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	<title>P&#38;A Magazine &#187; General Motors</title>
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		<title>G.M. Looks to Luxury Cars for Higher Profit</title>
		<link>http://pa-magazine.com/industry-news/g-m-looks-to-luxury-cars-for-higher-profit/</link>
		<comments>http://pa-magazine.com/industry-news/g-m-looks-to-luxury-cars-for-higher-profit/#comments</comments>
		<pubDate>Tue, 10 Jan 2012 23:54:53 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Auto Industry News]]></category>
		<category><![CDATA[Buick Encore]]></category>
		<category><![CDATA[Cadillac ATS]]></category>
		<category><![CDATA[General Motors]]></category>
		<category><![CDATA[GM]]></category>
		<category><![CDATA[luxury cars]]></category>

		<guid isPermaLink="false">http://pa-magazine.com/?p=11020</guid>
		<description><![CDATA[DETROIT — After a humbling bankruptcy and $50 billion government bailout in 2009, General Motors has rebounded with steady profits and a fresh lineup of competitive vehicles. But the next stage of the comeback poses new challenges for the nation’s largest automaker as it tries to make up for lost time when it suspended many ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/g-m-looks-to-luxury-cars-for-higher-profit/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>DETROIT — After a humbling bankruptcy and $50 billion government bailout in 2009, General Motors has rebounded with steady profits and a fresh lineup of competitive vehicles.</p>
<p>But the next stage of the comeback poses new challenges for the nation’s largest automaker as it tries to make up for lost time when it suspended many of its product programs. The company started to catch up last year by turning out new small cars and mainstream sport utility vehicles. Now G.M. is focusing on beefing up its roster of higher-profit, luxury models for its Buick and Cadillac divisions, reported <em>The New York Times</em>.</p>
<p>On Tuesday, G.M.’s strategy was on display here at the North American International Auto Show when it presented a new small Buick S.U.V. called the Encore that goes on sale next year. Earlier, G.M. introduced the much-anticipated Cadillac ATS, a compact sedan intended to compete with top-selling luxury models from BMW and Mercedes-Benz.</p>
<p>While G.M.’s sales in the United States increased 13 percent last year, its executives acknowledge that more growth was needed to improve profits in the coming year. With Europe and other international markets in the doldrums, G.M. is under pressure to further broaden its product lineup and increase margins in its home market.</p>
<p>“We are making our money here in the U.S., and we’re going to have to keep doing it,” said Mark L. Reuss, president of G.M.’s North American division.</p>
<p>Luxury cars like the Cadillac ATS can provide thousands of dollars more in profit than a more mainstream product.</p>
<p>Mr. Reuss said that expanding the Buick and Cadillac brands was essential to improving G.M.’s overall results. G.M. is also introducing a full-size Cadillac sedan this year, as well as a compact Buick called the Verano.</p>
<p>Industry analysts were impressed by the quality and design of the new G.M. entries on display in Detroit, but questioned whether their incremental sales would be enough to increase the bottom line.</p>
<p>“They’re really nice products, but can they sell enough to bring in the revenue?” asked Ron Harbour, head of the automotive unit of the consulting firm Oliver Wyman. “What they really need is to sell more of the volume products like the Silverado pickup and the Chevrolet Malibu midsize sedan.”</p>
<p>G.M.’s big crosstown rival, the Ford Motor Company, is also increasingly dependent on the American market to contribute the bulk of its profits. But Ford avoided bankruptcy and continued to invest in new vehicles, even when the economy soured.</p>
<p>In addition, Ford’s reputation soared with consumers because — unlike G.M. and Chrysler — it was able to survive without financial help from American taxpayers.</p>
<p>“By not going into Chapter 11, we were able to preserve our product-cycle plan, keep our management team intact, and maintain continuity,” said Lewis Booth, Ford’s chief financial officer. “We never missed a beat.”</p>
<p>G.M. has tried hard to distance itself from the bailout by the Obama administration. Its 2010 public stock offering took away some of the stigma of being “Government Motors.”</p>
<p>But the Treasury Department still owns 26 percent of the company. And because G.M.’s stock price has been mired in the low $20s after going public at $33 a share, the government has been reluctant to sell the remaining stake at a loss.</p>
<p>So G.M. is now in the position of relying on North American profit to carry the company financially and convince investors it deserves a better stock price.</p>
<p>Although G.M. sales are growing globally, the company’s chief executive, Daniel F. Akerson, said he is more focused on improving financial results than simply adding sales around the world.</p>
<p>“We need to focus on profits and margins and not necessarily try to post numbers on the board,” he told reporters at the auto show.</p>
<p>G.M. has had seven consecutive profitable quarters, through the third quarter of last year, which was its last reporting period. But the year ahead will be tough because virtually all automakers are looking to earn much of their profits in the resurgent American market.</p>
<p>No one will be pulling harder for G.M.’s success than President Obama, who counts the rescues of G.M. and Chrysler among the successes of his administration’s economic policies.</p>
<p>As if to underscore the importance of Detroit’s revival to the administration, three cabinet secretaries — commerce, energy and transportation — were among the visitors to the media previews at the auto show this week.</p>
<p>G.M. executives, however, seemed to be weary of questions about the government’s role in its comeback and the taxpayers’ continued ownership stake in the company.</p>
<p>Mr. Reuss said he was concerned that the G.M. bailout would be constantly resurrected as a political issue in this year’s presidential election.</p>
<p>“The only thing I can control,” he said, “is the performance of North America with great products, great pricing and disciplined production.”</p>
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		<title>G.M. Offers to Buy Back Hybrid Volts From Owners</title>
		<link>http://pa-magazine.com/industry-news/g-m-offers-to-buy-back-hybrid-volts-from-owners/</link>
