It’s now halftime for the 2008 game of automotive sales. In figures released today, Toyota has sold about 4.8 million car worldwide this year, and GM is trailing by 300,000 cars. GM says that sales in the U.S. have brought down its total numbers, but it has gained sales in Latin America, Asia and Europe. General Motors trailed Toyota’s sales for most of 2007, but it finished strong. In the end, GM only beat Toyota by a few thousand vehicles last year to retain the title as the world’s largest automaker. With the U.S. market not showing any signs of immediate recovery, is this the year we crown a new king?
Ever since General Motor’s stock price dipped below $10 per share at the beginning of this month, it has been setting records for all-time low in 50 years. Today was no exception, where it reached at one time $8.81 per share. The stock rebounded during the day, but that still doesn’t ease the employee’s and investor’s fears about GM’s future, including possible bankruptcy.
In today’s news conference, Chairman and CEO Rick Wagoner insists that General Motors had foreseen some of these economic problems, and the company has enough liquidity to keep going in 2008. As far as the immediate future, GM is looking to get $15 billion in cash on hand by 2009. Of this, around $6 billion will come from the sale of assets and external financing. The rest is expected to be raised internally by cutting employees, pay, and dividends.
General Motors’ Vice Chairman Bob Lutz was asked why over the last few years, the truck-friendly GM did not focus more on building fuel-efficient cars, his response was simple: “Nobody wanted them.” GM’s news conference held this morning with Lutz, Chairman and CEO Rick Wagoner, and COO and President Fritz Henderson, showed that General Motors knows its market is shifting.
Over the next 18 months, full-size trucks plans will be reduced and fuel efficiency will take center stage. “Our goal is to become the fuel economy leader in every segment we compete in,” Lutz said. “We’re not there yet, but that’s our goal.”
GM has traditionally been one of the worst offenders of badge engineering, producing cars that are virtually the same except for the logo. But at the conference, Lutz suggested that future plans include no longer “providing every division with a version of what every other division has.” This not only indicates future distinct brand identities, but may also suggest the elimination of a few General Motors brands before 2010.
GM announced the company will delay the redesign of SUVs and full-size trucks and they will focus on building lighter, fuel-efficient vehicles. GM’s spokesman Tom Wilkinson said late Wednesday that GM is "looking at the whole product portfolio."
The entire U.S. auto industry is suffering as consumers, paying $4 per gallon for gasoline, shy away from heavier vehicles that burn more fuel than lighter, more-compact models.
Mr. Wilkinson said the company is considering how it can most effectively supply the U.S. market with fuel-efficient cars from its vast cupboard of global vehicle designs.
The auto maker will extend the life cycle of its current lineup of pickups and SUVs. Those vehicles — known as the GMT900 lineup — include the Cadillac Escalade SUV and the Chevrolet Silverado pickup. The new generation of trucks and SUVs weren’t slated to hit the market until at least 2012, but development of these products drains precious resources at a time when GM is battling to satisfy customer tastes.
Gas prices are getting bigger, dollar is getting wicker. But this you already knew. And that the auto makers have big problems because of this two issues is not a secret anymore. With such a background big cars like SUVs or pick-ups seems to have no future.
And maybe is true! GM announced they will focus on building small cars and close four truck and SUV plants.
"Our greatest concern is the unprecedented rise in oil prices," said GM Chairman and CEO Rick Wagoner, speaking before the automaker’s annual meeting in Delaware. "We believe it is, by and large, permanent. We view the near term environment ... with considerable caution.
GM will phase out production at four SUV and truck assembly plants: Oshawa, Ontario, in 2009; Moraine, Ohio, in 2010 or sooner; Janesville, Wis., by the end of 2009 and Toluca, Mexico, by the end of this year.
And while customers ask more and more for sedans such as the redesigned Malibu and crossovers such as the Buick Enclave, there;s no point for huge cars like HUMMER. Wagoner announced that GM is considering the possible sale of its Hummer brand.
For the future Wagoner announced the all-new next generation Chevrolet compact car program. It will be better-equipped, fuel efficient and produced at GM’s Lordstown plant in starting in 2010. Also in 2010 GM will unveil the replacement for the subcompact Chevy Aveo and a new engine module to be produced in Flint.
GM announced the company will unveil a new Chevrolet compact car at an auto show this fall with production to begin early next year.
The future will be built on Delta compact car architecture at GM’s plant in Lordstown, Ohio. Under the hood there will be a new 1.4-liter global engine that develops between 120 and 140 hp. Sources say mileage could easily exceed 40 mpg.
