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Posts Tagged ‘General Motors’

Chrysler to Offer Live TV

Monday, November 2nd, 2009

backseat tvsNot 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.

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GM Recalls Over 10,000 Pontiac Vibes

Thursday, October 15th, 2009

pontiac vibeGeneral 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.

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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 Kelly 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.

enterpriseEnterprise 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.

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Cash For Clunkers Faces Crash

Thursday, August 20th, 2009

Picture 1When we recently reported on the status of the Cash for Clunkers program, it seemed like the program was on its way to greater success and more funding.  But now it looks like new problems may mean Cash for Clunkers is broken for good.

Auto dealers are pulling out of the program in large numbers due to concerns that they will not receive reimbursement for the money they have advanced to their customers in exchange for their old vehicles.  Each customer has been eligible for up to $4,500 dollars, resulting in advances of over $1 billion so far.  Slow processing of the paperwork involved in each transaction has left dealers with serious cash flow issues, as well as creating concerns that more deals have been made already than the program can support.  The most recent Department of Transportation figures put the number of deals made at over 457,000.

General Motors is planning to keep the program alive with its dealers by providing cash advances to them in the amount of the federal reimbursement they are currently owed. US Secretary of Transportation Ray LaHood is also doing what he can to reassure dealers, asserting that the government has “put an enormous number of people on the task of processing the paperwork” and that “there will be no car dealer that won’t be reimbursed.”

The National Automobile Dealers Association released a statement this week saying that it would be best to suspend the Cash for Clunkers program now rather than wait for funds to be depleted: “Given the popularity of the program and the rapid pace at which ‘clunker’ deals are being done, it is difficult, if not impossible, to accurately project the ‘burn rate’ of available funds.”

Customers are also beginning to lose interest in Cash for Clunkers, making about 40 percent fewer claims than earlier this month.  This is partially due to depletion of eligible customers and customers who are interested in new cars postponing their purchases until prices get back to normal.

If you have been thinking about utilizing the benefits of Cash for Clunkers, now may be your last chance!  Secretary LaHood has just announced that Cash for Clunkers will end on Monday, August 24 at 8pm ET.  Turn in those clunkers this weekend!

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GM’s Vision for the Future

Tuesday, August 18th, 2009

The newly-resurrected General Motors recently announced its plans for new vehicles to debut between now and 2011.  Ten Chevrolet models, another ten Buick and GMC models, and five new Cadillacs will make their way onto the market in the next two years.  This announcement comes only months after GM declared bankruptcy and transferred ownership primarily to the United States government.
The most talked-about vehicle in the new GM lineup is the 2011 Chevrolet Volt, a plug-in electric hybrid.  Recent tests estimate the city fuel economy of the volt at 230 miles per gallon.  The Volt is capable of traveling up to 40 miles on one charge of its battery and can extend its range to over 300 miles with its hybrid gasoline engine.  The Volt is likely to be marketed as a commuter vehicle, as studies from the US Department of Transportation show that 80 percent of Americans commute fewer than 40 miles a day. With the Volt’s fuel efficiency, vehicle owners could commute to and from work purely on electricity.
The rest of GM’s branches also have big plans: Cadillac is planning to release a new luxury sport sedan as well as the CTS Sport Wagon and SRX crossover, both of which offer lower emissions and greater fuel economy than previous models.  Buick also plans to release a new luxury vehicle with the LaCrosse as well as a compact SUV with a fuel economy of over 30 miles per gallon, to be followed later by a hybrid version.  GMC will also release a more efficient crossover SUV.
GM’s plan also involves a new approach in its relationship with customers.  A combination of online communication and face-to-face meetings with customer will better inform GM of customer satisfaction and concerns. An addition to the FastLane blog, “The Lab” is a microsite that will allow customers to have input on future designs and qualify for later studies.
With more fuel-efficient vehicles entering the market, FleetCards USA reminds you that we have a fuel plan to suit your needs whatever they may be.  For more information on customizing your plan, click here.

voltThe newly-resurrected General Motors recently announced its plans for new vehicles to debut between now and 2011.  Ten Chevrolet models, another ten Buick and GMC models, and five new Cadillacs will make their way onto the market in the next two years.  This announcement comes only months after GM declared bankruptcy and transferred ownership primarily to the United States government.