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		<pubDate>Thu, 01 Dec 2011 19:24:06 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Auto Industry News]]></category>
		<category><![CDATA[Chevrolet Volt]]></category>
		<category><![CDATA[General Motors]]></category>
		<category><![CDATA[Volt battery]]></category>
		<category><![CDATA[Volt fire risk]]></category>

		<guid isPermaLink="false">http://pa-magazine.com/?p=10694</guid>
		<description><![CDATA[DETROIT — In a rare move, General Motors said Thursday that it would buy back Chevrolet Volts if owners were concerned about fire risks. It also promised to comply with any changes to its battery pack recommended by federal regulators. In an interview with The Associated Press, G.M.’s chief executive, Daniel F. Akerson, defended the ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/g-m-offers-to-buy-back-hybrid-volts-from-owners/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>DETROIT — In a rare move, General Motors said Thursday that it would buy back Chevrolet Volts if owners were concerned about fire risks. It also promised to comply with any changes to its battery pack recommended by federal regulators.</p>
<p>In an interview with The Associated Press, G.M.’s chief executive, Daniel F. Akerson, defended the safety of the plug-in hybrid vehicle but said the automaker would purchase Volts from unsatisfied customers, reported <em>The New York Times</em>.</p>
<p>A G.M. spokesman, Rob Peterson, confirmed the buyback offer. “If there’s a customer that wants to sell back their Volt, we’ll buy it back from them,” Mr. Peterson said.</p>
<p>Such a buyback is unusual for car companies, which typically institute recalls when regulators or customers report problems with cars or parts. Ford, however, offered to buy back older model Windstar vans last year after investigations into rear axle problems.</p>
<p>The Volt has come under scrutiny after the National Highway Transportation Safety Administration said on Nov. 25 that it had opened a defect investigation into the car’s 400-pound battery pack.</p>
<p>The company on Monday offered free loaner cars to all Volt owners while a federal investigation continued into the potential for postcrash fires in the car’s lithium-ion battery.</p>
<p>Two Volt batteries caught on fire after crash simulations, the agency said. One fire occurred three weeks after the battery was damaged, and a more recent test resulted in a fire one week later. Another pack emitted smoke and a spark in the aftermath of a crash test.</p>
<p>In a separate interview with Reuters, Mr. Akerson said that G.M. would make changes to the Volt’s battery pack if they were recommended by federal officials.</p>
<p>Mr. Peterson said the company would alter the packs “if there’s an engineering solution required.”</p>
<p>Some Volt owners are not concerned about the inquiry. “It just has to be treated carefully in the event of a crash. I really am not worried,” Eric Rotbard, a Volt owner who is a lawyer in White Plains, said in an interview on Monday. “We just have to get more comfortable with the technology. It doesn’t seem to be any less safe to me.”</p>
<p>The latest developments came the same day that G.M. reported that November was the best month for Volt sales since the car was introduced late last year.</p>
<p>G.M. said it sold 1,139 Volts in November, bringing the year’s total to 6,142.</p>
<p>However, the company acknowledged for the first time that it would not achieve its target of selling 10,000 Volts this year, even after allowing dealers to sell demonstration models last month to increase inventory.</p>
<p>The head of G.M.’s Chevrolet division, Alan Batey, said that missing the sales target did not diminish the car’s positive effect on the brand.</p>
<p>“This vehicle is more than just how many do we sell every month,” Mr. Batey said in a conference call with reporters. “It is a magnet around everything we’re trying to do to showcase the brand.”</p>
<p>The Volt was the industry’s top-scoring model in this year’s Consumer Reports customer-satisfaction survey, the publication said Thursday, with 93 percent of owners saying they would buy one again.</p>
<p>G.M. executives have repeatedly defended the safety of the Volt since the federal inquiry opened, noting that there have been no reports of fires in real-world crashes.</p>
<p>The company has asserted that the bigger issue is how the lithium-ion battery is handled by emergency personnel and maintenance technicians after an accident.</p>
<p>G.M.’s product development chief, Mary Barra, said Monday that the car’s battery should be depowered immediately after a collision to avoid any possibility of a fire.</p>
<p>“This is not a conventional automobile,” said Joseph Phillippi, an industry analyst with the firm Auto Trends. “We are talking about high-voltage batteries, and they need special treatment.”</p>
<p>So far, 33 Volt owners have requested a loaner vehicle since the offer was made, and 230 people have contacted their dealers with questions, Mr. Batey said.</p>
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		<title>GM Offers Oregon, Washington Drivers Auto Insurance as Standard Feature</title>
		<link>http://pa-magazine.com/industry-news/gm-offers-oregon-washington-drivers-auto-insurance-as-standard-feature/</link>
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		<pubDate>Thu, 07 Jul 2011 20:51:21 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Auto Industry News]]></category>
		<category><![CDATA[Buick]]></category>
		<category><![CDATA[Cadillac]]></category>
		<category><![CDATA[Chevrolet]]></category>
		<category><![CDATA[General Motors]]></category>
		<category><![CDATA[GMC]]></category>
		<category><![CDATA[incentives]]></category>
		<category><![CDATA[insurance]]></category>
		<category><![CDATA[manufacturer incentives]]></category>
		<category><![CDATA[MetLife]]></category>

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		<description><![CDATA[DETROIT &#8211; GM announced that drivers in Oregon and Washington that purchase a new 2010, 2011 or 2012 Chevrolet, Buick, GMC or Cadillac vehicle between now and September 6 will receive a one-year insurance policy from MetLife Auto &#038; Home free of charge. “We want to give residents of Oregon and Washington another reason to ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/gm-offers-oregon-washington-drivers-auto-insurance-as-standard-feature/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>DETROIT &#8211; GM announced that drivers in Oregon and Washington that purchase a new 2010, 2011 or 2012 Chevrolet, Buick, GMC or Cadillac vehicle between now and September 6 will receive a one-year insurance policy from MetLife Auto &#038; Home free of charge.</p>
