The Truth About Cars » general motors http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Fri, 01 Aug 2014 21:12:49 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » general motors http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com The Future Of GM’s Oshawa Plant Looks Increasingly Bleak http://www.thetruthaboutcars.com/2014/08/future-gms-oshawa-plant-looks-increasingly-bleak/ http://www.thetruthaboutcars.com/2014/08/future-gms-oshawa-plant-looks-increasingly-bleak/#comments Fri, 01 Aug 2014 14:07:23 +0000 http://www.thetruthaboutcars.com/?p=878114 A report in Automotive News outlines how General Motors has committed to building a new Buick model at their plant in Russelsheim, Germany. According to AN, the logical choice is the next-generation Buick Regal, also known as the Opel Insignia, since this is a good fit for Buick, and it allows GM to use up some of the […]

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A report in Automotive News outlines how General Motors has committed to building a new Buick model at their plant in Russelsheim, Germany. According to AN, the logical choice is the next-generation Buick Regal, also known as the Opel Insignia, since this is a good fit for Buick, and it allows GM to use up some of the excess capacity that is currently plaguing their European operations. But for GM’s venerable Oshawa plant, this is not good news.

As TTAC and AN have both pointed out, product is leaving Oshawa much faster than it’s coming in. The Camaro will move to Lansing, Michigan by 2016, while the next-generation Chevrolet Impala and the Cadillac XTS has its production split between Michigan and Oshawa. The old-generation Impala, currently built on the old “Consolidated” line, is due to end production soon. The GM Theta crossovers, which are built partially in Oshawa due to a lack of capacity at GM’s Ingersoll, Ontario plant, will move there exclusively for their next generation. That leaves the Regal as GM’s lone Oshawa product, and even that appears to be going away too.

All signs appear to point to the closure of the Oshawa plant high. Between high labor costs, unfavorable exchange rates and a lack of new products, it would take a miracle to save Oshawa. As of now, the main thing tying GM to the plant is the “vitality commitment” that they signed as part of their bailout agreement with the Canadian government, obligating them to keep a certain amount of vehicle production in Canada. And when that ends in 2016, it’s hard to imagine that GM will keep producing cars in one of the world’s most costly jurisdictions.

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GM Warned Of Rental-Car Crashes As Early As 2005 http://www.thetruthaboutcars.com/2014/08/gm-warned-rental-car-crashes-early-2005/ http://www.thetruthaboutcars.com/2014/08/gm-warned-rental-car-crashes-early-2005/#comments Fri, 01 Aug 2014 12:00:24 +0000 http://www.thetruthaboutcars.com/?p=877866 Several years prior to the February 2014 General Motors ignition switch recall, car rental companies did their best to get the automaker’s attention regarding a series of accidents and fatalities linked to the latter’s low-cost fleet offerings. Bloomberg reports that as early as 2005, companies such as Enterprise, Alamo and Hertz all reported accidents to […]

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Several years prior to the February 2014 General Motors ignition switch recall, car rental companies did their best to get the automaker’s attention regarding a series of accidents and fatalities linked to the latter’s low-cost fleet offerings.

Bloomberg reports that as early as 2005, companies such as Enterprise, Alamo and Hertz all reported accidents to GM involving the Chevrolet Cobalt. Each report noted the failed deployment of the vehicle’s airbags, such as the September 2006 fatal accident involving an Alamo unit, as well as braking and steering issues that led up to the accidents.

Though the companies did their best to get the automaker to do something, GM believed there wasn’t “sufficient information” to link the problems experienced to the accidents reported, as explained to the National Highway Traffic Safety Administration in one of their meetings between 2005 and 2013. The reports are now part of a growing collection of evidence of both parties’ inability to act quickly prior to the February 2014 recall.

In the present, GM has modified its safety-monitoring system to handle questions and concerns from the car rental industry over potential flaws, as well as backing a U.S. Senate bill that would prohibit affected vehicles from being rented or sold without having first been repaired.

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Utilities, Automakers Collaborate On Smart PHEV Charging Platform http://www.thetruthaboutcars.com/2014/08/utilities-automakers-collaborate-smart-phev-charging-platform/ http://www.thetruthaboutcars.com/2014/08/utilities-automakers-collaborate-smart-phev-charging-platform/#comments Fri, 01 Aug 2014 11:00:05 +0000 http://www.thetruthaboutcars.com/?p=877810 A combination of one research institute, eight automakers and 15 utilities are working together to create a smart grid charging platform for PHEVs. Autoblog Green reports General Motors, BMW, Honda, Fiat Chrysler Automobiles, Ford, Mercedes-Benz, Mitsubishi and Toyota, as well as utilities like Con Edison, Manitoba Hydro and the TVA, are working with the Electric […]

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2015 Chevrolet Spark EV

A combination of one research institute, eight automakers and 15 utilities are working together to create a smart grid charging platform for PHEVs.

Autoblog Green reports General Motors, BMW, Honda, Fiat Chrysler Automobiles, Ford, Mercedes-Benz, Mitsubishi and Toyota, as well as utilities like Con Edison, Manitoba Hydro and the TVA, are working with the Electric Power Research Institute to develop a demand charging platform where the PHEV and the utility exchange information that would reduce the former’s charging during peak hours, then boost it back up during off-peak.

In turn, such a system would allow for increased service reliability for all customers “by helping to mitigate the impact of strain on the grid during peak periods and could contribute to curbing greenhouse gas emissions.” Further, utilities would better be able to manage usage without needing to upgrade their infrastructure, with the savings passed on to their customer base.

As for when this project would get off the ground, no timeline was given as of this time.

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GM: Colorado, Canyon Aimed At Small Crossover, Pickup Shoppers http://www.thetruthaboutcars.com/2014/07/gm-colorado-canyon-aimed-at-small-crossover-pickup-shoppers/ http://www.thetruthaboutcars.com/2014/07/gm-colorado-canyon-aimed-at-small-crossover-pickup-shoppers/#comments Wed, 30 Jul 2014 10:00:47 +0000 http://www.thetruthaboutcars.com/?p=874897 General Motors’ upcoming midsize truck twins — the Chevrolet Colorado and GMC Canyon — look to do more than attract those seeking a smaller pickup by also seeking out small crossover consumers. Autoblog reports GM wants to go after crossover shoppers for their new pickups, going as far as to bring a Ford Escape for […]

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General Motors’ upcoming midsize truck twins — the Chevrolet Colorado and GMC Canyon — look to do more than attract those seeking a smaller pickup by also seeking out small crossover consumers.

Autoblog reports GM wants to go after crossover shoppers for their new pickups, going as far as to bring a Ford Escape for a competitive test drive at the automaker’s Milford, Mich. facility during the twins’ media day.

On paper, GM believes the interior quality and exterior styling will be the main draws for those looking at Escapes, CR-Vs and RAV4s. The pickups’ power and utility could also help sway those buyers, along with pricing similar to those on the windows of small crossovers. Mileage, on the other hand, may be less than what said consumers prefer, especially when the aforementioned trio delivers a combined 26 mpg.

