2008. Year-to-date Chrysler has sold 402,900 vehicles, a drop of 46 percent from 2008.
Nissan North America reported May sales of 67,489, a decrease of 33.1 percent from May 2008. Year-to-date Nissan sales are at 289,446, a drop of 35.2 percent from 2008.
Hyundai Motor America sales of 36,937 vehicles in May, was a 20 percent decline versus May 2008. Year-to-date Hyundai sales of 166,743, is a drop of just 7.9 percent from 2008.
Kia Motors America sold 26,060 vehicles in May, a decline of 16 percent from May last year and year-to-date Kia sales are at 120,559, down 6.8 percent from 2008.
Volkswagen of America had May 2009 sales of 19,568, a 12.4 percent decrease from May 2008. Year-to-date VW sales are at 77,981, down 15.5 percent from last year. Separately, Audi of America sold 7,503 units in May down 12.1 percent from May 2008 and year-to-date has sold 30,321, a 17.7 percent fall from 2008.
BMW Group in the U.S. (BMW and MINI combined) reported May sales of 22,993 vehicles, a decrease of 27.7 percent from the same month of 2008. Year-to-date BMW sales are 93,599, a fall of 29 percent from last year.
Subaru of America sold 17,505 all-wheel drive vehicles in May, just 5 percent less than May 2008 and year-to-date Subaru sales of 74,686 are down just 2 percent from 2008.
Mazda North American Operations reported May 2009 sales of 16,718, down 40.1 percent versus last year, and year-to-date sales of 86,652, down 32 percent.
Mercedes-Benz, including smart, had May sales of 16,303, a decline of 33.4 percent. smart USA sales were 1,169 in May. Year-to-date Mercedes' sales are at 69,933, down 29.9 percent from last year.
Mitsubishi Motors North America had May 2009 sales of 4,352.
American Suzuki May 2009 vehicles were 2,585, a 75 percent tumble from May 2008. Year-to-date Suzuki has sold 20,259 vehicles in the U.S. down 56 percent from 2008.
Porsche U.S. sales fell to 1,979, a 29 percent drop from May 2008.Year-to-date Porsche has sold 8,757, down 30 percent from the first five months of 2008.
High union, health and retirement costs have been plaguing General Motors for years and now the Court will clean up the mess to make the world's former largest automaker leaner and competitive. Bankruptcy should have filed six or eight months ago. GM has needed significant union concessions for years and the only way to jolt them into giving up enough was bankruptcy. The Obama government had to give a non-bankruptcy a try because union workers are a big part of the Democrats' voter base. GM, "Government Motors", will be 60% -owned by the U.S. government or, really, us - the taxpayers.
GM says it "reached agreements with the U.S. Treasury and the governments of Canada and Ontario to accelerate its reinvention and create a leaner, stronger "New GM" positioned for a profitable, self-sustaining and competitive future."
Under its plan, GM will sell substantially all of its global assets to the New GM with approximately 3,600 U.S. dealers. GM dealers will continue to service GM vehicles and honor GM warranties, and U.S. and Canadian government guarantees of manufacturers' warranties are designed to reassure consumers.
None of GM's operations outside of the U.S. are included in the U.S. court filings or court-supervised process, and these filings have no direct legal impact on GM's plans and operations outside the U.S. GM confirmed that all business operations are continuing without interruption in its Europe; Latin America, Africa and the Middle East; and Asia Pacific regions.
The New GM will focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand. The GM News Release claims that they will "effectively close the competitive gap in active worker labor costs compared with transplant auto manufacturers."
The GM news release says they'll "achieve its lower structural costs in part by further reducing 2009 salaried employment in North America from its year-end total of 35,100 to approximately 27,200, and continuing to improve its balance sheet by reducing retiree benefits for salaried retirees and non-UAW hourly retirees."
New GM expected to launch as an independent company approximately 60 to 90 days after June 1, 2009
General Motors will have an announcement on Monday - bankruptcy or no bankruptcy. GM, which has received $19.4 billion in federal loans, failed to persuade enough bondholders to accept a debt-for-equity swap of $27 billion in unsecured debt for 10 percent of the company's stock. Not only are bondholders losing a fortune, there is no promise on what the stock of the restructured company will be worth. This essentially means that the stage is set for the largest-ever U.S. industrial bankruptcy.
Can GM get 90 percent bondholder support to stave off bankruptcy before Monday? What would sway them in favor after so many rejections? Maybe a larger piece of the new company? GM reached an agreement on Tuesday with the leadership of the United Auto Workers (UAW) union.
Government restructuring outside of the courts or court-run Chapter 11 bankruptcy, GM will emerge much leaner. GM employees say "they are fighting hard" focusing on their core brands with fewer dealers and fewer nameplates. The news on Hummer's winning bidder will be followed by the announcement of new owners for GM's Saturn and Opel brands and the Swedish's government's decision on the fate of Saab.
The June 1st news on the bankruptcy decision will come a day before the May auto sales are released, which, based on yesterday's report that the Conference Board's index of consumer confidence for May jumped to 54.9 from 40.8 in April, could mean good sales data will come a day too late to save GM from bankruptcy.
In vehicle news - Cadillac announced today that the 2010 SRX Crossover, scheduled to begin production this summer, will be priced starting at $34,155 coming with all-wheel-drive and a 3.0-liter Direct Injection V6 engine. Later this summer, CTS Sport Wagon arrives with the same standard 3.0-liter Direct Injection V6 engine with highway fuel economy is estimated to reach 28 mpg.