<p>“We want to give residents of Oregon and Washington another reason to discover Chevrolet, Buick, GMC and Cadillac vehicles,” said Chris Perry, U.S. vice president of General Motors marketing. “We have new products like the Chevrolet Cruze, Buick Regal, GMC Terrain and Cadillac CTS Coupe that are now even more appealing with a year’s worth of insurance.”</p>
<p>The complimentary auto insurance includes both liability and physical damage coverage and exceeds requirements in the two states, according to GM. The company is currently testing auto insurance as a standard feature to determine consumer appeal, reported <em>F&#038;I and Showroom</em>.</p>
<p>“This offer enhances the vehicle’s value proposition because our policy is considered one of the most comprehensive in the industry,” said Bill Moore, president of MetLife Auto &#038; Home. “Our new car replacement feature is a benefit not found in most auto policies.”</p>
<p>The policy covers the vehicle and anyone who drives it with the owner’s permission for a full year from the date of purchase as long as the original purchaser continues to own or lease the vehicle, according to GM. The policy is not available on vehicles purchased or leased for certain commercial or fleet purposes.</p>
<p>Under MetLife Auto &#038; Home’s auto policy, if a new car is damaged beyond repair within the car&#8217;s first year or first 15,000 miles, the company will repair or replace the vehicle with a new vehicle without deducting for depreciation.</p>
<p>The policy is available only to Oregon and Washington residents with valid driver’s licenses and who title their vehicle in those states. Vehicle owners also can renew the MetLife insurance at the end of one year.</p>
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		<title>U.S. Sales Rise 17 Percent As Demand Holds Up Against Headwinds</title>
		<link>http://pa-magazine.com/industry-news/u-s-sales-rise-17-percent-as-demand-holds-up-against-headwinds/</link>
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		<pubDate>Fri, 01 Apr 2011 12:57:11 +0000</pubDate>
		<dc:creator>egesualdo</dc:creator>
				<category><![CDATA[Auto Industry News]]></category>
		<category><![CDATA[American Honda]]></category>
		<category><![CDATA[Chrysler Group]]></category>
		<category><![CDATA[Ford Motor Co.]]></category>
		<category><![CDATA[General Motors]]></category>
		<category><![CDATA[Nissan Motor Corp]]></category>

		<guid isPermaLink="false">http://pa-magazine.com/?p=7622</guid>
		<description><![CDATA[DETROIT &#8211; U.S. auto sales rose 17 percent last month and again topped an annual selling rate of 13 million as consumers fended off concern over rising gasoline prices and the effects of Japan&#8217;s earthquake. Kia, Chrysler and Hyundai posted some of the biggest gains as the industry marked its seventh straight monthly advance of ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/u-s-sales-rise-17-percent-as-demand-holds-up-against-headwinds/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>DETROIT &#8211; U.S. auto sales rose 17 percent last month and again topped an annual selling rate of 13 million as consumers fended off concern over rising gasoline prices and the effects of Japan&#8217;s earthquake.</p>
<p>Kia, Chrysler and Hyundai posted some of the biggest gains as the industry marked its seventh straight monthly advance of 10 percent or more. The seasonally adjusted annual sales rate of 13.1 million was the second highest since the cash-for-clunkers incentives of 2009, reported <em>Automotive News.</em></p>
<p>&#8220;We believe the industry and economy are moving in the right direction,&#8221; said Bob Carter, general manager of the Toyota division.</p>
<p>The March results topped most analysts&#8217; forecasts, while some said the parts shortages and plant closings caused by the March 11 quake would begin to take a toll on sales this month.</p>
<p>Ford Motor Co. outsold rival General Motors in the United States last month for the second time since 1998. Ford was aided by a 21 percent jump in truck sales. Its overall gain of 16 percent was its biggest this year.</p>
<p>Ford last outsold GM in February 2010 and before that, July 1998, when GM was hobbled by a strike at former parts unit Delphi.</p>
<p>Chrysler Group said its March sales rose 31 percent to the highest level in three years, with Dodge brand sales jumping 50 percent.</p>
<p>Among major automakers, only Toyota Motor Corp. lost ground last month. Its sales fell 6 percent in comparison to March 2010, when it recorded a 41 percent increase while fighting back from its recall crisis.</p>
<p>Nissan Motor Corp. posted a 27 percent increase in monthly sales before announcing its U.S. plants will close for six days this month because of parts shortages.</p>
<p>American Honda sales rose 24 percent on a 25 percent jump in Honda brand volume. Kia said March sales rose 45 percent, helping it sell more than 100,000 units in a quarter for the first time.</p>
<p>Industry sales are now up 20 percent this year.</p>
<p>March&#8217;s seasonally adjusted annual sales rate of 13.1 million marked the sixth consecutive month the SAAR has topped 12 million vehicles. The figure is up from a SAAR of 11.78 million a year earlier but down from February&#8217;s 13.4 million.</p>
<p>Ford&#8217;s March results were driven by higher fleet sales, strong F-Series demand and record monthly sales of the Fusion and Escape. Fiesta sales reached 9,787, up 56 percent over February, the automaker said.</p>
<p>The Ford division posted a 28 percent jump in sales, offsetting a 2 percent decline in volume at Lincoln. Ford&#8217;s F-Series truck lineup &#8211; featuring more fuel efficient powertrains for 2011 &#8211; posted sales of 53,272, up 25 percent compared to a year ago.</p>
<p>&#8220;The No. 1 unmet need for full-size pickup truck owners has been fuel economy,&#8221; Doug Scott, marketing manager for Ford&#8217;s truck line, said in a statement.</p>
<p>Ford said its retail sales &#8211; a key measure of consumer demand &#8211; rose 14 percent. Fleet sales were up 29 percent, with commercial sales up 50 percent, government demand up 33 percent and daily rental volume up 13 percent.</p>
<p>GM, which outperformed the overall U.S. market in January and February, is still ahead of Ford in year-to-date sales by more than 97,000 units. It has been the U.S. sales leader on an annual basis since 1931.</p>
<p>New models such as the Chevrolet Cruze and healthy demand for fuel efficient cars and crossovers helped GM post a 10 percent gain in March sales.</p>
<p>The automaker said car sales rose 15 percent, while crossover demand jumped 30 percent and big pickup sales jumped 11 percent.</p>
