Posts Tagged ‘General Motors’
General Motors: Back in Black
Thursday, May 20th, 2010
General Motors returned to profitability in the first three months of the year, the automaker reported Monday. It was GM’s first profit since 2007.
GM, which emerged from bankruptcy last July, earned $865 million on revenue of $31.5 billion. A year ago, GM’s predecessor company lost nearly $6 billion on revenue of only $22.4 billion, as sales plunged and the company hurtled toward bankruptcy.
GM had reported losses the two previous quarters since emerging from bankruptcy. But the profit in the first quarter was expected.
Worldwide vehicle sales jumped 24% to 1.9 million vehicles, as sales in the U.S. rose 15% and sales in China surged 71%. GM also had free cash flow of $991 million in the period, leaving it with $35.7 billion in cash on hand.
“We’re pleased with our first-quarter performance, in particular achieving profitability,” said chief financial officer Chris Liddell in the company’s statement. “We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet.”
This return to profitability is an important first step for the company being able to sell shares in an initial public offering, and for taxpayers to get back some or all of the $50 billion in bailouts the automaker received last year. GM repaid its government loans in April, but most of the help was in return for Treasury receiving a 61% stake in the automaker. A sale of stock and a strong earnings stream are necessary for the government to get that money back.
GM had previously said it hoped to be ready for an IPO by the end of the year, but that timing would depend on both profitability and market conditions. Liddell wouldn’t give any further guidance on the timing Monday.
“Making a profit in the first quarter means we’re better off than we would have been otherwise,” he said. “That’s heartening. I wouldn’t take too much from that. The IPO will happen in good time when the company is ready and the market is ready.”
[via CNN Autos]
Photo courtesy of paul (dex) down under under the Creative Commons License
Tags: bankruptcy, Chris Liddell, General Motors, government loans, profitability, vehicle sales
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Driverless Cars Not So Far Away
Tuesday, April 13th, 2010
The Wall Street Journal thinks that the days of driving our own cars may soon be a thing of the past. With automated car technology on the rise, will the fleet driver also fade away with time? Decide for yourself:
Consumers today can buy cars that steer themselves; accelerate and brake to maintain a safe driving distance from cars ahead; and detect and avoid collisions with other cars on all sides. Making them completely driverless will involve little more than a software upgrade.
Driverless technologies were demonstrated in 1997 on a California freeway when eight cars without drivers successfully operated just one car length apart at 65 miles per hour. In 2007, six cars negotiated the Defense Advanced Research Projects Agency Urban Challenge, following all traffic rules in an urban environment with other vehicles.
At the 2007 event, General Motors vice president of research Lawrence Burns predicted that completely driverless cars would be on the market by 2018. He added that the primary obstacles were legal and bureaucratic, not technological.
Driverless vehicles offer huge advantages over current autos. Driverless cars could eliminate highway congestion, save fuel and reduce carbon emissions, and bring mobility to those who cannot operate a traditional vehicle.
The American automobile fleet turns over every 18 years, so if Mr. Burns’s prediction that driverless cars will hit the market by 2018 comes true, we could have a completely driverless system by 2036. State highway officials could accelerate this timetable by working with auto manufacturers to set standards and a transition path. State and local highway agencies could install wireless communication systems at major intersections and highways—a much less costly undertaking than building new roads.
To read the Journal’s full story, click here.
Photo courtesy of Mess of Pottage under the Creative Commons License
Tags: comsumers, driverless cars, General Motors, Lawrence Burns, technologies, The Wall Street Journal, vehicles
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Fleet Sales Boost Auto Industry
Monday, April 5th, 2010
An $800 per unit increase in fleet-commercial prices and an 18 percent jump in volume helped the auto industry reach nearly $7.35 billion in fleet-commercial sales in February, up from $6 billion a year ago, according to CNW Market Research.
“This is occurring in all channels of the fleet-commercial business. It’s estimated that 11 percent of all new fleet and commercial vehicles are hybrids or biodiesel models,” Spinella wrote.
General Motors and Ford reduced their fleet-commercial sales in February, while Chrysler, Toyota, Nissan and Honda all experienced increases compared to the year-ago period.
Toyota had the largest increase in market share – from 13.92 percent in February 2009 to 16.27 percent in February 2010. The jump reflects a high fleet and commercial demand for the Prius and other Toyota hybrids, which eased in February due to buyers’ concerns about the manufacturer’s sudden-acceleration issues, Spinella wrote.
Honda also saw a notable jump in market share, but it was due to higher demand among small and micro businesses. The manufacturer’s market share was 6.92 percent in February 2010, up from 4.51 percent in February 2009.
Nissan’s market share was 7.51 percent in February 2010, up from 6.29 percent in the year-ago period.
Photo courtesy of emilio labrador under the Creative Commons License
Tags: auto industry, fleet sales, Ford, General Motors, Honda, Nissan
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General Motors Makes Fuel Cells Practical
Thursday, March 18th, 2010
General Motors Co. said it is testing a production-intent hydrogen fuel cell system that can be packaged in the space of a traditional four-cylinder engine and be ready for commercial production in 2015.
