Posts Tagged ‘gm news’

GM Abandons the Big Apple

Corporate treasurer, long based in NY, returns to Motown.

by on May.22, 2013

The GM Building in New York.

General Motors will close its New York Treasurers office and move the operation to Detroit by the middle of next year in what amounts to a wholesale shakeup of GM’s corporate culture, which has long been dominated by finance operating from offices high above Manhattan’s traffic clogged streets – and arguably out of touch with the maker’s Detroit headquarters or the rest of the country.

For decades, the New York office, which keeps track of GM’s cash and finances, has served as GM’s nerve center.  In fact, for many decades, the giant automaker’s powerful chairman, starting with Alfred P. Sloan, was based in the Big Apple, rather than Detroit.  Since the 1950s, New York is where high potential employees on the fast track went to win promotions to big jobs inside or even outside GM.

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Until 2009, GM Chairmen including the late Roger Smith, Jack Smith, Rick Wagoner and Fritz Henderson — Henderson the last man standing when GM filed for bankruptcy — had all worked in the New York office.

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GM Teams up with Stanford Auto Research Center

Goal is to “cultivate creative technology solutions.”

by on May.21, 2013

GM product czar Mary Barra is herself a Stanford grad.

General Motors is teaming up with Stanford University’s Center for Automotive Research in Palo Alto, California – the Detroit maker’s latest step in building up its high-tech research and development capabilities in Silicon Valley.

The announcement comes just days after Mercedes-Benz served as the lead automotive partner at the annual Google I/O developers conference and underscores the increasing emphasis the auto industry is placing on digital technology.

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GM opened a research center in Palo Alto in 2006. A half dozen other automakers, including Mercedes’ parent Daimler AG, BMW, Volkswagen, Ford Motor Co., Renault/Nissan and Toyota, have established research centers in Silicon Valley, while Tesla Motors is based in Palo Alto and runs an assembly plant in Freemont. Google, which is based in nearby Mountain View, has meanwhile become a force in the auto industry and could play an even bigger role in the future thanks to its push to develop autonomous vehicles.

Mary Barra, GM senior vice president of Global Product Development, says the maker decided to team up with Stanford “to mine the best and brightest ideas and recruit top students studying toward careers in science, technology, engineering and math.”

One of the biggest problems the auto industry – and Detroit makers in particular – has is attracting top high-tech engineers who are often lured to more sexy jobs in the digital industry.

(Mercedes Goes Digital with Help from Google. Click Here for the story.)

“Joining the Center for Automotive Research at Stanford is a natural fit for GM,” Barra said. “In order to create the world’s best vehicles, we make every effort to remain on the cutting edge of automotive development. Our membership in CARS will allow us both to expand and share our knowledge with students, faculty and industry partners as we work together to move the industry forward.”

The Center for Automotive Research at Stanford bills itself as a community of faculty and students from a range of disciplines aimed at discovering, building, and deploying critical ideas and innovations for the next generation of cars and drivers. It provides shared resources for research, teaching, student project teams and new educational initiatives across many research centers, including the law and business schools.

“GM is dedicated to helping develop the next generation of science, technology, engineering and mathematics professionals and advancing the industry,” Barra said. “The Center for Automotive Research at Stanford offers us not only the chance to contribute to the education of future leaders, but also cultivate new and creative vehicle technology solutions.”

Barra is one of several senior GM executives – a list also including Susan Docherty, head of Chevrolet in Europe — to have earned a degree from Stanford, which also is one of GM’s key engineering and business recruitment institutions.

How High is Up for GM Stock?

Maker will rejoin S&P 500 “before too long,” says CEO Akerson.

by on May.20, 2013

GM CEO Dan Akerson delivers the commencement address to Notre Dam business grads over the weekend.

Perhaps it’s just a rising tide lifting all boats, but General Motors stock has hit its highest close in more than two years – beating the $33 a share price tag set during its initial public offering in November 2010.

The resurgence comes as the overall stock market charges from one record to another, but also suggests that investors are impressed by the performance of the giant maker which earlier this month announced $865 million in earnings for the first quarter of 2013.

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Though it has now delivered 3 consecutive quarterly profits, GM is still in the “early innings” of its recovery,” CEO Dan Akerson said over the weekend in South Bend, Indiana, where he delivered the commencement speech for Notre Dame business school graduates.  GM is “on the cusp,” said the executive, of regaining its investment grade debt rating back.  Akerson also suggested in his speech that the maker will rejoin the S&P 500 “before too long.”

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VW Ups Chinese Arms Race

Maker hopes to head off rivals GM, Toyota with new plants.

by on May.17, 2013

VW aims to maintain its lead in China with a mix of new products and more production capacity.

The automotive arms race in China is showing no signs of abating; if anything, the market’s leaders are stocking up more ammo.

General Motors, which this year expects to sell a record 3 million vehicles in China, has announced plans to raise its capacity in the booming market by 20%. Toyota also has disclosed plans to raise their presence in China – which is now the largest passenger car and commercial truck market in the world and is on its way to becoming the top luxury market in the world as well.

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Meanwhile, Volkswagen has marked the beginning of construction on a new assembly plant in Changsha in the south-central province of Hunan.  The factory is being built as part of the maker’s Chinese joint venture Shanghai-Volkswagen (SVW).

“We are expanding our capacity in China to four million vehicles per year by 2018 in order to meet demand from our Chinese customers”, Jochem Heizmann, President and CEO of Volkswagen Group China, said at the groundbreaking.

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Detroit Makers Dominate New Quality Survey

But “the challenge” will be getting import buyers to notice.

by on May.15, 2013

The new Dodge Dart drives off with a win in the latest Total Quality Index.