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General Motors Bumps Up Next Pickups, Will Feature Aluminum Panels, Downsized Engines http://www.thetruthaboutcars.com/2014/07/general-motors-bumps-up-next-pickups-will-feature-aluminum-panels-downsized-engines/ http://www.thetruthaboutcars.com/2014/07/general-motors-bumps-up-next-pickups-will-feature-aluminum-panels-downsized-engines/#comments Tue, 29 Jul 2014 13:53:51 +0000 http://www.thetruthaboutcars.com/?p=875113 General Motors is advancing the launch of their next-generation pickups by 9 months, with the next-generation trucks due by 2018. Reuters is reporting that the fairly new generation of full-size trucks will undergo a thorough redesign by 2018, with new full-size SUVs arriving in 2019. While a new 8-speed automatic will arrive in GM’s full […]

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General Motors is advancing the launch of their next-generation pickups by 9 months, with the next-generation trucks due by 2018.

Reuters is reporting that the fairly new generation of full-size trucks will undergo a thorough redesign by 2018, with new full-size SUVs arriving in 2019.

While a new 8-speed automatic will arrive in GM’s full size trucks and SUVs for 2015, the next generation is expected to be even more radical. TTAC has previously reported that the next generation trucks will use substantial amounts of aluminum in the body panels, and a new manufacturing process is expected to reduce both cost and complexity.

The new trucks will also reportedly use a 10-speed automatic transmission (jointly developed with Ford) as well as smaller engines that feature fuel injection, turbocharging and stop-start systems. The end result is a major paradigm shift for the truck market. Consumers may still care about payload and tow ratings, but auto makers are pulling out all the stops to make sure that their trucks meet stringent CAFE rules, which kick in around 2017.

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Buick Envision Photos Leaked http://www.thetruthaboutcars.com/2014/07/buick-envision-photos-leaked/ http://www.thetruthaboutcars.com/2014/07/buick-envision-photos-leaked/#comments Mon, 28 Jul 2014 21:27:46 +0000 http://www.thetruthaboutcars.com/?p=874801 The first photos of the Buick Envision have leaked, with prices said to be ranging from $26,000-$32,000 USD. Car News China is reporting that the Envison will be unveiled at the Chengdu Auto Show, with sales starting in Q4 of this year. The Envision is also said to be based on the Delta compact car […]

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The first photos of the Buick Envision have leaked, with prices said to be ranging from $26,000-$32,000 USD.

Car News China is reporting that the Envison will be unveiled at the Chengdu Auto Show, with sales starting in Q4 of this year. The Envision is also said to be based on the Delta compact car platform, rather than the Theta CUV platform that underpins the Chevrolet Terrain and GMC Equinox.

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Latest GM Recall Woes Hurt Q2 Results http://www.thetruthaboutcars.com/2014/07/general-motors-digest-july-25-2014/ http://www.thetruthaboutcars.com/2014/07/general-motors-digest-july-25-2014/#comments Fri, 25 Jul 2014 13:00:24 +0000 http://www.thetruthaboutcars.com/?p=873066 In today’s General Motors digest: The automaker takes it on the chin in its quarterly report; the analysts have their say; GM Korea could allow its workers to build the next Cruze if only they would put down the picket signs; 45 attorney generals are investigating the February 2014 recall; and CEO Mary Barra will […]

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GM Renaissance Center

In today’s General Motors digest: The automaker takes it on the chin in its quarterly report; the analysts have their say; GM Korea could allow its workers to build the next Cruze if only they would put down the picket signs; 45 attorney generals are investigating the February 2014 recall; and CEO Mary Barra will be the keynote speaker for a connected-vehicle forum.

Autoblog reports GM made a net income of $200 million for Q2 2014, in comparison to $1.2 billion during Q2 2013. Speaking of $1.2 billion, that was how much the automaker paid in recall-related repairs this quarter, with a $900 million charge ready for future recall campaigns. Finally, $400 million has been set aside for the Feinberg compensation plan, though $200 million may be added down the road.

Meanwhile, Automotive News collected a number of analyst quotes regarding the poor Q2 2014 showing, including KBB.com’s Jack Nerad proclaiming that while the automaker may be handling recalls better these days, “it is paying for past sins in terms of the bottom line.” Michael Krebs of AutoTrader.com adds that GM “would have had an outstanding quarter” were it not for the ongoing recall parade, and both Brian Johnson of Barclays Capital (but not of AC/DC) and Morningstar’s David Whiston believing brighter days ahead in Europe and outstanding success in China.

Speaking of the Asia-Pacific, GM Korea management informed the employee’s union that if the latter calls off its impending strike over stalled wage negotiations, the next-gen Chevrolet Cruze would be built in its Gunsan facility. The factory — where the Orlando and current-gen Cruze are assembled — is one of four under GM Korea, and boasts a production capacity of 260,000 units per year.

Back at home, The Detroit News reports GM is under investigation by 45 attorney generals over the February 2014 ignition switch recall, as well as auto safety agency Transport Canada. On the federal level, CEO Mary Barra stated she hasn’t met with the prosecutors or the grand jury regarding the U.S. Attorney’s Office and the Securities and Exchange Commission investigations into wire and bankruptcy fraud related to the automaker’s 2009 bankruptcy proceedings.

Finally, Barra will be the keynote speaker at the 21st World Congress on Intelligent Transport Systems in Detroit September 7. The event, focused on connected vehicles, will attract 10,000 guests from 65 countries to share and discuss ideas, challenges and strategies regarding the burgeoning scene. Barra’s keynote will focus on the future of intelligent transportation.

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General Motors Issues Six Recalls For 720,000 Vehicles http://www.thetruthaboutcars.com/2014/07/general-motors-issues-six-recalls-for-720000-vehicles/ http://www.thetruthaboutcars.com/2014/07/general-motors-issues-six-recalls-for-720000-vehicles/#comments Thu, 24 Jul 2014 11:00:59 +0000 http://www.thetruthaboutcars.com/?p=872770 Wednesday, General Motors issued six recalls for a total of around 720,000 vehicles, all assembled within the last five years. Autoblog reports the following have been recalled: 2010 – 12 Chevrolet Equinox/GMC Terrain/Cadillac SRX; 2011 – 12 Chevrolet Camaro, Buick Regal, Buick LaCrosse: Bolt used to secure height adjustor actuator in vehicles with powered seats […]

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2014 Chevrolet SS in Red

Wednesday, General Motors issued six recalls for a total of around 720,000 vehicles, all assembled within the last five years.