The most talked-about vehicle in the new GM lineup is the 2011 Chevrolet Volt, a plug-in electric hybrid.  Recent tests estimate the city fuel economy of the volt at 230 miles per gallon.  The Volt is capable of traveling up to 40 miles on one charge of its battery and can extend its range to over 300 miles with its hybrid gasoline engine.  The Volt is likely to be marketed as a commuter vehicle, as studies from the US Department of Transportation show that 80 percent of Americans commute fewer than 40 miles a day. With the Volt’s fuel efficiency, vehicle owners could commute to and from work purely on electricity.

The rest of GM’s branches also have big plans: Cadillac is planning to release a new luxury sport sedan as well as the CTS Sport Wagon and SRX crossover, both of which offer lower emissions and greater fuel economy than previous models.  Buick also plans to release a new luxury vehicle with the LaCrosse as well as a compact SUV with a fuel economy of over 30 miles per gallon, to be followed later by a hybrid version.  GMC will also release a more efficient crossover SUV.

GM’s plan also involves a new approach in its relationship with customers.  A combination of online communication and face-to-face meetings with customer will better inform GM of customer satisfaction and concerns. An addition to the FastLane blog, “The Lab” is a microsite that will allow customers to have input on future designs and qualify for later studies.

With more fuel-efficient vehicles entering the market, FleetCards USA reminds you that we have a fuel plan to suit your needs whatever they may be.  For more information on customizing your plan, click here.

Photo courtesy of dsix under the Creative Commons License.

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GM Prepares to Return to Leasing

Tuesday, August 4th, 2009

This week, Bloomberg has reported that General Motors is planning to begin leasing vehicles again sometime in the month of August. GM suspended their leasing program after slumping resale values drove the auto giant away from the practice.
GM has yet to reveal which vehicles will be available for leasing but confirms that they are hoping to bring back leasing options “in the critical segments such as luxury,” according to Vice President of U.S. Sales Mark LaNeve.  LaNeve says that GM’s sales suffered after the termination of the leasing program, especially in luxury vehicles and among potential customers in the Northeastern states.  However, GM spokesmen are skeptical that the success of the leasing program will ever reach the level it previously occupied.
The automaker has yet to make any decisions on which models will be covered or what the final structure of the leasing program may be. Whether this program will affect GM’s fleet operations has yet to be determined.
GM’s leasing structure is beneficial to sales of their luxury models, making it easier for customers to eventually purchase the vehicle and supply GM with a final sale.

gm-logoThis week, Bloomberg has reported that General Motors is planning to begin leasing vehicles again sometime in the month of August. GM suspended their leasing program after slumping resale values drove the auto giant away from the practice.

GM has yet to reveal which vehicles will be available for leasing but confirms that they are hoping to bring back leasing options “in the critical segments such as luxury,” according to Vice President of U.S. Sales Mark LaNeve.  LaNeve says that GM’s sales suffered after the termination of the leasing program, especially in luxury vehicles and among potential customers in the Northeastern states.  However, GM spokesmen are skeptical that the success of the leasing program will ever reach the level it previously occupied.

The automaker has yet to make any decisions on which models will be covered or what the final structure of the leasing program may be. Whether this program will affect GM’s fleet operations has yet to be determined.

GM’s leasing structure is beneficial to sales of their luxury models, making it easier for customers to eventually purchase the vehicle and supply GM with a final sale.