The system is half the size, 220 pounds lighter and uses about a third of the platinum of the system in the Chevrolet Equinox Fuel Cell electric vehicles used in Project Driveway.
The Project Driveway market test and demonstration fleet of fuel cell electric vehicles began in late 2007 and has amassed nearly 1.3 million miles of everyday driving in cities around the world.
“We will continue to use the Project Driveway fleet strategically to advance fuel cell technology, hydrogen infrastructure, and GM’s vehicle electrification goals,” Freese added.
The first long-term loan of the new-look Chevy fuel cell vehicle will be to Stephanie White, a fuel cell advocate who was among the first Project Driveway participants and regularly blogs about zero-pollution fuel cells. Freese presented White with the keys to the car on Tuesday.
“Driving the Chevy fuel cell around L.A. has been an amazing experience,” White said. “People are always stopping me to ask questions about the vehicle and I tell them how powerful and eco-friendly it is.”
Photo courtesy of ideowl under the Creative Commons License
Tags: Chevy, electric vehicles, fuel cells, General Motors, hydrogen fuel, market test, Project Driveway
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Recall Roundup
Friday, March 5th, 2010
More major automakers have issued recalls as of late, so we would like to take a moment to pass along this critical information for fleet managers:
General Motors Co. is recalling 1.3 million Chevrolet and Pontiac cars sold in the U.S., Canada and Mexico to fix power steering motors. The recall covers 2005 to 2010 Chevrolet Cobalts, 2007 to 2010 Pontiac G5s, 2005 and 2006 Pontiac Pursuits sold in Canada and 2005 and 2006 Pontiac G4s sold in Mexico.
Nissan North America is recalling nearly 540,000 vehicles — the majority of which are in the U.S. — to inspect and, if necessary, repair brake pedal pins and fuel-gauge components on certain trucks and minivans. The vehicles involved in the recall to address the brake pedal pins are MY 2008-2010 Nissan Titans, Armadas, Quests and Infiniti QX56s.
Autocar is recalling nearly 2,000 MY 2008-2009 ACX heavy-duty Class 8 trucks because of a problem with the steering gear mounting.
If you have any of these vehicles in your fleet, take action to fix these problems before they cost you even more.
Photo courtesy of themotoringchef under the Creative Commons License
Tags: brake pedal, Chevrolet Cobalts, General Motors, Nissan, Pontiac G4, Pontiac G5, Pontiac Pursuits, power steering, recall
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GM to Manufacture Electric Motors
Friday, February 5th, 2010
General Motors will soon become the first major U.S. automaker to design and manufacture electric motors for its hybrid and electric vehicles, expanding its current in-house electric vehicle development capabilities.
By taking on the production of its motors, GM can improve the quality, reliability and performance of electric motors while lowering manufacturing costs. The first GM-designed and built electric motors are on schedule for release in 2013 in a new generation of hybrids.
“Electric motor innovation supported the first wave of automotive growth a century ago with the electric starter, which eliminated the need for a hand crank, and revolutionized automotive travel for the customer,” said Tom Stephens, GM vice chairman, Global Product Operations. “We think the electrification of today’s automobiles will be just as revolutionary and just as beneficial to our customers. Electric motors will play a huge role in that.”
“In the future, electric motors might become as important to GM as engines are now,” Stephens said. “By designing and manufacturing electric motors in-house, we can more efficiently use energy from batteries as they evolve, potentially reducing cost and weight – two significant challenges facing batteries today.”
GM was given a $105 million dollar grant by the U.S. Department of Energy in August to build up its capabilities for the production of the new electric motors and related components. The automaker will still purchase and co-design new motors with outside suppliers as well.
Photo courtesy of jurvetson under the Creative Commons License.
Tags: electric, General Motors, GM, manufacturing, U.S. Department of Energy
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OnStar Helps Find Carjackers
Wednesday, January 6th, 2010
With the help of GM’s OnStar in-vehicle safety and security system, police have apprehended two suspects accused of hijacking a vehicle from Julia Corker, the 22-year-old daughter of U.S. Sen. Bob Corker (R-TN).
Steven Alston, 25, and Dewalden Connors, 22, are now in custody in a facility in Prince George’s County, Md., the Chattanooga Times Free Press reported. They are both charged with possession of a stolen vehicle. Other charges were pending.
According to Sen. Corker’s spokesman, Julia Corker was driving home about 9:15 p.m. on Dec. 2 when someone knocked on her window at a stop sign near the Verizon Center. While she responded to one man asking for directions, another man allegedly got in the passenger side of her vehicle and forced her out. She was thrown to the pavement but suffered no serious injuries.
D.C. police said they used the onboard OnStar system to track down the stolen Chevy Tahoe, and the suspects were taken into custody in Suitland. Ms. Corker positively identified the suspects later that evening.