Autoblog reports the following have been recalled:

  • 2010 – 12 Chevrolet Equinox/GMC Terrain/Cadillac SRX; 2011 – 12 Chevrolet Camaro, Buick Regal, Buick LaCrosse: Bolt used to secure height adjustor actuator in vehicles with powered seats may loosen on its own, if not fall out, allowing the seat to move freely; 414,333 recalled.
  • 2013 – 14 Cadillac ATS, Buick Encore; 2014 Chevrolet Caprice/SS, Cadillac CTS, Cadillac ELR; 2014 – 15 Chevrolet Silverado/GMC Sierra: Incomplete weld of seat hook bracket assembly, may require track replacement; 124,008 recalled.
  • 2011 – 13 Buick Regal; 2013 Chevrolet Malibu: Single-bulb burnout of turn signal failing to notify driver of issue, reprogramming needed; 120,426 recalled.
  • 2014 Chevrolet Impala: Bad electric ground on power steering module of belt-driven electric steering models — caused by misplaced paint — may lead to sudden loss or reduction of steering power; 57,242 recalled
  • 2014 – 15 Chevrolet Spark: Improperly fastened lower control arm of Korean-built models could lead to separation from the steering knuckle; 1,919 recalled.
  • 2015 Chevrolet Tahoe/GMC Yukon, Chevrolet Suburban/GMC Yukon Denali: Incorrect retaining nut in interior roof rail could puncture or tear roof-mounted airbags upon deployment; 22 recalled.

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Been Dacia’d And Confused For So Long It’s Not True… http://www.thetruthaboutcars.com/2014/07/been-daciad-and-confused-for-so-long-its-not-true/ http://www.thetruthaboutcars.com/2014/07/been-daciad-and-confused-for-so-long-its-not-true/#comments Wed, 23 Jul 2014 14:50:42 +0000 http://www.thetruthaboutcars.com/?p=872090 General Motors took the step of killing off Chevrolet in Europe earlier this year, and has long attempted to position Opel and Vauxhall as mainstream but slightly more premium offerings (analogous to how Volkswagen was once marketed in the United States). And that makes news of a new line of budget cars all the more […]

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General Motors took the step of killing off Chevrolet in Europe earlier this year, and has long attempted to position Opel and Vauxhall as mainstream but slightly more premium offerings (analogous to how Volkswagen was once marketed in the United States). And that makes news of a new line of budget cars all the more confusing.

Just-Auto reports that Opel and Vauxhall will launch two new budget models to attract customers who may have previously opted for Chevrolet cars. First is the new Viva, based on the next-generation Chevrolet Spark. A small SUV, set to rival the Dacia Duster, is also being considered.

Rather than aiming for a brand that specifically targets no-frills motoring, it appears that GM is aiming to emulate Skoda, which at least has some measure of style and chic appeal, even as it positions itself as a value brand. The new Viva looks to be a pretty stylish car, but the brand positioning appears to be contradictory. How can Opel and Vauxhall aspire to sell pseudo-premium sedans like the Insignia while also pushing a new line of budget cars? Then again, nobody can ever accuse GM of having a consistent or coherent brand strategy in Europe.

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Foxx: No Penalties Issued Within NHTSA Over GM Ignition Recall http://www.thetruthaboutcars.com/2014/07/foxx-no-penalties-issued-within-nhtsa-over-gm-ignition-recall/ http://www.thetruthaboutcars.com/2014/07/foxx-no-penalties-issued-within-nhtsa-over-gm-ignition-recall/#comments Tue, 22 Jul 2014 14:00:50 +0000 http://www.thetruthaboutcars.com/?p=871434 Though General Motors gave 15 of its employees the ax over their part of the February 2014 ignition switch recall, U.S. Transportation Secretary Anthony Foxx told those in the National Press Club Monday that no one in the National Highway Traffic Safety Administration was fired or disciplined over their part of the recall and subsequent […]

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Anthony Foxx + Barack Obama et al

Though General Motors gave 15 of its employees the ax over their part of the February 2014 ignition switch recall, U.S. Transportation Secretary Anthony Foxx told those in the National Press Club Monday that no one in the National Highway Traffic Safety Administration was fired or disciplined over their part of the recall and subsequent fallout.

The Detroit News reports that while no one was penalized in the slightest within the agency, Foxx ordered a review on the NHTSA’s handling of the recall and other complaints:

I’ve asked our inspector general to go through and do an after-action on this GM situation to see if there is anything we didn’t do that we should have done. We will learn from that report, and until that time we have our team intact.

Foxx also defended the NHTSA in regards to the possibility of rehiring former employees who are currently working in the auto industry, proclaiming it has “ethical requirements that really guard against” undue influence in favor of the automakers.

Meanwhile, both houses of Congress are planning a second round of hearings with the agency later this year, with the goal to determine why it failed to link a series of complaints over ignition/airbag issues in Chevrolet Cobalts and Saturn Ions to the out-of-spec switch at the heart of the February 2014 recall.

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2015 GM Trucks Get 8-Speed Transmission http://www.thetruthaboutcars.com/2014/07/2015-gm-trucks-get-8-speed-transmission/ http://www.thetruthaboutcars.com/2014/07/2015-gm-trucks-get-8-speed-transmission/#comments Fri, 18 Jul 2014 15:31:25 +0000 http://www.thetruthaboutcars.com/?p=869370 Now that the new GM 8L90 has made its way down to the C7 Corvette, it was only a matter of time before GM put the new transmission in their pickup trucks. Starting in 2015, all of GM’s full-size, body-on-frame pickup trucks and SUVs will get the new 8-speed gearbox. Fuel economy improvements haven’t been […]

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Now that the new GM 8L90 has made its way down to the C7 Corvette, it was only a matter of time before GM put the new transmission in their pickup trucks.

Starting in 2015, all of GM’s full-size, body-on-frame pickup trucks and SUVs will get the new 8-speed gearbox. Fuel economy improvements haven’t been announced, though GM claims that the new transmission will allow for numerically lower final drive ratios, which should have a positive impact on highway fuel economy.

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Barra Defends GM Top Lawyer In Second US Senate Hearing http://www.thetruthaboutcars.com/2014/07/barra-defends-gm-top-lawyer-in-second-us-senate-hearing/ http://www.thetruthaboutcars.com/2014/07/barra-defends-gm-top-lawyer-in-second-us-senate-hearing/#comments Fri, 18 Jul 2014 11:00:35 +0000 http://www.thetruthaboutcars.com/?p=869290 Under fire from the U.S. Senate Commerce Committee for not having fired General Motors’ top counsel Michael Millikin, CEO Mary Barra defended her decision to keep him on the company payroll during Thursday’s hearing over the February 2014 ignition recall crisis. Automotive News reports Barra believed Millikin, who has served as GM’s general counsel since […]

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General Motors CEO Mary Barra Testifies Before Senate Committee About GM's Recalls

Under fire from the U.S. Senate Commerce Committee for not having fired General Motors’ top counsel Michael Millikin, CEO Mary Barra defended her decision to keep him on the company payroll during Thursday’s hearing over the February 2014 ignition recall crisis.

Automotive News reports Barra believed Millikin, who has served as GM’s general counsel since 2009, to be “a man of incredibly high integrity” in spite of a number of his charges failing him and the automaker, five of whom were among the 15 let go from the company last month as a result of the Valukas report.

