Posts Tagged ‘GM’
Is the Consumer Market Ready for Electrics?
Thursday, November 12th, 2009
Over the next three years, more than a dozen pure-electric or hybrid cars are scheduled to hit U.S. markets. The new vehicles, which will be provided by both large automakers like GM and start-ups like Fisker Automotive, will provide plenty of choices for consumers. They promise amazing fuel efficiency, new technologies and futuristic designs.
Automakers are making preparations to begin production of electric vehicles on a large scale. However, one question remains: how practical and sustainable will these new vehicles be for the average consumer?
Electric vehicles present many challenges for car buyers in the years ahead. Some of these problems can be observed by looking at today’s hybrids: Arthur Krieger, a retired police officer in Los Angeles, drives a Prius powered by a relatively small nickel metal hydride battery to assist the gasoline engine. The battery needed replacement after nine years on the road. That’s when Krieger got a nasty surprise: A new one would cost more than $4,800, effectively destroying the cost savings of owning a hybrid in the first place.
Then there is the matter of exactly where to recharge thousands of new electrics. Some experts believe that public charging stations will be the best solution, either those put up by state and local governments or, private companies. At present there is almost no such infrastructure. Building a nationwide network would cost tens of billions of dollars.
That means most electric owners will be charging at home. Plug-in hybrids, which primarily run on batteries but also have gasoline-powered engines to supplement range and power, can get by on standard household current. They’re ready to roll in five or six hours. All-electric cars, however, can take well over a day to charge unless owners invest thousands of dollars in home electrical upgrades.
Ed Kjaer of Southern California Edison cautioned that “not everyone has access to a garage or other place to plug into,” including apartment dwellers or people in urban areas that depend on street parking.
“Plug-in cars are not for everybody at this point,” said Kjaer, who expects that infrastructure such as public charging stations will eventually help level the playing field.
Do you think your fleet could benefit from all-electric plug-in or hybrid vehicles?
Photo courtesy of felixkramer under the Creative Commons License.
Tags: automakers, Electric cars, Fisker Automotive, GM, hybrids, Prius, recharging stations
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Chevrolet Caprice Resurrected for Police Fleets
Tuesday, October 6th, 2009
With the Ford Crown Victoria going out of production, police fleets around the country need a new car for future patrol cars. Now Chevrolet has provided one answer: The new 2011 Chevy Caprice Police Patrol Vehicle. The new Caprice is a full-sized rear wheel drive sedan that will be available in both V-6 and V-8 models, with a range of specialized equipment for law enforcement.
Chevrolet announced the rollout at the annual International Association of Chiefs of Police convention in Denver. The Caprice PPV will be available for order by law enforcement agencies next year and will begin production in 2011.
The Chevy Caprice has a history in law enforcement. The old Caprice joined America’s police forces in 1976, and continued to serve until it was scrapped in 1996 when GM discontinued body-on-frame designs.
The new Caprice PPV has been augmented for law enforcement duty with modern equipment and new features:
- 6.0L V-8 with fuel-saving Active Fuel Management technology and E-85. (V-6 engine will also be offered, beginning in the 2012 model year)
- Optional front-seat-only side curtain air bags.
- Two trunk-mounted batteries, with one dedicated to powering various police equipment.
- Designed for five-passenger seating, providing the upper-center section of the dashboard is used for equipment mounting without the concern of air bag deployment interference.
- Compatibility with in-dash touch-screen computer technology.
- Special front seats designed for the long-term comfort of officers, including space to accommodate the bulk of a typical equipment belt.
The new Caprice is based on GM’s global rear-wheel drive family of vehicles that includes the Camaro. It has the longest wheelbase of the series (118.5 inches) plus a four-wheel independent suspension that allows for super-responsive driving characteristics critical to police.
The Caprice’s 6.0L V-8 is rated at an estimated 355 horsepower (265 kW) with an estimated 384 lb.-ft. of torque, and is backed by a six-speed automatic transmission that is performance-calibrated for police duty.
Photo courtesy of netcarshow.com
Tags: 2011 Chevy Caprice Police Patrol Vehicle, Active Fuel Management, Camaro, Caprice PPV, Chevrolet, Chevy Caprice, Crown Victoria, Denver, E-85, Ford, Ford Crown Victoria, GM, International Association of Chiefs of Police
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GM Pulls Plug on Saturn
Monday, October 5th, 2009
Saturn, GM’s brand of small cars once billed as a new and different kind of car company, is next in line for the chopping block after the demise of Pontiac and Oldsmobile.
GM reached a tentative agreement to sell the Saturn brand to former race car driver and auto magnate Roger Penske in June. But Wednesday, Penske Automotive Group Inc. announced that it is walking away from the deal due to an inability to find a manufacturer to make the cars after GM ceases production of new Saturn models at the end of 2011. GM followed Penske’s announcement with their own, saying that the automaker would simply close down the brand.