Photo courtesy of OnStar Connections under the Creative Commons License.
Tags: Bob Corker, Chattanooga Times Free Press, Chevy, Chevy Tahoe, General Motors, GM, OnStar, Verizon Center
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Chrysler to Offer Live TV
Monday, November 2nd, 2009
Not to be outdone by General Motors’ plans to provide wi-fi in its new vehicles, Chrysler will soon bring live television programming, including sports and news programs, to its vehicles starting in late December of this year.
Chrysler will offer the service, called FLO TV Auto Entertainment as a dealer-installed option from the Mopar accessories unit. The service will provide up to 20 channels of live programming, including CBS, CNBC, Comedy Central, FOX News, MSNBC, MTV, and NBC 2Go.
The system is designed mainly for rear-seat passengers to enjoy on seat-mounted monitors, though front-seat passengers will be able to watch programming on navigation screens when the vehicle is in park.
Chrysler spokeswoman Ann Smith said the automaker would disable all front-seat viewing where prohibited by state law. She also confirmed that Chrysler will continue supplying the child-focused Sirius Backseat TV, which provides Nickelodeon, The Disney Channel, and Cartoon Network Mobile.
FLO TV can be installed in 2008-10 model vehicles that have fctory-installed DVD entertainment systems. Among them are the Chrysler Town & Country; Jeep Grand Cherokee and Commander; Dodge Grand Caravan, Journey and Nitro, Ram 1500 and 2500/3500.
Owners of 2008-10 vehicles without factory-installed DVD systems can access FLO TV through aftermarket rear-seat DVD screens from Mopar, which are installed in headrests. Early next year, Mopar also will have DVD screens that are installed lower in the seatback
Mopar’s suggested retail price for the TV service is $629 plus installation. Buyers would get a year of programming free. The normal price for a subscription is $119 a year or $299 for three years.
Tags: Chrysler, Dodge Grand Caravan, FLO TV, General Motors, Jeep Grand Cherokee, Mopar, Sirius Backseat TV
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GM Recalls Over 10,000 Pontiac Vibes
Thursday, October 15th, 2009
General Motors is recalling 10,119 MY 2009-2010 Pontiac Vibe vehicles equipped with a 1.8L engine and originally sold in, or currently registered in, a state that can have freezing temperatures during winter.
According to the National Highway Traffic Safety Administration, the intake manifold suction port for the brake vacuum can lock up during extremely cold conditions. This can occur because of the freezing of condensation resulting from positive crankcase ventilation. This could lead to an increase in vehicle stopping distance, raising the risk of a collision.
Dealers will modify the brake vacuum line free of charge. The recall involves vehicles from the following states: Alaska, Colorado, Idaho, Illinois, Iowa, Kansas, Maine, Michigan, Minnesota, Montana, Nebraska, Nevada, New Hampshire, New York, North Dakota, South Dakota, Vermont, Wisconsin and Wyoming. A special coverage for vehicles registered in all other states will be implemented in the same time frame, NHTSA said.
The safety recall is expected to begin on or before Oct. 23. Vehicle owners can reach Pontiac at (800) 620-7668.
Photo courtesy of resedabear under the Creative Commons License.
Tags: General Motors, National Highway Traffic Safety Administration, NHTSA, Pontiac, Pontiac Vibe
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Enterprise Leaves Out Airbags on Impala Fleet
Monday, August 24th, 2009
Enterprise Rent-a-Car saved millions of dollars by deleting side-curtain air bags from thousands of fleet vehicles, according to the Kansas City Star.
Enterprise purchased about 66,000 2006-08 model-year Chevrolet Impalas missing side-curtain airbags. The lack of airbags saved Enterprise about $175 per vehicle, for a total savings of $11.5 million.
After the Impalas were removed from fleet service, the rental company and several dealers nationwide made the cars available for resale to consumers. However, when the cars were advertised online, they were listed as having the missing safety feature. 745 buyers took the company up on their offer, unaware that the cars were missing side-curtain airbags.
Enterprise maintains that no federal mandates prevented them from omitting side-curtain airbags from the vehicles and stand behind their decision to do so. The St. Louis- based company did admit, however, that they made a mistake in online advertising. Enterprise VP for Corporate Communications Christy Conrad stated that there was a “glitch” in Enterprises’s system that listed the cars (only online) of having side-curtain airbags.
Enterprise plans to rectify the issue by sending letters to every person who bought one of the vehicles explaining the problem. The company will also offer to buy back the cars at $750 above Kelley Blue Book value.
Roughly 3,000 Impalas have been sold to consumers on Enterprise-owned lots, both properly and improperly advertised.
GM says it has since discontinued the option of removing side-curtain airbags for the 2009 model year.
Remember: always make sure you know what your fleet is getting when you buy and sell vehicles. Thorough inspections and communications with sellers are essential to ensure the health of new fleet vehicles.
Tags: Chevrolet Impala, Enterprise Rent-a-Car, General Motors, GM, Kansas City Star, Kelley Blue Book
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