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Gov’t Begins Replacing Federal Fleet with $210 Million in Fuel Efficient Vehicles

Wednesday, June 17th, 2009

Well, Chrysler, Ford and General Motors sold some vehicles this month. The Big Three received a substantial order on June 1 from one big spending customer — the United States Federal Government.
GSA’s official press release stated that The U.S. General Services Administration purchased $210 million of new fuel efficient vehicles, with the goal that each new vehicle will replace an older, less efficient one in the federal fleet.
The agency ordered 14,105 fuel efficient vehicles with $210 million from the American Recovery and Reinvestment Act (ARRA), bringing the total number of fuel efficient vehicles ordered by GSA using ARRA funds to 17,205 at a cost of $287 million. The breakdown includes:
• 2,933 Chrysler vehicles for $53 million
• 7,924 Ford vehicles for $129 million
• 6,348 General Motors vehicles for $105 million
By September 30, 2009, another $15 million will be spent on advanced technology federal buses and electric vehicles.
“GSA is committed to spending Recovery dollars quickly and wisely,” said Commissioner James A. Williams of GSA’s Federal Acquisition Service. “Simultaneously, we are focused on acquiring vehicles that will provide long-term environmental benefits and savings by increasing the fuel efficiency of the Federal fleet.”
Well, Chrysler, Ford and General Motors sold some vehicles this month. The Big Three received a substantial order on June 1 from one big spending customer — the United States Federal Government.
GSA’s official press release stated that The U.S. General Services Administration purchased $210 million of new fuel efficient vehicles, with the goal that each new vehicle will replace an older, less efficient one in the federal fleet.
The agency ordered 14,105 fuel efficient vehicles with $210 million from the American Recovery and Reinvestment Act (ARRA), bringing the total number of fuel efficient vehicles ordered by GSA using ARRA funds to 17,205 at a cost of $287 million. The breakdown includes:
• 2,933 Chrysler vehicles for $53 million
• 7,924 Ford vehicles for $129 million
• 6,348 General Motors vehicles for $105 million
By September 30, 2009, another $15 million will be spent on advanced technology federal buses and electric vehicles.
“GSA is committed to spending Recovery dollars quickly and wisely,” said Commissioner James A. Williams of GSA’s Federal Acquisition Service. “Simultaneously, we are focused on acquiring vehicles that will provide long-term environmental benefits and savings by increasing the fuel efficiency of the Federal fleet.”
Well, Chrysler, Ford and General Motors sold some vehicles this month. The Big Three received a substantial order on June 1 from one big spending customer — the United States Federal Government.
GSA’s official press release stated that The U.S. General Services Administration purchased $210 million of new fuel efficient vehicles, with the goal that each new vehicle will replace an older, less efficient one in the federal fleet.
The agency ordered 14,105 fuel efficient vehicles with $210 million from the American Recovery and Reinvestment Act (ARRA), bringing the total number of fuel efficient vehicles ordered by GSA using ARRA funds to 17,205 at a cost of $287 million. The breakdown includes:
• 2,933 Chrysler vehicles for $53 million
• 7,924 Ford vehicles for $129 million
• 6,348 General Motors vehicles for $105 million
By September 30, 2009, another $15 million will be spent on advanced technology federal buses and electric vehicles.
“GSA is committed to spending Recovery dollars quickly and wisely,” said Commissioner James A. Williams of GSA’s Federal Acquisition Service. “Simultaneously, we are focused on acquiring vehicles that will provide long-term environmental benefits and savings by increasing the fuel efficiency of the Federal fleet.”

us treasuryWell, Chrysler, Ford and General Motors sold some vehicles this month. The Big Three received a substantial order on June 1 from one big spending customer — the United States Federal Government.

GSA’s official press release stated that The U.S. General Services Administration purchased $210 million of new fuel efficient vehicles, with the goal that each new vehicle will replace an older, less efficient one in the federal fleet.

The agency ordered 14,105 fuel efficient vehicles with $210 million from the American Recovery and Reinvestment Act (ARRA), bringing the total number of fuel efficient vehicles ordered by GSA using ARRA funds to 17,205 at a cost of $287 million. The breakdown includes:

• 2,933 Chrysler vehicles for $53 million

• 7,924 Ford vehicles for $129 million

• 6,348 General Motors vehicles for $105 million

By September 30, 2009, another $15 million will be spent on advanced technology federal buses and electric vehicles.

“GSA is committed to spending Recovery dollars quickly and wisely,” said Commissioner James A. Williams of GSA’s Federal Acquisition Service. “Simultaneously, we are focused on acquiring vehicles that will provide long-term environmental benefits and savings by increasing the fuel efficiency of the Federal fleet.”