For his part, Millikin testified that he has enacted a number of changes into how his department functions, including bringing in an outside firm to review the automaker’s litigation practices, as well as bringing to his attention any lawsuits linked to a death and/or injury as a result of GM’s products. Millikin also claimed he was not aware of the issues surrounding the out-of-spec ignition switch until the February 2014 recall was issued.

Other highlights in today’s hearing include the testimony of GM supplier Delphi CEO Rodney O’Neal, proclaiming that said switch, despite being out-of-spec, “met the requirements” put forth by the automaker; Kenneth Feinberg’s testimony, where he explained to the Senate committee how he would help affected consumers find the proof needed to process a claim, as well as stating the list of eligible vehicles under the Feinberg plan was one of the few parts of the plan decided upon by GM; and consumer advocate Ralph Nader calling upon the automaker to bring aboard an independent ombudsman who could serve as a firewall from retribution for employees wanting to blow the whistle on a potential problem, then report the problems to the CEO.

The Senate committee will hold a separate hearing with the National Highway Traffic Safety Administration over their part of the February 2014 GM ignition recall, though no date has been given thus far.

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Strong C7 Corvette Sales Mean More Profits for GM http://www.thetruthaboutcars.com/2014/07/strong-c7-corvette-sales-mean-more-profits-for-gm/ http://www.thetruthaboutcars.com/2014/07/strong-c7-corvette-sales-mean-more-profits-for-gm/#comments Thu, 17 Jul 2014 19:04:14 +0000 http://www.thetruthaboutcars.com/?p=867162 The Chevrolet Corvette may be outselling all of Porsche’s sports car models combined, but GM will still sell fewer Corvettes this year than the number of Chevy Cruzes they are likely to sell this month. You might think that one of General Motors’ lowest volume cars could not contribute much to the company’s bottom line, but the […]

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2015 Corvette Z06. Full gallery here

2015 Corvette Z06. Full gallery here

The Chevrolet Corvette may be outselling all of Porsche’s sports car models combined, but GM will still sell fewer Corvettes this year than the number of Chevy Cruzes they are likely to sell this month. You might think that one of General Motors’ lowest volume cars could not contribute much to the company’s bottom line, but the success of the 7th generation Corvette will mean hundreds of millions of dollars more in profit this year for the automaker.

When the latest Corvette was introduced in early 2013, annual sales had been in the 12,000 to 14,000 unit range since 2009, about a 2/3 drop from sales a decade earlier. I can remember when there were rumors in the 1990s that GM might kill the Corvette because sales had dropped to about 25,000 cars a year so it was somewhat surprising that the ‘Vette survived GM’s bankruptcy with sales at half that level.

At the C7′s introduction in January of 2013, I was talking to Harlan Charles, Corvette majordomo (actually his official title is product and marketing manager for the car) and he surprised me when he said that the program was profitable at the then current build rates. When I expressed skepticism and mentioned the rumored demise of the ‘Vette in the ’90s, Charles said that it wasn’t the 1990s anymore, that efficiencies had been implemented and that the Bowling Green Corvette assembly plant made money making a fraction of the cars it used to make. In 2012, Chevy sold about 14,400 C6 Corvettes in North America. The C7 edition has been well received and Chevy has sold more than twice that number in just the first half of 2014, 18,500. Unless something completely unexpected happens, the Corvette should easily surpass 30,000 sales this year and possibly exceed 35,000.

Mark Reuss, who is GM’s president for North America, has publicly stated that the ‘Vette “makes as much money as any of the top-profit models in our company.” Those pickups can represent five figures of profit on vehicles with higher transaction prices. Adam Levine Weinberg at The Motley Fool website takes Reuss’ comments to mean that gross profit per vehicle (not including development costs) on the C7 Corvette could be $10,000 or more. That means that the 20,000 or so additional Corvettes that GM will sell this year compared to last year works out to an additional $200 million in gross profit.

Now for a company that booked a net profit of $3.8 billion dollars last year, $200 million isn’t a huge amount of money, but it’s  far from chump change. With Chrysler just introducing the 707 horsepower Hellcat edition of the Dodge Challenger, there will be pressure on the Corvette team to respond with a higher performance model than the 650 hp Z06 version of the ‘Vette. While that $200 million may be a fraction of GM’s total profits, it will certainly make it easier for Mr. Charles and his team to convince Marry Barra and her team to greenlight a ZR1 Corvette with even more power than the Hellcat.

Ronnie Schreiber edits Cars In Depth, a realistic perspective on cars & car culture and the original 3D car site. If you found this post worthwhile, you can get a parallax view at Cars In Depth. If the 3D thing freaks you out, don’t worry, all the photo and video players in use at the site have mono options. Thanks for reading – RJS

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Delphi “Not A Target” Of DOJ Investigation http://www.thetruthaboutcars.com/2014/07/delphi-not-a-target-of-doj-investigation/ http://www.thetruthaboutcars.com/2014/07/delphi-not-a-target-of-doj-investigation/#comments Tue, 15 Jul 2014 13:00:42 +0000 http://www.thetruthaboutcars.com/?p=866378 Though under investigation by the Internal Revenue Service over abode issues, Delphi says it is not under investigation by the U.S. Department of Justice over its part of the February 2014 General Motors ignition recall. The Detroit News reports representative Claudia Tapia confirmed a report by Reuters that her employer is “not a target,” but […]

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Delphi HQ Sign

Though under investigation by the Internal Revenue Service over abode issues, Delphi says it is not under investigation by the U.S. Department of Justice over its part of the February 2014 General Motors ignition recall.

The Detroit News reports representative Claudia Tapia confirmed a report by Reuters that her employer is “not a target,” but a witness in the affair. Like GM, the supplier has been subpoenaed by the U.S. Attorney’s Office in Manhattan, the office aided by a federal grand jury. Delphi has also turned over documents to the U.S. House Energy and Commerce Committee as part of the latter’s own inquiry into what went wrong and when regarding the ignition switch linked to 13 fatalities, 54 accidents and 2.6 million recalled vehicles.

Later this week, Delphi CEO Rodney O’Neal will appear with GM CEO Mary Barra before the U.S. Senate Commerce Committee in a second round of hearings; the committee also sent the supplier a detailed questionnaire about its role.

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Feinberg Plan To Be Funded Out-Of-Pocket By GM http://www.thetruthaboutcars.com/2014/07/feinberg-plan-to-be-funded-out-of-pocket-by-gm/ http://www.thetruthaboutcars.com/2014/07/feinberg-plan-to-be-funded-out-of-pocket-by-gm/#comments Thu, 10 Jul 2014 11:00:46 +0000 http://www.thetruthaboutcars.com/?p=862929 Kenneth Feinberg’s victim compensation plan for those severely affected by the ignition switch linked to 13 fatalities, 54 accidents and a recall of 2.6 million vehicles will not be funded by liability insurance, according to General Motors director of financial communications David Roman. Automotive News reports the no-cap fund will be paid “through cash on […]

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Recalled GM ignition switch

Kenneth Feinberg’s victim compensation plan for those severely affected by the ignition switch linked to 13 fatalities, 54 accidents and a recall of 2.6 million vehicles will not be funded by liability insurance, according to General Motors director of financial communications David Roman.

