Hong Kong, and I speak from experience, is a great place to incorporate, to save taxes, and to throw a cloak of secrecy over financial operations which otherwise would be out in the open. In the case of GM, it is also a great place to save their Korean behinds. In December 2009, GM sold a 1% stake in its Shanghai-GM (SGM) joint venture to the Hong Kong part of its Chinese partner SAIC for the paltry sum of $85m. GM also put its India business into a Hong Kong based joint venture (HKJV). GM provided the India business, SAIC provided cash. As it turned out later, unearthed in Ed Niedermeyer’s seminal oeuvre about the mystery golden share, SAIC also underwrote a $400 million loan. In its darkest hour at the end of 2009, GM was kept afloat by the Chinese. Now, history seems to repeat itself in some convoluted way. (Read More…)
If you’re shopping for a compact American crossover, Chevy’s Equinox is likely on your list. If however you’re looking to rent a small crossover, the Chevrolet Captiva Sport is probably what you’ll get for $29.95 a day from Hertz. While you’re bound to see them on the streets, you can’t buy them new unless you’re a fleet customer. That’s because the Captiva is designed to do two things: keep fleet sales of GM’s other CUVs low and continue to amortize the cost of Americanizing the Opel Antara. Yep, that’s right, under the bow tie, the Captiva Sport is none-other than the 2008-2010 Saturn VUE, aka the Opel Antata, Holden Captiva and Dawewoo Winstorm MaXX. We spent a week in a Hertz rental to find out if Chevy’s rental soft-roader should be on your used CUV shopping list.
During my visit to Vietnam last month, I photographed many Honda Super Cubs, but I always kept one eye open for other interesting vehicles. I spotted a few Toyota Crown Royal Saloons, which was cool, but catching a
Geo Chevrolet Tracker at a Hanoi intersection was one of the weirder sightings. Studying the photograph later, I realized that three of the four (non-two-wheeled) vehicles in the frame were GM products that show the breadth of The General’s Asian empire. (Read More…)
If you have a pulse and a willful ignorance of the local speed limit, you’re probably not interested in the Chevrolet Spark. If you’re a media-savvy hipster who’s on Facebook sixteen hours a day, you’re probably not interested in the Spark, either. If you’re a techno-geek or an eco-geek, you’re probably still not interested in the Chevrolet Spark.
If you need something to get you from point Alpha to point Beta and aren’t willing to pay too much, you might be interested in the Spark. But only after all the alternatives have been removed from your short-list as being too sensible. And even then, a lobotomy might be required to help you make up your mind.
That’s a shame, because the Spark isn’t really that bad.
Having been asked by a certain newspaper to review the new book “American Wheels, Chinese Roads: The Story of General Motors in China [more info on that review coming soon], I’ve been spending my quiet moments over the last week or so looking into GM’s Chinese operations. The book’s author, Michael Dunne, documents GM’s rise in the Middle Kingdom from the perspective of a well-informed outsider, revealing just how delicate one of GM’s best-performing global maneuvers really was. But after following the rise of GM in China, Dunne notes the December 2009 announcement that GM was selling a 1% stake in its Shanghai-GM (SGM) joint venture to its Chinese partner SAIC (for the paltry sum of $85m no less), arguing that GM had made a dangerous leap of necessity. This sale, implies Dunne, could well have been the tipping point that leads to GM being surpassed by its erstwhile junior (in size, technology and global reach) partner, SAIC. And, in the words of “one GM executive who used to work in China,” GM would need
good luck getting that back.
But, back in June, GM CEO Dan Akerson told GM’s shareholder meeting that he wants to do just that, saying
We have an option to buy that 1 percent. It’s our intention to exercise that.
With Akerson’s announcement, the mystery of GM’s “golden share” sale deepened. At first the question was simply “why would GM sell its 1%?” but now there’s another mystery: why would GM want it back? After some digging, it seems that we are now able to resolve the first mystery, and report why GM sold its one percent. But the whole deal is still surrounded by several layers of mystery which conceal whether GM will in fact be able to regain its 50-50 partnership in SGM, why it would want to and whether its gambit was ultimately worthwhile. And given how important China has been (and continues to be) to GM’s global business, this is definitely an issue that GM- and industry-watchers will want to better understand.
GM is pushing its Chevrolet brand as a ”world brand,” reports the Freep. First battlefields for global bowtiefication: Europe and Korea. In Korea, the matter is easy: Last month, they took off the Daewoo badge and put a bowtie on instead. As predicted by TTAC nearly a year ago. There is not much that can go wrong in Korea: Hyundai dominates the market, Dawoo’s and now Chevrolet’s market share treads water in the single digits.
In Europe, any substantial market penetration by Chevrolet is “still a long-term goal,” concedes the Freep. And then, the Detroit paper proceeds to publish completely bogus numbers: (Read More…)
GM doesn’t use [Continuously Variable Transmissions] now. But they could be used on models such as the Chevrolet Spark, Aveo and Cruze in the next three years, said Mike Arcamone, CEO of GM Daewoo Auto & Technology.