Holden informed the Australian federal and state level governments that it will cease car production in Australia by 2017, citing a “perfect storm” of unfavorable exchange rates, high production costs and a small but competitive car market that has seen sales of traditional Australian-made rear-drive sedans and Utes plummet in recent years. An estimated 3000 workers are said to be directly affected by the closure of Holden’s manufacturing facilities.
Tag: general motors
There will be a formal announcement by Dan Akerson later this morning, but now that the U.S. government has divested all of its bailout related shares in General Motors, Detroit radio stations are reporting that Dan Akerson will be stepping down as Chief Executive Officer of GM and be replaced by Mary Barra. Barra, who has been seen as Akerson’s possible replacement since she took over responsibility for global product development, will be the first woman to run a major American automobile company. More information later, after the Akerson press conference.
Though Chevrolet’s recent withdrawal from the European market made a huge dent in General Motors’s plans to turn Chevrolet into a global brand, the exit also ends the overlap issues of Opel and Vauxhall with the bow-tied marque.
As part of its global restructuring that will result in the Chevrolet brand leaving the European market and its Australian production likely stopped, General Motors will probably reduce production in relatively high cost Korea, while making that Asian country its production hub for Australia. Australian media has reported that GM has decided to end production there as early as 2016. With fewer made-in-Korea Chevrolet cars needed for Europe, that capacity could be used to supply Australia. (Read More…)
With what will likely turn out to be a brief decline in utility vehicles at the Ford Motor Company, sales of SUVs and crossovers at the Chrysler Group were stronger in November 2013 than they were at Ford and Lincoln.
How’d they do it? The Dodge Durango’s 36% increase – its lowest year-over-year improvement since May – was basically cancelled out by the Dodge Journey’s 22% slide. But at Jeep, where sales had been down 2% through the first ten months of 2013, the new Cherokee’s long-awaited first full month on the market helped to power a 30% brand-wide jump.
Ally Financial, the bank holding company formerly known as GMAC, is still a major part of the United States federal government investment portfolio in the five years since it was bailed out at the start of the Great Recession. Yet, it may be able to soon divest its ownership in part due to General Motors selling their remaining shares.
Last July GM CEO Dan Akerson confirmed that the automaker’s Cadillac brand was working on a flagship sedan larger than the XTS, to play in the big leagues with the BMW 7 Series, the Mercedes-Benz S Class and the Lexus LS, on sale by 2015. While at the recent Los Angeles auto show media preview, Mark Reuss, president of General Motors North American operations, strongly hinted that the big rear wheel drive platform may first appear as a coupe, not a four door sedan. “That’s the car Cadillac needs,” Reuss told USA Today. “You make a statement with a coupe. You don’t make a statement with a sedan.” (Read More…)
As the U.S. government exits its bailout derived equity stake in General Motors by the end of this year, current investors are hoping the company issues dividends and/or has a stock buyback while potential activist investors eye GM’s hoard of $26.8 billion in cash. Financial analysts expect GM to buy the Series A preferred shares in the company owned by the UAW healthcare benefits trust and the Canadian government and then give cash to shareholders in the form of dividends and buybacks.
“The likely clean-up of the Treasury stake by year end moves capital allocation to the forefront for 2014,” Barclays’ analyst Brian Johnson said. It will also eliminate GM’s current employee compensation cap that was instituted as a condition of the bailout. GM will now be able to pay market rates for talent.
For its part, GM says that it’s $37 in total liquidity will be used to invest in existing operations. (Read More…)
I’ve never cared for the phrase “as American as apple pie” as apple pie is far from an American invention. Instead, we should say as “American as the pickup truck.” In 1925 Ford crafted the “Ford Model T Runabout with Pickup Body” and America’s love affair began. The Chevrolet Silverado, and its mechanical twin the GMC Sierra, may not be the best-selling vehicle in America (that award goes to the aging Ford F-150) but the Chevy alone has outsold the Toyota Camry by 55,000 units this year. Toss in the Sierra and there are more GM trucks sold on our shores in a year than all the Volkswagen, Audi and Porsche products put together. The high sales number and high profit margins explain the intense Ford vs Chevy vs RAM rivalry. With a new RAM in 2013 and a light refresh only a year later, GM is firing back with an all-new Silverado and Sierra. Does Chevy’s new half-ton have what it takes to be king of the hill?
With reports circulating that General Motors CEO Dan Akerson will step down sometime next year, the executive told Automotive News that he wants his successor to be a change agent and a risk taker. ”There’s no prototypical CEO,” Akerson said. “A good leader has to be innately bright, intellectually curious. They have to be a change agent, never satisfied with the status quo.”
Akerson, whom some say brought more accountability to GM’s bureaucracy said, “You have to establish accountability and an orientation to risk, recognizing that we’re not a fault-free company,” he said. “Have the humility and audacity to say ‘I made a mistake,’ and back up and go down the other way.” (Read More…)
Once upon a time, one man rose from the realm of sales to helm Ford’s truck division. With his iron fist, he divided the F-150 range into several specialized units, reaping the rewards as his dominion over the light truck market expanded.
That man is Doug Scott, and this is the tale of how he came to be the Sovereign of Truck Mountain.
Readers of our departed EIC’s chronicles will no doubt understand that building a luxury brand is a gradual, concentrated effort that won’t bear fruit for many years. Over at Audi, it took Herr Schmitt and Herr Piech the better part of two decades to morph Audi from an oddball line of tarted up Volkswagens into a global luxury player, and that journey was not without its own mishaps.
Unless you pay a visit to Mr. Lang’s lot on the right day or really love Volkswagen, the only wagons available for Americans today are mostly Teutonic, and all come with a high price tag. According to GM North American President Mark Reuss, that’s a problem, and one he’d like to fix pronto.