<p>It was the 7th consecutive monthly sales gain for GM, but the advanced trailed increases posted in January and February as the automaker reduced discounts.</p>
<p>GM&#8217;s average incentive dropped 17 percent to $3,109 per vehicle last month from February levels, online shopping guide TrueCar estimated.</p>
<p>GM said retail sales advanced 17 percent compared with March 2010.</p>
<p>Combined retail sales of models launched since June 2009 – including the Chevrolet Equinox, Cruze and Volt; Buick Regal; GMC Terrain; and Cadillac SRX – advanced 54 percent last month and rose 74 percent during the first quarter, GM said.</p>
<p>Fleet sales represented 24 percent of GM&#8217;s sales volume during the first quarter, compared with 30 percent in the first quarter of 2010.</p>
<p>&#8220;Our plan was to get out of the gates quickly in the first quarter and we succeeded,&#8221; Don Johnson, head of GM&#8217;s U.S. sales operations, said in a statement.</p>
<p>Rising gasoline prices and manufacturing disruptions caused by the Japanese earthquake, tsunami and nuclear crisis could slow the industry&#8217;s ongoing sales recovery during the spring selling season, analysts say.</p>
<p>And while credit markets continue to thaw, making it easier for consumers to finance new vehicle purchases, new vehicle demand is still being hampered by high unemployment and a weak housing market.</p>
<p>The Labor Department reported today that employers added 216,000 jobs in March, slightly above forecasts and a fresh sign hiring is gaining momentum.</p>
<p>TrueCar.com estimates the industry&#8217;s average incentive per vehicle dropped 6 percent from February to $2,432 last month. In March 2010, industry discounts averaged $2,798 per vehicle.</p>
<p>Last year, light-vehicle sales climbed to 11.6 million units from a 27- year low in 2009. But sales volumes remain about 31 percent below the 16.8 million-unit annual average from 2000 to 2007, according to Autodata Corp.</p>
<p>The rise in oil and gasoline prices is drawing buyers away from light trucks and into smaller cars, analysts said.</p>
<p>In a recent report, J. P. Morgan analyst Himanshu Patel said that each $1 increase in the U.S. retail price of gas results in a 5 percentage-point shift toward lower-margin cars for automakers.</p>
<p>U.S. gas prices rose more than 3 cents to $3.60 a gallon over the last week, and have climbed by 80 cents from a year ago, the Energy Department said this week.</p>
<p>&#8220;With gasoline prices eclipsing $3.50 a gallon, consumers are placing a high priority on fuel efficiency in every size and kind of vehicle,&#8221; said Ken Czubay, head of U.S. marketing and sales at Ford.</p>
<p>Political turmoil in the Middle East has sent the cost of crude oil to above $100 a barrel.</p>
<p>&#8220;When there is unrest, consumers tend to take a wait and see approach to purchasing big ticket items,&#8221; Jesse Toprak, an analyst with TrueCar.com, said last week.</p>
<p>The aftermath of the Japanese earthquake and tsunami last month is also expected to dampen supplies and sales of select models in coming weeks.</p>
<p>&#8220;For the most part our product inventory levels are very good at 352,000 vehicles,&#8221; said Toyota&#8217;s Carter. &#8220;While there may be spot shortages here or there, we are prioritizing distribution efforts to minimize those shortages.&#8221;</p>
<p>Toyota said today is was scrapping all incentives on the Prius hybrid for April. Because of disruptions in Japan and rising demand, Toyota is down to an 18-day supply of the Prius, but the automaker said it does not expect to run out.</p>
<p>&#8220;The uncertainty surrounding future production and vehicle availability may limit dealers&#8217; willingness to provide additional discounts on top of OEM incentives,&#8221; analyst Richard M. Kwas of Wells Fargo said in a report this week.</p>
<p>As a result, Kwas expects the April SAAR to fall sequentially from March because of inventory shortages caused by the Japanese earthquake.</p>
<p>&#8220;Underlying retail demand continues to strengthen and automakers will attempt to make up for lost production later in the year,&#8221; he added.</p>
<p>GM, Toyota, Honda and Nissan are among automakers that have idled plants and cut output because of parts shortages in Japan. The unplanned reduction in car and light truck output and supply is expected to prompt Japanese automakers to reduce fleet sales and redirect inventory to retail sales.</p>
<p>&#8220;We know there will be challenges in the coming months as we continue to deal with supply chain issues resulting from the earthquake in Japan,&#8221; John Mendel, head of sales for American Honda, said today in a statement.</p>
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		<title>Lenders Making The Road To Auto Financing Easier to Travel</title>
		<link>http://pa-magazine.com/industry-news/lenders-making-the-road-to-auto-financing-easier-to-travel/</link>
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		<pubDate>Mon, 28 Mar 2011 13:03:04 +0000</pubDate>
		<dc:creator>egesualdo</dc:creator>
				<category><![CDATA[Auto Industry News]]></category>
		<category><![CDATA[auto lending]]></category>
		<category><![CDATA[Chrysler Group]]></category>
		<category><![CDATA[Ford Motor]]></category>
		<category><![CDATA[General Motors]]></category>

		<guid isPermaLink="false">http://pa-magazine.com/?p=7504</guid>
		<description><![CDATA[As car buyers head back into dealerships after a two-year drought, they&#8217;re being greeted by rock-bottom interest rates on auto loans, eye-popping lease deals and a renewed willingness to lend to people with spotty credit. Banks are on firmer financial footing, helped by government aid and renewed demand for auto loans that are packaged and ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/lenders-making-the-road-to-auto-financing-easier-to-travel/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>As car buyers head back into dealerships after a two-year drought, they&#8217;re being greeted by rock-bottom interest rates on auto loans, eye-popping lease deals and a renewed willingness to lend to people with spotty credit.</p>
<p>Banks are on firmer financial footing, helped by government aid and renewed demand for auto loans that are packaged and sold as securities, a market that raises money and allows banks to write more loans. Buyers, too, are gaining confidence. U.S. auto sales rose 20 percent in February to the highest monthly pace since &#8220;cash for clunkers&#8221; in August 2009, reported <em>The Detroit News.</em></p>