After long lagging their import rivals in terms of quality and reliability, Detroit makers have begun closing the gap in recent years – and a new study suggests that domestic models may even be taking the lead in many key market segments.

Motown manufacturers led or at least tied for the lead in 12 of 21 categories in Strategic Vision’s closely watched Total Quality Index, products like the Ford Fusion and Dodge Dart besting traditional import stalwarts such as the Toyota Camry and Honda Civic.

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“There’s no questioning domestic car makers want to lead,” said Alexander Edwards, President of Strategic Vision. “For the first time in over a decade our comprehensive and complete study of Quality resulted in more domestic winners than imports.”

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Elio Shows 3-Wheel Prototype

Startup claims it can produce 250,000 units.

by on May.09, 2013

Elio Motor's three-wheel vehicle will be on roads in 2014.

Elio Motors, a small startup automaker operating out of an old GM plant, introduced the key suppliers for its three-wheeled, two-seat car while revealing a few more details about the vehicle and one of the prototypes yesterday.

The 800-pound three-wheeler will sell for $6,800 and the company already has 13,000 orders. There are two markets for the car, according to Paul Elio, the company’s founder and CEO, first-time car buyers and someone with a larger vehicle, like a Cadillac Escalade, who is looking for an inexpensive commuter vehicle.

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The company took over a portion of GM’s former plant in Shreveport, La. earlier this year and expects to begin production of the car, which they say will get 49 mpg city and 84 mpg highway and get a five-star crash rating, next June.

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Chevy Bumps Price for 2014 Corvette to $51,995

New Stingray comes in $1,400 over previous model.

by on Apr.26, 2013

The C7 Corvette unveiled at the Detroit Auto Show.

Anyone who put off buying a Corvette to get into the all-new model is going to have to dig a little deeper to get behind the wheel of the new model. The 2014 Chevrolet Corvette Stingray starts at $51,995, including $995 in delivery charges: a $1,400 jump over the current version. The Stingray convertible will carry a base price of $56,995.

Then again, there had been some concern that Chevy might go significantly higher when the all-new 2-seater hits market late this summer to reflect the major upgrades. Among other things, the base version of the 2014 Stingray will match the power and performance of the mid-range 2013 Corvette Z06.

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“The (2014) Corvette Stingray delivers a combination of performance, design and technology that very few manufacturers can match, and none can even come close for $52,000,” said Chris Perry, vice president, Chevrolet marketing.

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It Anchored the Arsenal of Democracy but old GM Plant Soon to Come Down

Former B-24 plant, ironically, to fall for new aviation museum.

by on Apr.26, 2013

B24s under production at the old Willow Run plant.

Editor’s Note: Most of Detroit’s historic assembly plants have vanished over the years, and the one-time General Motors plant in Willow Run, Michigan, is apparently next to meet the wrecking ball. If the factory simply turned out cars for a few decades it likely wouldn’t have been missed. But as columnist and historian Mike Davis points out, the old factory was one of America’s most important during World War II.

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It was a firing pin in the “Arsenal of Democracy,” at its World War II peak in April 1944 rolling out a new four-engine B-24 heavy bomber roughly once an hour. In contrast to the aviation industry, which then bench-built airplanes one at a time, Willow Run employed automotive-type mass-production assembly lines.

To help fulfill President Roosevelt’s vow that America would build 50,000 airplanes a year to counter the Nazi threat, Ford Motor Company had agreed early in 1941 to use its mass-production mastery for plant construction and then assembly of Consolidated Aircraft’s giant bomber.

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GM’s Akerson Takes Home $11.1 Mil, up 44%.

CEO adds millions in stock to base pay.

by on Apr.25, 2013

GM CEO Dan Akerson with the Chevrolet Volt.

General Motors Chairman and CEO Dan Akerson got a 44% increase in total compensation last year, taking home a total of $11.1 million in total compensation.

That news, detailed in a federal filing, comes after GM tried to downplay earlier reports that the executive was looking for a big pay hike despite the limits imposed by the terms of the maker’s 2009 federal bailout.

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Akerson continued to receive a base salary of “just” $1.7 million last year, the same as in 2011. The big jump came in stock awards that rose by 57%, year-over-year, to $9.3 million.  That includes $2 million in restricted stock options he won’t be able to cash out on until at least 2014.  The executive also received $70,149 in miscellaneous compensation, up from $55,514 in 2012.

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Hybrid and Battery Vehicle Sales Finally Gaining Momentum

But getting buyers back is a problem.

by on Apr.22, 2013

2013 Toyota Prius again dominated the hybrid and advance battery vehicle segment in 2012.

It’s Earth Day, and if you’re thinking about something more environmentally friendly when it’s next time to trade in, you’re not alone.  While sales of “green” cars are often linked to the rise and fall of fuel prices, there’s been a slow but unmistakable increase in demand, especially for hybrids and other battery vehicles which set an all-time record in 2012.

Products like the ever-popular Toyota Prius accounted for 3.1% of the overall U.S. new car market last year, reports data tracking service Experian Automotive, a 49% year-over-year jump from the 2.2% market share in 2011. The downside is that only about one in three hybrid owners buy another gas-electric model when they trade in, according to other industry reports.

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“Hybrid vehicle owners have long been perceived as environmentally conscience consumers,” said Melinda Zabritski, Experian’s director of automotive credit. “While they may have made the vehicle purchase due to caring for the environment, our research shows that hybrid owners are economically minded as well. Hybrid owners tend to have outstanding credit histories, which also has enabled them to obtain financing at lower rates than typical consumers.”

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