Automotive News reports the no-cap fund will be paid “through cash on hand,” which could amount to at least as much as $1 million per claim. Nir Kossovsky, CEO of Pitsburgh, Penn.-based Steel City Re, states that although this strategy will prove expensive, “it beats the alternative” of litigation as far as restoring reputation is concerned.

However, litigation will be the rule of the day for the automaker. One of the attorneys involved, Jere Beasley of Beasley, Allen, Crow, Methvin, Portis & Miles PC in Montgomery, Ala. says he has been contacted by 300 people alone in June wanting to pursue a lawsuit. He adds that while the compensation plan is mostly sound, Beasley takes issue with Feinberg’s sole authority over how claims will be handled, as well as the heavy burden of proof placed upon the claimants.

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General Motors Digest: July 8, 2014 http://www.thetruthaboutcars.com/2014/07/general-motors-digest-july-8-2014/ http://www.thetruthaboutcars.com/2014/07/general-motors-digest-july-8-2014/#comments Tue, 08 Jul 2014 13:00:22 +0000 http://www.thetruthaboutcars.com/?p=861585 In today’s General Motors Digest: Replacement ignition switches are shipping to dealership service bays in boxes that may not reflect the contents inside; GM hands over 2 million documents to the United States House of Representatives; and certain truck owners are on their own as far as rusty brake lines are concerned. Automotive News reports […]

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OLYMPUS DIGITAL CAMERA

In today’s General Motors Digest: Replacement ignition switches are shipping to dealership service bays in boxes that may not reflect the contents inside; GM hands over 2 million documents to the United States House of Representatives; and certain truck owners are on their own as far as rusty brake lines are concerned.

Automotive News reports in a June 24, 2014 memo by the automaker to its 4,300-strong dealership network, GM would be shipping the ignition switches related to the February 2014 recalls in ACDelco boxes “due to the unprecedented volume of parts being shipped and the resulting shortage of GM Parts boxes.” The memo was composed to allay doubts of authenticity that might arise when the shipments arrive. As of June 25, 2014, 296,462 of the 2.6 million vehicles affected by the recall have been repaired, while GM expects to have the parts ready for the majority of the affected by October.

Over in the Beltway, The Detroit News says the automaker has turned over 2 million pages of records in relation to the February 2014 recall to the U.S. House Energy and Commerce Committee as part of the latter’s ongoing investigation. Rep. Fred Upton of Michigan, who is in the early stages of planning an auto safety overhaul bill, states that he wants to wrap up the investigation prior to making such a bill available for consideration. In an interview with WJR-AM, Upton is considering a national registry to easily track recalled vehicles in the repair stage, as well as when affected vehicles pass into the used car market.

Finally, Bloomberg reports that while General Motors has issued recalls left and right, it has not done so with 1.8 million light trucks and SUVs made between 1999 and 2003 affected by rusting brake lines. Further, the automaker says it’s the owner’s responsibility to prevent rusting and, if need be, replace the lines with a $500 MSRP kit. The defect has hit Salt Belt owners the hardest, where failed brake lines make up 43 out of 100,000 units sold, according to the National Highway Traffic Safety Administration.

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Detroit Three Cutting Summer Breaks Amid High Truck, SUV Sales http://www.thetruthaboutcars.com/2014/07/detroit-three-cutting-summer-breaks-amid-high-truck-suv-sales/ http://www.thetruthaboutcars.com/2014/07/detroit-three-cutting-summer-breaks-amid-high-truck-suv-sales/#comments Tue, 08 Jul 2014 11:00:43 +0000 http://www.thetruthaboutcars.com/?p=861513 Thanks to high consumer demand for SUVs and light trucks, a number of Detroit Three plants are either shortening their summer breaks or eliminating them altogether. Automotive News reports Ford cut its summer break in half at four of its plants in Chicago, Louisville, Ky. and Kansas City, Mo., all four back online this week […]

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The Chrysler Toledo Assembly Complex used to produce Jeep Cherokee in Toledo

Thanks to high consumer demand for SUVs and light trucks, a number of Detroit Three plants are either shortening their summer breaks or eliminating them altogether.

Automotive News reports Ford cut its summer break in half at four of its plants in Chicago, Louisville, Ky. and Kansas City, Mo., all four back online this week to pump out more F-Series Super Dutys, Navigators and Escapes. Its Dearborn, Mich. plant will shut down for the majority of September in preparation for the upcoming aluminum F-150.

Over at Auburn Hills, Fiat Chrysler Automobiles is foregoing summer break at both its Jefferson North and Sterling Heights plants, where the Jeep Grand Cherokee boasted its highest-selling May in 2014, 14 years after its previous best. Overall May 2014 sales for the Italo-American automaker charged up 17 percent, followed by a 9 percent increase last month, all on the back of the Grand Cherokee, Dodge Durango and Chrysler 200.

Finally, General Motors will keep a third of its factories online this month. Though the beleaguered manufacturer kept its list of open factories close to its chest, the publication found four who had not reported any summer shutdowns in Arlington, Texas; Flint, Mich.; and Bowling Green, Ky.

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Reuters: GM Ignition Woes Came As Early As 1997 http://www.thetruthaboutcars.com/2014/07/reuters-gm-ignition-woes-came-as-early-as-1997/ http://www.thetruthaboutcars.com/2014/07/reuters-gm-ignition-woes-came-as-early-as-1997/#comments Fri, 04 Jul 2014 12:00:29 +0000 http://www.thetruthaboutcars.com/?p=858601 It may have taken nearly 14 years for one ignition switch issue to finally find attention, but General Motors’ ignition woes go as far back as 1997, when Chevrolet Malibu owners had their own switch problems. Reuters reports one of the earliest complaints filed with the National Highway Traffic Safety Administration was in April of […]

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GM RenCen Downtown Detroit

It may have taken nearly 14 years for one ignition switch issue to finally find attention, but General Motors’ ignition woes go as far back as 1997, when Chevrolet Malibu owners had their own switch problems.

Reuters reports one of the earliest complaints filed with the National Highway Traffic Safety Administration was in April of that year, when a New Jersey woman said she had been stuck on the road seven times with her new Malibu due to the switch’s inability to turn and the key stuck in place. The defective part was replaced twice, but to no avail. Other complaints include the key being easily removable while the power was still on, and power suddenly cutting out.

By 2001, when the 2000 Chevrolet Impala experienced its own ignition issues similar to those in the Malibu and, further on, the Cobalt and Saturn Ion, GM sent a pair of service bulletins to its dealership network, offering potential solutions to remedy the problems in both vehicles. However, no recall would be issued until Monday’s order of 8.4 million vehicles.