<p>This month, General Motors, Chrysler, Ford, Nissan and others have been offering zero percent interest rates on auto loans. Luxury makers such as Acura and Cadillac have lease deals with zero percent down. Banks have cut their interest rates on auto loans in half.</p>
<p>&#8220;If you feel comfortable purchasing today, the deals are out there to be had,&#8221; said Mark Hawks, 40, an information technology specialist from suburban Washington, D.C., who shaved thousands of dollars off the sticker price of the Ford Taurus SHO sport sedan he bought in December.</p>
<p>Hawks has a credit score of 780, which puts him in the highest tier of borrowers. He was pre-approved through his credit union for a five-year loan with a 3.99 percent annual interest rate. But his dealer beat that, offering a 3.79 percent rate with no payment for 90 days through Fifth Third Bank. The dealer also kicked in a $2,000 rebate and the trade-in value of Hawks&#8217; eight-year-old Subaru. Final price of the new car: $33,000, compared with a sticker price of $46,000.</p>
<p>Here are some reasons for the great deals:</p>
<p>Lower rates. Buyers are paying an average annual percentage rate of 3 percent for new cars financed in February, down from nearly 4 percent in the same month a year ago, says auto research site Edmunds.com. That&#8217;s one of the lowest rates since before the economic downturn.</p>
<p>Banks, credit unions and automotive financing companies are in fierce competition to loan you money. While credit unions and finance companies once offered the lowest rates, banks now have more competitive financing.</p>
<p>With short-term rates near zero percent, banks that offered loans at 7 percent or 8 percent can now profit off 3 percent or 4 percent, says Greg McBride, a financial analyst with the personal finance website Bankrate.com.</p>
<p>More loans for subprime borrowers. Unlike much of 2010, when the auto loan market was open mainly to buyers with the best credit, people with weak credit histories now are having an easier time finding loans because of the competitive market. The percentage of new-car auto loans going to subprime buyers — generally those with credit scores below 680 — rose 18 percent in the last three months of 2010 over the same period the year before, according to Experian Automotive.</p>
<p>Better leasing deals. Leasing is making a comeback. That&#8217;s a boon for people seeking lower monthly payments on a car or truck. Leases made up a quarter of new-car transactions in February, Edmunds says. That was the highest single month for leasing since November 2005.</p>
<p>Generally, leasing means you pay less per month than you would on a car loan. The reason: You&#8217;re only paying off the amount the car will depreciate before you turn it in. When you buy, you&#8217;re paying for the whole car, plus finance charges.</p>
<p>Typically, about 20 percent of new cars are leased. But the bottom fell out of that market at the beginning of the downturn because there were too many used cars and not enough demand for cars coming off lease. Leasing fell to 16 percent of the market in 2009.</p>
<p>But as the recession progressed, used cars became scarce as people looked for cheaper wheels. That caused used car prices to rise. Now, lenders are more willing to take on a lease, knowing the car will be worth something when the lease is up.</p>
<p>Interest rates are likely to stay low this year, as the economy continues to recover. That will help keep loan terms attractive. Competition also remains fierce among car companies. GM said this month that it expects to dial back on lease deals and other incentives as the year goes on.</p>
<p>But even though deals are good, lenders have learned their lessons from the bust. Hawks, with his stellar credit, couldn&#8217;t match the deal he got on his Subaru in 2002. Back then, he paid 2.9 percent annual interest rate on a five-year loan.</p>
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		<title>GM&#8217;s U.S. Sales in January Top Estimates; Toyota Bounces Back</title>
		<link>http://pa-magazine.com/industry-news/gms-u-s-sales-in-january-top-estimates-toyota-bounces-back/</link>
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		<pubDate>Tue, 01 Feb 2011 22:33:13 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Auto Industry News]]></category>
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		<description><![CDATA[General Motors Co.&#8217;s U.S. sales in January rose more than analysts&#8217; estimates, aided by bigger discounts, pickups and new models, and Toyota Motor Corp. rebounded from a year ago when a recall halted deliveries. GM sales in the month gained 22 percent to 178,896 vehicles, topping four analysts&#8217; average estimate for a 9.2 percent increase. ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/gms-u-s-sales-in-january-top-estimates-toyota-bounces-back/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>General Motors Co.&#8217;s U.S. sales in January rose more than analysts&#8217; estimates, aided by bigger discounts, pickups and new models, and Toyota Motor Corp. rebounded from a year ago when a recall halted deliveries.</p>
<p>GM sales in the month gained 22 percent to 178,896 vehicles, topping four analysts&#8217; average estimate for a 9.2 percent increase. Toyota&#8217;s sales rose 17 percent to 115,856 vehicles, beating the average estimate for a 16 percent gain, Bloomberg reported.</p>
<p>Industrywide deliveries may have reached the second-fastest pace in 17 months with a seasonally adjusted 12.4 million vehicle annual rate in January, the average estimate of six analysts. GM&#8217;s discounts and sales incentives last month rose 28 percent from a year earlier to an average of $3,762 per vehicle as the company sought new buyers, according to Edmunds.com.</p>
<p>&#8220;GM was very aggressive with some of its incentive spending,&#8221; Jessica Caldwell, an analyst with Santa Monica, California-based Edmunds, said in a telephone interview. &#8220;They had some loyalty programs in the market.&#8221;</p>
<p>Toyota&#8217;s sales climbed from January 2010, when the Toyota City, Japan-based company temporarily halted sales of eight U.S. models after recalling millions of vehicles for unintended acceleration.</p>
<p>Ford Motor Co.&#8217;s light-vehicle sales rose 9.2 percent to 126,981, the company said in a statement. That trailed the average of four analysts’ estimates for an 18 percent gain.</p>
<p>GM fell 10 cents to $36.39 at 3:53 p.m. in New York Stock Exchange composite trading. Through yesterday, the Detroit-based company’s shares had gained 11 percent from the $33 initial public offering price. Dearborn, Michigan-based Ford was unchanged at $15.95.</p>
<h3>Incentive Spending</h3>