The Saturn brand was set up in 1990 to combat the growing popularity of Japanese imports. Now the owners and employees of Saturn dealers nationwide are frantically looking for ways to remain in business and save approximately 13,000 jobs.
“I find this hard to believe,” said Carl Galeana, owner of two Saturn dealerships in suburban Detroit. “Everyone’s been saying we’re right at the goal line.”
The deal between Penske and GM collapsed Wednesday, after an unidentified manufacturer told Penske that its board had rejected a deal to make new Saturn vehicles. GM had agreed to continue making 3 Saturn models after 2011, but all new vehicles would be Penske’s responsibility.
Penske spokesman Anthony Pordon said there is little if any chance that the talks could be reopened. Without another supplier in place before the deal was signed, Penske couldn’t run the risk of taking on Saturn, Pordon said.
GM will stop making Saturns as soon as possible, but no layoffs are expected, said spokeswoman Sherrie Childers Arb. “Those plants produce products for other brands, and we think we can increase volume on those products that will meet market demand,” Childers Arb said.
Galeana said he’s heard nothing yet from GM or Saturn, but if the plan is to phase out the brand and cut the products, he’ll have to come up with other options.
“I assumed if you’re at the goal line, those things would have been figured out,” he said Wednesday. “We’re going to try to put some plan Bs in place at this point.”
Galeana said he’s concerned for his employees and still hopes the deal can be resurrected.
“It’s tough out there, but we’ll keep fighting. That’s all we can do.”
Photo courtesy of multitrack under the Creative Commons License.
Tags: GM, Oldsmobile, Penske, Penske Automotive Group Inc, Pontiac, Roger Penske, Saturn
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Chrysler to Resume Leasing
Friday, September 18th, 2009
After a hiatus of more than a year, Chrysler is ready to resume leasing vehicles starting with the 2010 model year.
“We are pleased to re-enter the leasing market so we can offer customers the opportunity to lease vehicles at rates competitive with the marketplace,” said Peter Fong, head of sales and chief executive of the Chrysler car brand. “Our ability to offer additional financing options will benefit consumers who have long been fans of leasing and appreciate the flexibility this financing option gives them.”
Chrysler Financial stopped offering leases in August 2008 due to tight credit markets and heavy losses on existing SUV leases caused by a decline in popularity. The increased difficulty of leasing cars led to lower sales for Chrysler. Leasing is a popular method of acquiring a vehicle because it allows consumers to make lower monthly payments despite being less cost-effective in the long term.
Leasing was never a huge part of Chrysler’s business, but generally made up 10% to 15% of the company’s sales, said Jesse Toprak, a sales analyst for the auto pricing site Truecar.com.
“We have seen some of those customers go to other manufacturers because of Chrysler not offering leasing,” he said.
Former GM financing arm GMAC Financing Services will now be handling leasing services for Chrysler. GM has also just recently begun offering leasing after dropping out last year for practical purposes during its bankruptcy.
Leasing will be available on all 2010 Chrysler, Jeep, and Dodge vehicles.
Tags: Chrysler, Chrysler Financial, Dodge, GM, GMAC, Jeep, Leasing, Truecar.com
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John McElroy Sees Bright Future for American Automakers
Wednesday, September 16th, 2009
At the 41st annual Automotive Fleet & Leasing Association (AFLA) conference this week, industry analyst and host of Autoline Detroit John McElroy told those in attendance that reduced capacity, increased demand, and changes in the marketplace will “perfectly align” for American automakers in the next five years.
McElroy gave a presentation at the conference entitled “The Golden Years in the U.S. Auto Market, 2010-2015”, which outlined the positive impacts of the economic downturn on the future of the auto industry. He believes that a pent-up demand from harder times will create such a buyer rush that automakers will no longer need to offer incentives to customers, leading to higher profits along with the increased sales. McElroy suggested that Ford would first see massive profits, followed by GM and Chrysler.
While the financial misfortune of the Big Three had a terrible impact on their business, McElroy says that the same situation created several positive conditions that will lead to recovery. He cited lower labor costs, elimination of excess capacity, and lower break-even points as indicators that the automakers will have greater success in the future.
The market itself has also shifted, according to the presentation. Environmental regulations have begun to force consumers away from large trucks and SUVs toward smaller cars. Prices on these new vehicles may rise up to $5,000 per unit to make up for the loss of profits from fewer truck sales and the costs of new technology.
The used car market, he said, is set to experience a “boom time” in the coming years as the number of used vehicles available declines due to fewer trade-ins. Other factors include reduced rentals and fleet sales.
Whether McElroy’s predictions are accurate will have to be seen over the next few years, but an upturn for the auto industry would certainly be a welcome change.
Photo courtesy of nDevilTV under the Creative Commons License.