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General Motors Digest: July 3, 2014 http://www.thetruthaboutcars.com/2014/07/general-motors-digest-july-3-2014/ http://www.thetruthaboutcars.com/2014/07/general-motors-digest-july-3-2014/#comments Thu, 03 Jul 2014 13:00:31 +0000 http://www.thetruthaboutcars.com/?p=858049 In today’s General Motors digest: GM recalls a recall; the automaker gains market share in spite of itself; its bankruptcy judge believes it may have committed fraud; the U.S. Senate gets ready for a second February 2014 recall hearing; and Anthony Foxx vows to keep the heat turned up on GM. Detroit Free Press reports […]

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General Motors headquarters in Detroit, Michigan

In today’s General Motors digest: GM recalls a recall; the automaker gains market share in spite of itself; its bankruptcy judge believes it may have committed fraud; the U.S. Senate gets ready for a second February 2014 recall hearing; and Anthony Foxx vows to keep the heat turned up on GM.

Detroit Free Press reports the automaker’s recall of the 2013 – 2014 Cadillac CTS over an ignition switch issue similar to the one affecting the 2010 – 2014 Chevrolet Camaro, as well as the issue that kicked off GM’s recall parade back in February, only affected 264 coupes and wagons assembled before the redesigned sedan left the factory floor; the sedan was incorrectly listed among the 8.4 million vehicles recalled worldwide Monday.

In spite of said recall parade, Automotive News says GM gained market shared in the first six months of 2014, jumping from 16.9 percent in January to 18.8 percent in June. Further, June 2014 sales climbed 1.2 percent to 1.42 million units — instead of falling 2.6 percent as some analysts had predicted — fueled by new models entering the showroom and more lease deals. In turn, the annualized selling rate rose to 16.98 million, the highest rate seen since July 2006, and one higher than 2013′s 15.9 million in the same period. GM hopes to keep up the pace by offering Cobalt owners and owners of other recalled vehicles a $500 incentive to trade-in for a certified used vehicle, and employee pricing on new models; so far, 21 percent of Cobalt owners have taken the automaker up on its offer between March and May 2014.

Meanwhile, Bloomberg reports U.S. Bankruptcy Judge Robert Gerber, who presided over the automaker’s bankruptcy proceedings in 2009, may have to haul GM back in on fraud charges if evidence is found, pointing to then-CEO Fritz Henderson’s possible knowledge — and obfuscation — of the ignition switch problem. Should the evidence be there, Judge Gerber could force the automaker to pay billions of dollars to any of the plaintiffs in the 90-plus lawsuits now waiting for his approval to proceed, which could come as soon as September 15.

Over in the Beltway, Reuters says a consumer protection and product safety subcommittee of the U.S. Senate Commerce Committee will hold a second hearing on the February 2014 recall July 17, though no announcement has been made as to who will be invited to testify as of this writing.

Finally, The Detroit News reports U.S. Transportation Secretary Anthony Foxx and the National Highway Traffic Safety Administration both vow to “keep putting the screws on [GM's safety efforts] until it gets right.” The agency, who is monitoring the automaker for the next three years as part of the latter’s settlement with the federal government, will look into the newest recalls to determine if GM issued them in a timely manner, though Foxx thinks the automaker is acting in good faith.

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Is GM’s Recall Mania More Corporate Blundering or a Strategic Move? http://www.thetruthaboutcars.com/2014/07/is-gms-recall-mania-more-corporate-blundering-or-a-strategic-move/ http://www.thetruthaboutcars.com/2014/07/is-gms-recall-mania-more-corporate-blundering-or-a-strategic-move/#comments Wed, 02 Jul 2014 21:13:19 +0000 http://www.thetruthaboutcars.com/?p=857553 Megan McArdle, over at Bloomberg View, wonders out loud if the flood of recalls issued by General Motors, covering every car they’ve sold for the past three years and a wide swatch of the vehicles the company has made and sold over the past decade and a half is a deliberate strategy on the part […]

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IonIgnitionSwitchRecall-page-001

Megan McArdle, over at Bloomberg View, wonders out loud if the flood of recalls issued by General Motors, covering every car they’ve sold for the past three years and a wide swatch of the vehicles the company has made and sold over the past decade and a half is a deliberate strategy on the part of the company to protect its  image with consumers from further harm. The strategy may be working. The sales reports for June show that the current sales of new GM vehicles seems to be unaffected by all of the publicity and controversy surrounding defective ignition switches that can shut off the car, rendering the airbag systems inoperable in case of a subsequent collision.

Some may see, in the recalls, just more of the same poor quality that many consumers associate, correctly or otherwise, with the domestic automakers, particularly GM. McArdle is not so sure that is how the massive recalls will ultimately play with the broad market:

I wonder if something else isn’t going on, something smarter. I wonder if GM hasn’t decided to go hog wild on the recalls because at this point they have nothing to lose.

There’s a point in a bad scandal where things have gotten about as bad as they could possibly get. New revelations don’t make things worse, because they hardly could be any worse. Instead, they get lost in the deafening noise of prior bad news.

At that point, it’s a good idea to announce anything that you’ve been worrying about might one day come out. People won’t really notice now, and by the time they’ve recovered sufficiently to take an interest, your worrisome story is old news.

What sayest the Best & Brightest on the matter? Blunder or brilliant?

Ronnie Schreiber edits Cars In Depth, a realistic perspective on cars & car culture and the original 3D car site. If you found this post worthwhile, you can get a parallax view at Cars In Depth. If the 3D thing freaks you out, don’t worry, all the photo and video players in use at the site have mono options. Thanks for reading – RJS

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Feinberg Plan Unveiled, Endures Criticism From Attorneys http://www.thetruthaboutcars.com/2014/07/feinberg-plan-unveiled-endures-criticism-from-attorneys/ http://www.thetruthaboutcars.com/2014/07/feinberg-plan-unveiled-endures-criticism-from-attorneys/#comments Tue, 01 Jul 2014 13:00:23 +0000 http://www.thetruthaboutcars.com/?p=856729 Victim compensation expert Kenneth Feinberg, hired by General Motors to develop a program to pay those harmed or killed by the ignition switch at the center of the February 2014 recall and subsequent fallout, unveiled his compensation plan Monday. However, the plan found a few critics over its lack of punitive damage claims, and the […]

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Kenneth Feinberg

Victim compensation expert Kenneth Feinberg, hired by General Motors to develop a program to pay those harmed or killed by the ignition switch at the center of the February 2014 recall and subsequent fallout, unveiled his compensation plan Monday. However, the plan found a few critics over its lack of punitive damage claims, and the fact all payments would be made under Feinberg’s discretion.

Automotive News reports the plan will have no cap on payments, and will accept claims from anyone involved in an GM-related accident where the airbag failed to deploy as a result of a loss of power, including other drivers, passengers and bystanders, and even if other factors — alcohol, no seat belts et al — were involved. Further, those who had settled with the automaker previously can toss aside the settlement paperwork and file a claim, though all who do will forfeit their right to sue the automaker afterwards.