<p>GM&#8217;s incentive spending increased &#8220;modestly,&#8221; and its sales gains were fueled by more advertising and strong new models, Don Johnson, GM’s vice president of U.S. sales operations, said today.</p>
<p>&#8220;We&#8217;re not going to return to the days of driving production with incentives,&#8221; Johnson said on a conference call. &#8220;We know that is not going to be a recipe for success for us.&#8221;</p>
<p>Chevrolet deliveries gained 19 percent to 125,389 vehicles, GM said today in a statement. Sales of the Equinox small SUV climbed 35 percent to 12,847. Deliveries of the new Chevrolet Cruze compact, which is replacing the Cobalt, rose 25 percent from December to 13,631 in January.</p>
<p>Retail customers accounted for 88 percent of Cruze sales in the month, compared with 40 percent for the Cobalt in January 2010, said Alan Batey, vice president of Chevrolet sales.</p>
<h3>&#8216;Tremendous&#8217; Momentum</h3>
<p>&#8220;For GM, the new products are pulling consumers into showrooms,&#8221; said Rebecca Lindland, an analyst with IHS Automotive, a researcher in Lexington, Massachusetts. &#8220;They have a tremendous amount of momentum.&#8221;</p>
<p>GMC Sierra pickup sales increase 46 percent to 10,627, and Chevrolet Silverado deliveries rose 24 percent to 28,172.</p>
<p>Buick sales climbed 32 percent to 13,269, led by the Enclave sport-utility vehicle. GMC deliveries gained 30 percent to 27,658.</p>
<p>Cadillac sales rose 49 percent to 12,580. Deliveries of CTS sedans, coupes and wagons increased 70 percent to 4,362.</p>
<p>Since filing for bankruptcy in 2009, GM has closed Hummer, Pontiac and Saturn and sold Saab to focus on Buick, Cadillac, Chevrolet and GMC. Sales of GM’s four remaining brands rose 23 percent from January 2010, the company said.</p>
<p>Sales of Ford’s Explorer SUV surged 73 percent to 7,351, the company said today in a statement. Overall deliveries for the namesake brand climbed 22 percent, tempered by a decline in sales of the Focus compact car.</p>
<h3>&#8216;Out of Their Caves&#8217;</h3>
<p>&#8220;Consumers are coming out of their caves and spending money again,&#8221; George Pipas, Ford&#8217;s sales analyst, said yesterday during a briefing with reporters in Dearborn.</p>
<p>Deliveries of the Lincoln luxury brand declined 21 percent in January to 5,558.</p>
<p>Chrysler, the automaker controlled by Fiat SpA, said January sales rose 23 percent to 70,118 vehicles. The average estimate of four analysts was for a 27 percent gain.</p>
<p>Car sales dropped 22 percent to 11,425, driven by declines for the Chrysler 300 and Dodge Avenger sedans, the Auburn Hills, Michigan-based company said today in a statement. Jeep Grand Cherokee deliveries more than doubled to 7,612.</p>
<p>U.S. consumer confidence rose more than forecast in January to the highest in eight months, the Conference Board reported last week, while the Thomson Reuters/University of Michigan final index of consumer sentiment fell less than analysts estimated. Gross domestic product grew at a 3.2 percent annual pace in the fourth quarter, the Commerce Department reported.</p>
<h3>Nissan Tops Estimates</h3>
<p>Nissan Motor Co., Japan&#8217;s second-largest automaker, increased sales of Nissan and Infiniti brand vehicles by 15 percent last month, Al Castignetti, Nissan&#8217;s vice president of U.S. sales, said in an interview. The average estimate of analysts surveyed by Bloomberg was for a gain of 14 percent.</p>
<p>Honda Motor Co., Japan’s third-largest carmaker, increased U.S. sales of Honda and Acura brand autos 13 percent last month to 76,269, said Chris Martin, a company spokesman.</p>
<p>The average estimate of analysts surveyed by Bloomberg was for a rise of 24 percent for Tokyo-based Honda.</p>
<p>Kia Motors Corp., the second-biggest South Korean automaker, said in a statement today its U.S. sales rose 26 percent in January. </p>
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		<title>GM Seeks Approval of $773M Environmental Accord</title>
		<link>http://pa-magazine.com/industry-news/gm-seeks-approval-of-773m-environmental-accord/</link>
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		<pubDate>Wed, 20 Oct 2010 23:28:51 +0000</pubDate>
		<dc:creator>Staff Writer</dc:creator>
				<category><![CDATA[Auto Industry News]]></category>
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		<category><![CDATA[environment]]></category>
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		<description><![CDATA[General Motors Co.’s bankruptcy estate seeks approval of a settlement that would set aside $773 million of U.S. money to resolve environmental claims by the federal government and 14 states, Bloomberg reported. A mixture of cash and assets, put into trusts, would clean up and administer 89 properties, 59 of which are known to be ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/gm-seeks-approval-of-773m-environmental-accord/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>General Motors Co.’s bankruptcy estate seeks approval of a settlement that would set aside $773 million of U.S. money to resolve environmental claims by the federal government and 14 states, Bloomberg reported. </p>
<p>A mixture of cash and assets, put into trusts, would clean up and administer 89 properties, 59 of which are known to be contaminated, Gary Grindler, acting deputy attorney general, said in a statement. A 30-day period to gather public comment will precede a request for bankruptcy court approval. </p>
<p>More than half the money would go for sites in New York and Michigan, Grindler said. </p>
<p>The St. Regis Mohawk Tribe, the U.S. Environmental Protection Agency and the states are part of the settlement. The tribe has yet to accept the proposal. A public hearing is scheduled for tonight. </p>
<p>The accord paves the way for the carmakers’ unwanted business to wind down in bankruptcy on the eve of a hearing tomorrow at which the Old GM estate will seek court approval of terms of its liquidation. </p>
<p>When GM filed for bankruptcy in June 2009, it sold attractive assets to a newly formed company and left the 89 properties at issue in today’s settlement under bankruptcy protection. </p>
<p>The U.S. Treasury and Canada’s export credit agency had lent the bankrupt estate $1.175 billion to wind down the bankrupt properties. The EPA later filed claims in the case for environmental cleanup costs, as did the states. </p>
<p>Money for the settlement will come from past government loans to the automaker, said Tim Yost, a spokesman for the estate. </p>
<p>U.S. Bankruptcy Judge Robert Gerber in New York in May gave the company a four-month extension of time in Chapter 11 to resolve environmental and asbestos liabilities. </p>
