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GM Planning $11 Bil Investment in China

Ford doubling Chinese engine production.

by on Jun.18, 2013

GM CEO Dan Akerson during a visit to China.

General Motors and its Chinese partners expect to invest $11 billion in China between now at the end of 2016 as part of an ambitious expansion plan in what is now GM’s second-largest global market.

GM Chairman and Chief Executive Officer Dan Akerson told analysts during a meeting at the maker’s Milford Proving Grounds that the company is financially strong enough to maintain a steady investment cadence in the years to come. The planned investment includes spending more than $11 billion in China over the next three-and-a-half years.

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GM isn’t the only maker upping its investment in China, now the world’s largest national automotive market.  During a visit to China, Ford Motor Co. CEO Alan Mulally announced the maker will double the size of its Changan Ford Engine Plant near Chongqing. The $500 million investment will bring capacity to 400,000 powerplants annually.

“This kind of expansion is nearly unprecedented, and it really reflects the level of commitment we have to this region,” said Mulally.

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Ford Turns to Robot Test Drivers

Technology designed to handle tests too strenuous for humans.

by on Jun.17, 2013

No, it's not C3P0 behind the wheel.

We’ve been hearing a lot about autonomous vehicles in recent months, some experts forecasting the first driverless cars could roll into showrooms by the end of the decade – while others say our litigious legal system will never let that happen.

But Ford Motor Co. has already put some robots to work at its big test track in the northern Detroit suburbs, using the technology to handle the repetitive task of test driving vehicles like the new Transit van.

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Dave Payne, Ford manager vehicle development operations at the automaker’s proving ground, said the robotic system is now used for more than 70% of the durability testing done at the company’s Michigan Proving Ground outside Romeo, Michigan.

Test drivers are still used for some of the durability tests, Payne stressed, noting that, “The human brain is a wonderful machine.”

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Cadillac Readies Overdue Escalade Replacement

GM plans “most sophisticated” SUV it has ever built.

by on Jun.14, 2013

Cadillac is finally getting ready to launch a replacement for the aged Escalade SUV.

The next generation Cadillac Escalade, which is due out next spring, will be the most sophisticated sport utility vehicle every built by General Motors, GM executives told analysts this week during a meeting at the company’s Milford Proving Grounds.

Robert Ferguson, GM vice president of Global Cadillac, offered analysts a glimpse at the 2015 Escalade and emphasized it is expected to play a major role in the growth of Cadillac, which is enjoying its best year since 1976.

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“The Escalade is still a very bold vehicle,” Ferguson said. “But the next generation is going to become more sophisticated.”

Ferguson said the new Escalade will meet or exceed the expectations of high-line buyers with a luxury interior that will match or exceed those found in luxury passenger cars.

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First Drive: 2014 Mercedes-Benz E350 Sedan

E-Class loyalists rejoice.

by on Jun.13, 2013

The ninth-generation Mercedes-Benz E-Clas debuts with the introduction of the E350 sedan and wagon.

When it comes to the Mercedes-Benz E-Class sedan, familiarity breeds anything but contempt.  By far the most popular midsize luxury sedan in the market – indeed, in just about any market in the world – the midsize Mercedes has good reason to claim an intensely loyal following.

Traditionally, while it may not have been the sportiest sedan in its segment, or the most stylish, it offers a mix of performance, features and grounded, Teutonic design that turned heads and led buyers to open their wallets, generation after generation.

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And now, the German maker is hoping to maintain its standing with an all-new ninth-generation E-Class that takes a step beyond the simple update many had expected.  To get a better feel for just how much things have changed, we spent a day driving the 2014 Mercedes-Benz E350 sedan which, along with the E-wagon, is the first of a wide range of variants we’ll be seeing over the coming months.

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GM Goes Wireless – With a Little Help from Outside

Former Dell exec leads effort to add WiFi to new GM vehicles.

by on Jun.11, 2013

GM expects to significantly expand the services available to motorists, such as the new OnStar Family Link, when it builds 4G service into all its new vehicles.

It’s a connected world and for those who can’t stomach the idea of being out of touch even behind the wheel, General Motors has laid out an ambitious plan to integrate 4G WiFi service into every vehicle it builds by 2015.

To spearhead the plan, GM is reaching beyond its traditional comfort zone, turning to a tech veteran, rather than an automotive insider.  Mary Chan will not only oversee the 4G project but take over GM’s more than decade-old OnStar telematics service, as well.

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Chan joins GM in the newly created role of President, Global Connected Consumer. In this capacity she reports to Vice Chairman Stephen Girsky and has responsibility over the recently formed global Infotainment Business Unit as well as OnStar and the 4G initiative.