Claimants will need to file “various examples of circumstantial evidence” that the ignition switch was the main cause of any accident, with payment based on death, catastrophic injury, and/or less serious injury/outpatient treatment. Claims will be accepted between August 1 and December 31, 2014, and more information can be found via the program’s website.

Meanwhile, The Detroit News reports attorney Jere L. Beasley of Beasley, Allen, Crow, Methvin, Portis & Miles in Montgomery, Ala. says the plan is lacking in punitive damages, proclaiming it unfair for GM “to escape wrongful conduct” in its part of the ignition switch crisis. He also wants a judge to oversee the payments, and believes the plan places too much of a burden on those affected to prove they were harmed by the automaker’s misconduct. Beasley, fellow attorney Lance Cooper, and Texas lawyer Robert Hilliard are all working with their clients to determine whether to pursuit a claim or continue forward with their lawsuits.

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General Motors Recalls 8.4 Million Vehicles http://www.thetruthaboutcars.com/2014/06/general-motors-recalls-8-4-million-vehicles/ http://www.thetruthaboutcars.com/2014/06/general-motors-recalls-8-4-million-vehicles/#comments Mon, 30 Jun 2014 22:05:04 +0000 http://www.thetruthaboutcars.com/?p=856065 General Motors has issued a total of six recalls affecting some 8.4 million vehicles in North America, the majority of which have ignition-related issues. Autoblog reports the following group totals 7,610,862 — 6,805,679 in the United States — and are being recalled for unintended key rotation: 1997-2005 Chevrolet Malibu 1998-2002 Oldsmobile Intrigue 1999-2004 Oldsmobile Alero […]

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GM RenCen Storm Clouds

General Motors has issued a total of six recalls affecting some 8.4 million vehicles in North America, the majority of which have ignition-related issues.

Autoblog reports the following group totals 7,610,862 — 6,805,679 in the United States — and are being recalled for unintended key rotation:

  • 1997-2005 Chevrolet Malibu
  • 1998-2002 Oldsmobile Intrigue
  • 1999-2004 Oldsmobile Alero
  • 1999-2005 Pontiac Grand Am
  • 2000-2005 Chevrolet Impala
  • 2000-2005 Chevrolet Monte Carlo
  • 2004-2008 Pontiac Grand Prix

The second group totals 616,179 — 554,328 in the U.S. — and are being recalled for unintended key rotation due to bumping of key fob:

  • 2004-2006 Cadillac SRX
  • 2013-2014 Cadillac CTS

The third group totals 20,134 — 2,990 in the U.S. — and are being recalled for potential damage to the engine block heater power cord’s insulation under extreme cold conditions:

  • 2011-2014 Chevrolet Cruze
  • 2012-2014 Chevrolet Sonic
  • 2013-2014 Chevrolet Trax
  • 2013-2014 Buick Encore
  • 2013-2014 Buick Verano

The fourth group totals 117 — 104 in the U.S. — and are being recalled over the Superjoint fastner not being torqued to spec prior to leaving the assembly line:

  • 2014 Chevrolet Camaro
  • 2014 Chevrolet Impala
  • 2014 Buick Regal
  • 2014 Cadillac XTS

The fifth group totals 12,002 — 9,731 in the U.S. — and are being recalled due to the underhood fuseable link potentially melting through electrical overloading, leading to smoke and fire damage to other electric wiring components:

  • 2007-2011 Chevrolet Silverado HD (with auxiliary battery)
  • 2007-2011 GMC Sierra HD (with auxiliary battery)

The sixth and final group totals 188,705 — 181,984 in the U.S. — and are being recalled over the potential for an electrical short to the driver’s door module disabling the power lock and window switches, as well as overheating the module itself:

  • 2005-2007 Buick Rainier
  • 2005-2007 Chevrolet TrailBlazer
  • 2005-2007 GMC Envoy
  • 2005-2007 Isuzu Ascender
  • 2005-2007 Saab 9-7X
  • 2006 Chevrolet TrailBlazer EXT
  • 2006 GMC Envoy XL

In the press release issued by the automaker, CEO Mary Barra said her company undertook what she believed “is the most comprehensive safety review in the history of [GM] because nothing is more important than the safety of [GM's] customers.” She added later on that if any other issues come to the automaker’s attention, GM would “act appropriately and without hesitation” to recall and repair those vehicles. The automaker has recalled a total of 28 million vehicles since January of this year.

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General Motors Digest: June 30, 2014 http://www.thetruthaboutcars.com/2014/06/general-motors-digest-june-30-2014/ http://www.thetruthaboutcars.com/2014/06/general-motors-digest-june-30-2014/#comments Mon, 30 Jun 2014 13:00:14 +0000 http://www.thetruthaboutcars.com/?p=855849 In today’s General Motors digest: GM recalls over 700,000 units globally; Siemens VDO Automotive urged the automaker to look into airbag data in 2004; product chief Doug Parks was aware of the ignition problems in 2005; Feinberg compensation plan will have no payment cap; and Delphi is under the gun from both Congress and the […]

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GM Renaissance Center

In today’s General Motors digest: GM recalls over 700,000 units globally; Siemens VDO Automotive urged the automaker to look into airbag data in 2004; product chief Doug Parks was aware of the ignition problems in 2005; Feinberg compensation plan will have no payment cap; and Delphi is under the gun from both Congress and the IRS.

Autoblog and The Detroit News report the following vehicles are under recall:

  • 2013 – 2014 Chevrolet Cruze: Takata airbag inflator defect; 29,019 (U.S.), 4,066 (Canada)
  • 2014 – 2015 Chevrolet Silverado/GMC Sierra; 2015 Chevrolet Tahoe, Surburban/GMC Yukon, Yukon XL: Transfer case electronically switching to neutral without driver input; 392,459 (U.S.), 53,607 (Canada), 20,874 (Other Markets)
  • 2013 – 2014 Chevrolet Caprice, SS: Potential for windshield wiper motor gear teeth to become stripped; 4,794 (U.S.)
  • 2014 Chevrolet Corvette: Insufficient welding in rear shocks of FE1, FE3 suspension-equipped vehicles; 1,939 (U.S.), 33 (Canada), 82 (Other Markets)
  • 2009 – 2012 Buick Excelle GT: Potential for high-beams to remain on under extreme circumstances; 194,107 (China)

Automotive News says in 2004, Siemens VDO Automotive engineer Douglas McConnell wrote a report urging GM to look into a possible link between airbag sensors and the loss of power via the ignition cycle. The GM-commissioned report was penned a month before the first Chevrolet Cobalts left the assembly line, and shown to five engineers working for the automaker at the time, including Matthew Craig, who currently works for the National Highway Traffic Safety Administration as its chief of human injury research. Declining to elaborate on the report, representative Greg Martin stated “there were several missed opportunities for GM to properly identify the problem,” citing the Valukas report to back his statement.