<p>Two units of the carmaker formed to hold environmental liabilities owed about $1.2 billion in cleanup costs, according to court papers. The amount set aside by Old GM is the largest of recent environmental settlements. </p>
<p>Chrysler Corp.’s old estate in bankruptcy set aside $15 million for cleanup costs at polluted properties. Lyondell Chemical Co. resolved an estimated $5.5 billion in environmental liabilities with about $170 million, according to court papers. </p>
<p>Old GM’s settlement includes $641 million in cash and non- cash assets worth $120 million. It has paid $11.5 million to clean properties during its bankruptcy.</p>
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		<title>G.M. and Utilities Want to Install 5,300 Electric Chargers in Michigan</title>
		<link>http://pa-magazine.com/industry-news/g-m-and-utilities-want-to-install-5300-electric-chargers-in-michigan/</link>
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		<pubDate>Wed, 13 Oct 2010 23:55:05 +0000</pubDate>
		<dc:creator>PAadmin</dc:creator>
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		<description><![CDATA[DETROIT &#8211; While Michigan’s history is inseparably linked to the gasoline engine, General Motors said on Tuesday that more than 5,300 home and workplace electric-vehicle charging stations would be installed within the state to meet the demands of an emerging fleet of plug-in hybrid and electric vehicles. Among those pitching in to power up the state ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/g-m-and-utilities-want-to-install-5300-electric-chargers-in-michigan/">Read More &#187;</a>]]></description>
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<p>DETROIT &#8211; While Michigan’s history is inseparably linked to the gasoline engine, General Motors said on Tuesday that more than 5,300 home and workplace electric-vehicle charging stations would be installed within the state to meet the demands of an emerging fleet of plug-in hybrid and electric vehicles.</p>
<p>Among those pitching in to power up the state are two major Michigan electrical utilities: DTE Energy and Consumers Energy, reported <em>The New York Times</em>. Each company has agreed to cover up to $2,500 of the cost of 2,500 240-volt home charging stations. In Lansing, the city’s Board of Water and Light has pledged another 25 stations.</p>
<p>Of course, G.M., which introduced the Chevrolet Volt plug-in hybrid earlier this week, will be part of the electrification effort. The automaker plans to have 350 charging stations available for its Michigan employees. G.M. said that more than 100 had already been installed. Some of the stations at G.M. facilities would be powered by solar energy. The Detroit-Hamtramck assembly plant, where the Volt is built, already has 10 stations in place that draw current from photovoltaic systems.</p>
<p>But the vast majority of new charging stations will be installed on residential property. Tom Stephens, G.M.’s vice chairman of global product operations, said, “Since our homes may soon be our fueling stations of the future, we believe the most important way to make communities plug-in ready is by enabling residential charging.”</p>
<p>Nearly all of the charging stations installed by DTE Energy will be in private residences. A DTE Energy spokesman, Scott Simons, said the utility had received approval for a special electric-vehicle rate from the Michigan Public Service Commission. That rate is about 40 percent less than the utility’s standard rate, and it’s applicable during off-peak hours, which run from 11 p.m. through 9 a.m., Monday through Friday, and around the clock on weekends. As an alternative, a flat rate of $40 a month will be offered to the first 250 DTE customers who express an interest in that plan.</p>
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		<title>GM CEO Akerson and Treasury&#8217;s Geithner Meet in New York</title>
		<link>http://pa-magazine.com/industry-news/gm-ceo-akerson-and-treasurys-geithner-meet-in-new-york/</link>
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		<pubDate>Tue, 12 Oct 2010 18:33:38 +0000</pubDate>
		<dc:creator>PAadmin</dc:creator>
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		<description><![CDATA[WASHINGTON &#8212; General Motors CEO Dan Akerson today held an introductory private meeting with U.S. Treasury Secretary Timothy Geithner, said spokesmen for the government and the automaker. GM is expected to launch an initial public offering of its stock as early as next month at an undisclosed price, reported Automotive News. The U.S. Treasury owns about ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/gm-ceo-akerson-and-treasurys-geithner-meet-in-new-york/">Read More &#187;</a>]]></description>
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<p>WASHINGTON &#8212; General Motors CEO Dan Akerson today held an introductory private meeting with U.S. Treasury Secretary Timothy Geithner, said spokesmen for the government and the automaker.</p>
<p>GM is expected to launch an initial public offering of its stock as early as next month at an undisclosed price, reported <em>Automotive News</em>. The U.S. Treasury owns about 61 percent of the automaker after spending about $50 billion to rescue it.</p>
<p>GM spokesman Greg Martin and a Treasury spokesman today described the meeting in New York City as a “meet and greet.”</p>
<p>“This is the first time their schedules matched,” Martin said in an e-mail.</p>
<p>A Treasury spokesman said the meeting “will be a general discussion on the state of the industry and the business.”</p>
<p>Neither spokesman would discuss details about the meeting after it concluded.</p>
<p>In addition to its plans to offer shares to the public, GM also is giving about 600,000 employees and retirees in the United States and Canada the chance to buy the shares.</p>
<p>Akerson, a longtime telecommunications industry executive who later headed buyouts at The Carlyle Group equity firm, was named GM&#8217;s CEO in August, when Ed Whitacre stepped down for a longer-term CEO to guide the company as it exits government ownership. Akerson had been a member of GM&#8217;s board since it emerged from bankruptcy in July 2009.</p>
<p>While Akerson has not commented directly on the IPO due to U.S. securities regulations, he said last month that the process of paying back taxpayers could take &#8220;several years.&#8221;</p>
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		<title>GM Will Face Questions About Opel in IPO Promotion</title>
		<link>http://pa-magazine.com/industry-news/gm-will-face-questions-about-opel-in-ipo-promotion/</link>