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2014 Chevy Impala Fires on All Four Cylinders

A big car with a small appetite for fuel.

by on Jun.10, 2013

Despite its size, the 2014 Chevy Impala's new 2.5-liter I-4 can deliver up to 31 mpg Highway.

Long known – and largely ignored – for its bland, forgettable styling and driving manners only a rental car customer could appreciate, General Motors delivered a real surprise with the redesigned 2014 Chevrolet impala.

As we discovered during our first drive of the sedan earlier this year, the new Impala is not just stylish and well-equipped but also a lot of fun to drive, not something you might expect from a 3,800-pound, full-size 4-door.  Of course, it helped that the launch version of the Impala featured a peppy 3.6-liter V-6 turning out 305 horsepower and 264 pound-feet through a 6-speed automatic transmission.

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In decades past, that might have been precisely what the market wanted, but not in an era of $4-a-gallon gas.  Even big sedans like Impala now need to offer something smaller and more fuel-efficient under the hood. And the good news is the 2014 Chevy Impala has just the option, a new 2.5-liter inline-four that’s also matched up to a six-speed automatic.

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First Look: All-New 2014 Toyota Corolla

Sedan gets bolder design, more room, better mileage.

by on Jun.07, 2013

An all-new 2014 Toyota Corolla makes its entrance during a flashy media event in LA.

With the help of spotlights and acrobats, an all-new version of the Toyota Corolla made its splashy entrance in an old aircraft hangar in Santa Monica, Calif. as hundreds of journalists and guests waited to see what the Japanese automaker might have in store for the perennially best-selling compact sedan.

Often faulted for its conservative styling and generally boring handling and performance, consumers in the U.S. and another 153 countries have nonetheless long embraced the Corolla – which has sold more than 40 million copies since it was first introduced in Japan in 1966. But with competition in the compact market rapidly heating up, Toyota has delivered what it bills as not just a more stylish sedan, but one with lots more room and a renewed focus on fuel economy.

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“We’ve listened to our customers,” said Toyota Division General Manager Bill Fay, who said the objective was to elevate the impact the new Corolla has on individual motorists. “It looks sportier and feels better.”

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GM CEO Tells Shareholders Bailout A Success

Akerson: its clear that loans protected U.S. manufacturing.

by on Jun.06, 2013

General Motors Chairman and CEO Dan Akerson addresses the 2013 General Motors annual meeting.

The facts show the bailout of American automobile industry has been a success, at least according to Dan Akerson, General Motors chairman and chief executive officer, who made the assertion to shareholders at the company’s annual stockholders meeting in Detroit.

“Four years on, it’s pretty hard to argue it wasn’t successful,” he said. “The American public has been well served. All three American companies are profitable and the American manufacturing base is still 50% larger than China’s.”

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Akerson acknowledged the decision to bailout Detroit carmakers was very controversial at the time. However, the decision by “two administrations with very different political perspectives” has proven its worth by helping protect the U.S. manufacturing base during the recession. The bailout also meant the U.S. government didn’t have to cover $26 billion in pension costs connected to the automakers.

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Mississippi Caught Up In Nissan-UAW Battle

UAW claims Nissan not living up to promises made to state for aid.

by on Jun.04, 2013

Nissan is not living up to its promises with the Canton, Miss. plant claims the UAW.

The state of Mississippi has found itself caught up in the increasingly contentious dispute between Nissan and the United Autoworkers Union.

The state improperly offered millions in aid to entice Nissan to build its big factory in Canton, Miss., while the maker is allegedly failing to meet the promises it made in return for a reported $1.33 billion in aid, according to a report by a pro-union, Washington-based think tank.

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Nissan and its supporters, however, dispute that claim as just another frantic effort by the UAW to prop up a faltering drive to organize the Canton plant’s workers. Despite an organizing drive that has the backing of Southern civil rights groups, the union has not called for an election, suggesting it is having a tougher go than it expected.

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U.S. Auto Sales Continue Rolling In May

Large trucks, utilities leading the sales surge.

by on Jun.03, 2013

Ford's May sales were up 14% in May. Utilities like the Escape were up 15%.

Strong sales of pickup trucks and luxury cars, sales of new vehicles rose again in May as carmakers continued to help keep the U.S. economy growing despite the continuing concerns about deficits and job creation.

The three domestic carmakers, General Motors, Ford Motor Co. and Chrysler Group, all posted sales increases for May, as did their principal Japanese rivals – Nissan, Toyota and Honda – as well as luxury carmakers, such as BMW, Mercedes-Benz and Audi.

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Ford led the way as its sales increased 14% in May, with cars up 9%, utilities up 15% and trucks up 18%. Retail sales increased 17%, marking the best May retail sales results since 2005.

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