Tags: AFLA, Autoline Detroit, Automotive Fleet & Leasing Association, Chrysler, Ford, GM, John McElroy, US Auto Market
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Cash for Clunkers: The Statistics
Thursday, August 27th, 2009
Now that the Cash for Clunkers program is over, the numbers are rollin’ in. During the program, 690,114 cars were destroyed. However, only 40% of cars purchased by consumers after trading in their old vehicles were American-made.
Secretary of Transportation Ray LaHood called the CARS program “wildly successful” because of the large jump in sales during its run and added that “American consumers and workers were the clear winners thanks to the Cash for Clunkers program.” Consumers definitely won with CARS. Demand was so high that the program’s initial funding was exhausted in less than a week. It is not yet known exactly how many of the 690,114 sales were pull-forward sales and how many were purchases that would not have been made without the incentive.
Sales of more fuel-efficient vehicles saw a huge spike during the run of Cash for Clunkers, with the average mileage on trade-ins at 15.8 mpg compared to new vehicle mileage of 24.9 mpg. That’s an average improvement in fuel economy of 58%. Although, it is debatable whether the sales of environmentally friendly cars offset the impact of manufacturing those cars.
American automakers did get a boost from Cash for Clunkers. Ford reported its first increase in sales since 2007 and GM added factory shifts to meet product demands. Manny of the cars sold were at least assembled in the United States, but the Big Three automakers only had 38% of total sales.
The biggest seller under the program was Toyota, with 19.4% of final sales. GM and Ford had 17.6% and 14.4% respectively.
*An interesting side note: all of the ten most traded-in vehicles come from US companies.
10 Most Traded-In Vehicles under CARS
- Ford Explorer 4WD
- Ford F150 Pickup 2WD
- Jeep Grand Cherokee 4WD
- Ford Explorer 2WD
- Dodge Caravan/Grand Caravan 2WD
- Jeep Cherokee 4WD
- Chevrolet Blazer 4WD
- Chevrolet C1500 Pickup 2WD
- Ford F150 Pickup 4WD
- Ford Windstar FWD Van
10 Most Purchased Vehicles under CARS
- Toyota Corolla
- Honda Civic
- Toyota Camry
- Ford Focus
- Hyundai Elantra
- Nissan Versa
- Toyota Prius
- Honda Accord
- Honda Fit
- Ford Escape FWD
Tags: Big Three Automakers, CARS, Cash for Clunkers, Ford, fuel efficiency, GM, Ray LaHood, Toyota, US Secretary of Transportation
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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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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.”
Tags: American Recovery and Reinvestment Act, ARRA, Chrysler, Federal Acquisition Service, Federal fleet, Ford, fuel efficient, General Motors, General Services Administration, GM, James A. Williams
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GM To Continue Fleet Operations with Some Possible Delays
Friday, June 5th, 2009
In the wake of filing for bankruptcy, GM’s Fleet and Commercial Operations General Manager Jim Campbell posted a statement on the company’s website assuring fleet owners and operators that they will be protected as the company is restructured.
In the letter, Campbell assures that GM “intends to honor 2009 fleet agreements for ordered and out of stock purchases, including applicable statements”, “honor warranty commitments given at the time of purchase to owners” and that “service for all brands will continue to be available through authorized GM service facilities, with genuine GM parts”.
The letter also states that GM plans to continue with vehicle production and that GM is “fully committed to to the fleet and commercial business.
On a separate posting, GM answers some FAQ’s concerning the filing, the automaker announced that their could be some delays on current vehicle and supply orders, but the their Fleet Operations Center (1 800 FLEET OPS) will continue to operate without interruption.
The FAQ section also goes into great detail on parts and services concerns and fleet customer incentive programs.
If you own or operate a fleet you purchased from GM, the site does a pretty good job at addressing concerns.
Read the letter from Jim Campbell and the FAQ here
Tags: bankruptcy, FAQ, fleet, Fleet Operations Center, GM, GM Fleet and Commercial Operations, Jim Campbell
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The man who once saved Chrysler can’t save his own car
Wednesday, June 3rd, 2009
GM’s bankruptcy means Lee Iacocca has to return company vehicle
Lee Iacocca, the former CEO, chairman and pitchman for Chrysler in the 1980s, will apparently lose what was supposed to be a guaranteed life-long company car as a result of GM’s Chapter 11 bankruptcy filing.
Yahoo News posted a Reuters press release reporting that Chrysler CEO Robert Nardelli told a bankruptcy court last Thursday that Chrysler also wouldn’t have to pay Iacocca’s pension if GM received bankruptcy protection, which it did on Monday.
GM reached out to former executives with similar statements. It seems other senior executives with company vehicles are being asked to return their cars or pay for them as well. “The New Chrysler does not expect to reinstate the car program,” the company said.
We recommend that GM read our blog post about reclaiming company cars from former employees.
Tags: bankruptcy, Chapter 11, Chrysler, GM, Lee Iacocca, Reuters, Robert Nardelli, Yahoo News
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