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		<pubDate>Wed, 08 Sep 2010 00:00:46 +0000</pubDate>
		<dc:creator>Staff Writer</dc:creator>
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		<description><![CDATA[As General Motors Co. gears up to pitch its initial public offering to investors this fall, one of the tougher tasks it faces is making the case that its Opel operations in Europe can be fixed, The Wall Street Journal reported. While the U.S. auto maker has reported two consecutive quarters of profit since emerging ... <a style="font-size:12px;font-weight:bold;color:#222782;font-family:verdana;text-decoration:none;" href="http://pa-magazine.com/industry-news/gm-will-face-questions-about-opel-in-ipo-promotion/">Read More &#187;</a>]]></description>
			<content:encoded><![CDATA[<p>As General Motors Co. gears up to pitch its initial public offering to investors this fall, one of the tougher tasks it faces is making the case that its Opel operations in Europe can be fixed, <em>The Wall Street Journal</em> reported.</p>
<p>While the U.S. auto maker has reported two consecutive quarters of profit since emerging from bankruptcy last year, its Opel/Vauxhall unit—the backbone of GM&#8217;s European operations—continues to lose money and remains caught between high production costs and a brand image badly bruised by nearly two years of financial uncertainty.</p>
<p>Opel&#8217;s market share keeps sliding in an already declining European car market, adding to pressure on GM and Opel&#8217;s management to show would-be investors that it has an effective turnaround strategy for Europe in place.</p>
<p>Opel&#8217;s chief executive, Nick Reilly, said the carmaker is sticking to its plan to break even by 2011 and to return to profitability by 2012, and may even do so ahead of schedule should European car sales rebound more quickly than expected.</p>
<p>&#8220;Of course I am ambitious and want to do better than what is planned,&#8221; he said, adding that &#8220;GM&#8217;s new management is supporting us.&#8221;</p>
<p>In the second quarter, GM Europe, which also includes the European business of Chevrolet and other GM brands, narrowed its loss to $200 million after posting a $500 million deficit in the year&#8217;s first quarter. Still, that equaled a loss of $483 on each vehicle the European arm sold. GM itself posted a second-quarter profit of $1.3 billion, its best quarterly result in six years. </p>
<p>The biggest trouble spot is Germany, Opel&#8217;s home base and largest market. Car registration figures released last week show new registrations for Opels in Germany have fallen 39% through August of this year.</p>
<p>While total German car sales are down by more than a quarter this year—the hangover effect of the country&#8217;s hefty 2009 scrappage subsidies—Opel&#8217;s drop is the steepest of any domestic manufacturer. It comes despite the recent launch of a new version of one of Opel&#8217;s best sellers, the five-door Astra hatchback.</p>
<p>As a result, its German market share has slipped to 7.7 percent from 9 percent in 2009. Across Western Europe, Opel&#8217;s share fell to 7 percent through the year&#8217;s first half, down from 7.4 percent last year, according to the ACEA European Automobile Manufacturers&#8217; Association.</p>
<p>&#8220;They&#8217;re going to have a hard time in [stock promotion] road shows in discussing why, when they were divesting as much as they could, they didn&#8217;t sell Opel,&#8221; said Scott Sweet, senior managing partner of IPO Boutique, a Tampa, Fla., IPO advisory firm.</p>
<p>GM last November decided at the 11th hour to pull out of a deal, crafted under pressure from the German government, to sell Opel to a Canadian-Russian consortium. Daniel Akerson, GM&#8217;s new chief executive, had a central role in the move to abandon the sale as he and other board members concluded Opel played too critical a role as GM&#8217;s beachhead in Europe and a key center of its engineering know-how, particularly in small and compact and cars, to let it go.</p>
<p>Most analysts agree with that assessment but say Opel faces a daunting battle in returning to sustainable profitability.</p>
<p>Even in the midst of a broad restructuring that involves shedding 8,000 jobs, all but one of Opel&#8217;s 13 plants will stay open and most of its production will remain concentrated in relatively high-cost Western Europe. </p>
<p>Despite plans to move into new markets such as China and Israel, the auto maker said it would take considerable time to build a substantial presence outside Europe. </p>
<p>And Opel lacks the image or products to command higher prices charged by rivals such as BMW AG to help boost its profit margins, said Jürgen Pieper, an auto analyst at Bankhaus Metzler in Frankfurt.</p>
<p>&#8220;There are only so many ways for a company like Opel [to improve profitability] and none are readily available,&#8221; the analyst said. &#8220;In a European market on the upswing they can probably make a small profit, but every four or five years they will be facing the same tough questions again.&#8221; </p>
<p>Analysts and dealers say Opel&#8217;s most pressing problem is restoring its image, particularly in Germany, where it has been battered by months of questions over its survival, ownership and financing for its turnaround. </p>
<p>In June, GM announced it would fund Opel&#8217;s €3.3 billion ($4.3 billion) restructuring on its own, but not before months of delays and, ultimately, rejection by the German government of the car maker&#8217;s appeal for more than €1 billion in state aid.</p>
<p>&#8220;After so much uncertainty for so long, naturally a lot of customers stayed away,&#8221; said Thomas Bieling, who co-heads the German association of Opel dealers.</p>
<p>To lure back customers and motivate dealers, Opel is investing in new models, including a smaller city car expected to be launched in 2013. And it&#8217;s banking on its Ampera extended-range electric car, a European cousin to the Chevrolet Volt, which is due out in late 2011.</p>
<p>Opel also recently unveiled a &#8220;lifetime&#8221; car warranty, which effectively is limited to 160,000 kilometers (99,424 miles), though with no time restrictions. That attracted the ire of a nongovernmental competition watchdog, which last week sued Opel for what it called misleading advertising. Bieling, though, said the guarantee has been popular with dealers and buyers. </p>
<p>Reilly said the company has no plans to change the guarantee campaign. &#8220;But of course the competition doesn&#8217;t like the campaign at all,&#8221; he said.</p>
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