Meanwhile, Bloomberg reports that Doug Parks, appointed to the post of vice president of global product programs by CEO Mary Barra, was a vehicle chief engineer for the Chevrolet Cobalt program in 2005. In that role, he was a part of the cost debate over whether or not to redesign the ignition switch that would be put into the compact, stating in a May 2005 email that changing the design “appears to be the only real, quick solution.” Parks had been invited to attend two meetings in the first half of 2005 over the issue, though nothing could be determined as far as attendance was concerned.

In the present, Kenneth Feinberg’s compensation program for those injured or killed as a result of the ignition switch will pay claims to all drivers, passengers and bystanders involved in an accident with an affected GM vehicle. Further, claimants will have few hurdles to go through in being paid, including alcohol use and lack of physical evidence. Finally, the program will have no cap on the amount of money paid in total, though no word has been given by Feinberg and his time about how much will be paid per victim and their families. Claims will be accepted beginning August 1.

Finally, Automotive News reports Delphi, already under investigation by the U.S. House Energy and Commerce Committee over its part of the February 2014 ignition switch recall, is now under the gun from the Internal Revenue Service over whether or not the supplier can be taxed as a domestic corporation. Upon emerging from bankruptcy in 2009, Delphi set up its tax base in the United Kingdom, though it retained its headquarters and executive team in Troy, Mich. Should the supplier lose its appeal with the IRS, its tax rate could rise to 22 percent effective rate, up from the 17 percent Delphi pays currently. In 2013, it paid $256 million in taxes; under the new rate, an additional $75 million would need to be paid, bringing the total to approximately $331.3 million.

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General Motors Digest: June 27, 2014 http://www.thetruthaboutcars.com/2014/06/general-motors-digest-june-27-2014/ http://www.thetruthaboutcars.com/2014/06/general-motors-digest-june-27-2014/#comments Fri, 27 Jun 2014 13:00:34 +0000 http://www.thetruthaboutcars.com/?p=854625 In today’s General Motors digest: The automaker rescinds its stop-sale of 33,000 Chevrolet Cruzes over Takata air bag issues, recalls 29,019; Delphi turns over documents to a federal grand jury; Kenneth Feinberg’s compensation plan will be revealed Monday; and CEO Mary Barra says more recalls may be coming, but no more people will be fired […]

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Mary Barra at 2014 Detroit Auto Show

In today’s General Motors digest: The automaker rescinds its stop-sale of 33,000 Chevrolet Cruzes over Takata air bag issues, recalls 29,019; Delphi turns over documents to a federal grand jury; Kenneth Feinberg’s compensation plan will be revealed Monday; and CEO Mary Barra says more recalls may be coming, but no more people will be fired as a result of the Valukas report.

Automotive News reports GM lifted its stop-sale order of 33,000 2013 – 2014 Chevrolet Cruzes due to a defective airbag inflator found in units provided by supplier Takata once the automaker accounted for all the affected vehicles by comparing VINs to the parts list. Detroit Free Press adds GM then recalled the affected units, totaling 29,019, all of them still under its new vehicle warranty. The defect, if not treated, could result in the inflator — and the airbag unit overall — catastrophically exploding or non-deployment of the airbag in an accident.

Speaking of suppliers, The Detroit News says Delphi delivered hundreds of documents related to its part of the February 2014 ignition switch recall to the U.S. Justice Department via grand jury subpoena. The supplier also sought confidential treatment in turning over the requested documents. Meanwhile, the U.S. House Energy and Commerce Committee made public 80 emails and other documents by the automaker and the supplier illustrating GM’s struggles with the ignition switch, painting “a disturbing and devastating picture, a beyond-worst-case systemic breakdown that led to lives needlessly lost,” according to U.S. Representatives Tim Murphy of Pennsylvania and Fred Upton of Michigan.

Automotive News reports Kenneth Feinberg, the victim-compensation expert hired by GM to compensate victims of the defective ignition switch, will announce his plan Monday at 10 a.m. in Washington, D.C. Though no dollar amount will likely be pegged in the announcement, the terms of the plan could sway victims into accepting compensation over filing a lawsuit against GM. The automaker did not provide its own estimate, as well.

Finally, Reuters reports CEO Mary Barra said during an interview with Matt Lauer on NBC’s “The Today Show” that more recalls could come down the pike, based on data received. She also commented on the Feinberg plan, stating her company wants “every single person who either lost a loved one or has a serious physical injury to be a part of that program.” Detroit Free Press adds that when Lauer asked if there would be more firings linked to the ignition switch, Barra proclaimed everyone who would be let go has been let go. She emphasized that the “silos of information” that obfuscated the issue were being torn down, with employees taking notes during safety meetings that are then presented to her for review.

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Cadillac Won’t Give Up On The Dream Of European Success http://www.thetruthaboutcars.com/2014/06/cadillac-wont-give-up-on-the-dream-of-european-success/ http://www.thetruthaboutcars.com/2014/06/cadillac-wont-give-up-on-the-dream-of-european-success/#comments Fri, 27 Jun 2014 11:00:08 +0000 http://www.thetruthaboutcars.com/?p=853321 Despite a flimsy dealer network, a lack of diesel engines and a poisonous brand, GM still hasn’t given up on the idea of making Cadillac a global luxury brand that can sell cars in Europe. Speaking to AutoExpress, GM President Dan Amman expressed his desire to sell Cadillacs in Europe, despite its past failures. Amman […]

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Despite a flimsy dealer network, a lack of diesel engines and a poisonous brand, GM still hasn’t given up on the idea of making Cadillac a global luxury brand that can sell cars in Europe.

Speaking to AutoExpress, GM President Dan Amman expressed his desire to sell Cadillacs in Europe, despite its past failures. Amman also tacitly admitted that Cadillac would never be able to become a high volume brand or take on the German luxury brands – despite the fact that Cadillac has nakedly chased them in their home market of America

“But in the long term there is a role for Cadillac in Europe. Is it going to be a high-volume contender in the medium to long term future? Probably not. But is there a role for something other than the three German luxury brands? I think there is…We’ve got to figure out what it is, what our portfolio is, a different value proposition. But trying to out-German the Germans will not be the path to success. We have to have a different proposition.”

With a skeletal dealer network, unsuitable product for European tastes and road conditions (no diesel options is a complete non-starter) and an undesirable brand, it’s worth asking, why even bother?  Cadillac sold just 430 cars in Europe in 2012, with sales peaking at 3,000 cars in 2007. The brand has 40 dealers on the entire continent, and with diesels accounting for a reported 80 percent of premium car sales, this looks like nothing more than a vanity project, with GM wanting to sell Cadillacs in Europe just to bring the fight to the Germans on home turf – similar to VW’s folly in going after premium cars with the Phaeton, because Daimler dared to launch the compact Mercedes A-Class. And we know how that turned out.

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