Photo courtesy of futureatlas.com under the Creative Commons License
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‘Cash for Clunkers’ revving up on Capitol Hill

Thursday, May 14th, 2009

clunker-picCongress is close to agreeing on a one-year “Cash for Clunkers” plan that would give consumers up to $4,500 if they turn in their old cars, light-duty truck or work truck and put the money toward a new, more fuel-efficient replacement, according to Ken Belson in the New York Times blog.

But it can’t be just any kind of clunker to cash in. Your vehicle must be a car or light-duty truck that gets less than 18 miles a gallon. To get the full $4,500, your new car must get at least 10 miles a gallon more than your old one.

President Obama has endorsed the program, which is part of a larger energy bill, as a way to jump-start the troubled U.S. auto industry, remove 1 million older cars off the road, and begin to curb U.S. emissions.

“This legislation would give consumers an incentive to turn over their old, inefficient vehicles, saving 80,000 barrels of motor fuel every day,” Senator Collins said in the original January 2009 press release from the office of Sen. Dianne Feinstein’s office, which co-authored the bill.

BusinessFleet.com wrote that under the plan, pre-2002 work-truck pickups and 8,500 to 10,000 pound vans would also be good for $3,500 toward a new work truck in the same or smaller weight class, because newer vehicles are likely to be more fuel efficient.

General Motors said in a statement that similar scrappage programs around the world have proven to be successful in jump-starting auto industry sales.

We want to know what you think? Would the payout be enough to upgrade your fleet?

Photo copyright of Chrysler383 under the Creative Commons License

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Fleet Buyers in the Middle of Government Bailout Controversy

Friday, May 8th, 2009

spa_5809This week the USA Today reported on another example of the built-in controversy that comes with being a company whose a recipient of government bailout money. This time it hits close to home for those of us in the fleet industry.

Facing possible bankruptcy, 500 of General Motors best fleet customers were treated to a luxurious week at the Wild Horse Pass Resort & Spa in Arizona, paying for airfare and lodging for the majority of their guests.

This coming after GM borrowed $15.4 billion from the government this year. A GM spokesperson says the event is scaled back from previous years and is held as a way to promote GM’s 2010 products to a group that accounts for over a quarter of the companies business.

Critics say that any company that takes government money needs to spend it wisely before it takes any more. (A reported $30 billion in additional funds may be needed for GM to avoid bankruptcy)

The controversy brings up an interesting debate on government bailout money that seems to be a little different from the outrage caused by other companies in the last few months that rewarded employees with bonus packages and lavish vacations.

In the case of GM, this retreat was more about entertaining customers and staying competitive in the very lucrative fleet sales business. The big question is, do you want your taxpayer money to go to financing these sales meetings, or should GM be held to rigid fiscal responsibility until they’ve proven they are on the road to recovery.

Let us know what you think and tell us this: Would you have gone on the trip if you were extended an invitation? Even better, if you were one of the 500 who spent the week at the resort courtesy of GM, was it as good/bad as it sounds?

To read the entire story, click here

Photo copyright of un-sung under the Creative Commons license

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A Big IDEA

Friday, May 1st, 2009

The changes in the auto industry are becoming more and more evident everyday and your fleet could be on the forefront of innovation that could be a real game changer for automakers and the oil industry.

Last week, Bright Automotive, a start up company based in Indiana unveiled the IDEA, a plug-in hybrid electric van that can get a 100-miles per gallon and they are looking to businesses and government agencies to be their initial customers.

Bright has plans to produce 50,000 vehicles a year beginning in 2013. CEO John Waters, who created the battery pack for General Motor’s first electric car, is targeting fleets because of the large numbers of vehicles bought at one time.

Bright Automotive is just one of the many start up companies challenging the more established auto makers with the kind of technology that will reduce emissions and provide millions of dollars in savings on gas each year.

Though no price is available for the IDEA, production is set to begin in 2012 and be ready for distribution the following year.idea1_42909idea2_42909idea3_42909

In short, the future will be here sooner than you think and some of these high mileage vehicles may make you think twice about purchasing new vehicles for your fleet until newer options are made available and are affordable as well.

To learn more about Bright Automotive and a look at the IDEA click here.

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