The new engine will be shared among five nameplates: Chevrolet, Pontiac, Saturn, Opel and Daewoo, sources say. That means the Lordstown plant could build cars for export. The engine continues the trend that GM started with such cars as the Pontiac Solstice GXP and Saturn Sky Red Line.
GM also announced it will keep building the Chevrolet Cobalt through June 2010 as a 2009 model. Also, the Chevrolet minicar, the Beat, will come to the United States.
GM Powertrain Europe’s comprehensive Tech Show provides answers about how cars will be propelled in the future. As part of the global GM Powertrain organization, GM Powertrain Europe has global responsibility for small diesel engines, diesel control systems, small gasoline engines and manual transmissions. Its footprint encompasses 15 facilities in 7 European countries, employing 9,000 people and producing on average more than 17,000 engines and transmissions per day.
“The top strategic priority of all development activities is to increase fuel efficiency, reduce the CO2 emissions and emphasize energy diversity“, said Mike Arcamone, Vice President GM Powertrain Europe.
The GM Powertrain Tech Show also illustrates the worldwide network within General Motors. GM Powertrain is the global leader in producing engines and transmissions, with 86 plants and development facilities in 17 countries on all continents. More than 48,000 employees develop and build 33,000 transmissions and 37,000 engines on average every day. Customers include all GM brands as well as a list of other manufacturers.
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General Motors Corp.’s revolutionary new 4.5L V-8 Duramax turbo-diesel, which makes its debut in Chevrolet Silverado and GMC Sierra light duty trucks in the 2010 model year, is compact, powerful and fuel-efficient. The engine also is lighter, an important consideration in the competitive light truck market, because it was designed with more than 70 fewer parts.
The new dual-overhead cam, four-valve V-8 diesel engine boasts a number of innovative design approaches that have enabled its compact size and mass, including integral aluminum cylinder head exhaust manifolds, integral cam cover intake manifolds and a narrow V-angle block. The new V-8’s compact size enables it to fit within the same space of a small-block V-8 gasoline engine and offers GM the flexibility to introduce it in a wide variety of vehicles to meet market demand.
The new 4.5L V-8 diesel is expected to deliver more than 310 horsepower (231 kW) and 520 lb-ft of torque (705 Nm), while delivering a 25-percent engine fuel efficiency improvement versus comparable gasoline engines.
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General Motors Europe will invest a total of €9 billion into Opel through 2012, thus strengthening its core brand. €6.5 billion alone will be spent on the development of new vehicles and propulsion systems. In addition, the company is investing considerably into its German plants, Rüsselsheim, Bochum, Kaiserslautern and Eisenach.
GM Europe will invest €900 million into its new Rüsselsheim plant, which was put into operation in 2002. As of autumn 2008, Rüsselsheim will build a new generation of upper midsize vehicles, starting with the Opel Insignia. Bochum is granted investments worth €650 million to secure the facility’s long-term competitiveness and getting it ready for production of the next-generation Astra.
Hans H. Demant, Managing Director of Adam Opel GmbH, announced a comprehensive product offensive with 17 new passenger cars and 3 light commercial vehicles through 2012. In addition to the Insignia this autumn and the new Astra, it has also been decided that the next-generation Meriva with its rear-hinged doors (FlexDoor system) will go into production.
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Fifty-three years ago, the LaSalle II Roadster and the Chevrolet Biscayne were among the concepts that showcased General Motors’ vision of the future in its traveling Motorama. After the debut of this automotive eye candy, these cars were not only discarded but destroyed.
Throughout the 1950s, the General Motors Motorama took concept cars on tour to cities throughout the United States, inviting the public to enter the future by stepping through the doors of a GM automobile. After each cross-country show was concluded, these futuristic cars were relegated to the trash heap. In fact, since most of these vehicles had not been road tested, GM often ordered their total destruction to prevent legal problems.
General Motors will also be bringing nearly a dozen dream cars that the company itself has saved, and these cars will join the Bortz Collection and Motorama treasures owned by other collectors during the Concours’ celebration of the General Motors Centennial.
Lines from the 1955 LaSalle II Roadster can be found in such icons as the ’56 and ‘57 Corvette, while lines from the 1955 Chevrolet Biscayne are visible in the 1960 Corvair.
The Motorama cars that will be appearing at Pebble Beach will be joined by a rare assortment of GM Woodies, Cadillac V-16s and GM-powered sports cars. Other featured marques for 2008 include Lancia and Lamborghini.
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