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, 24 Oct 2014 17:28:55 +0000 en-US hourly 1 http://wordpress.org/?v=4.0 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 Nissan, Honda Recall More Takata-Equipped Vehicles http://www.thetruthaboutcars.com/2014/10/nissan-honda-recall-takata-equipped-vehicles/ http://www.thetruthaboutcars.com/2014/10/nissan-honda-recall-takata-equipped-vehicles/#comments Fri, 24 Oct 2014 14:00:55 +0000 http://www.thetruthaboutcars.com/?p=935674 The Takata airbag recall continues to grow, with Nissan adding 260,000 2008 through 2012 models worldwide to the list. Automotive News reports the recall total for Nissan linked to the airbags since 2013 totalled nearly 700,000 prior to the additional vehicles called back. The recall affects vehicles outside of the United States, including the Cube […]

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2014 Nissan Versa Note Exterior

The Takata airbag recall continues to grow, with Nissan adding 260,000 2008 through 2012 models worldwide to the list.

Automotive News reports the recall total for Nissan linked to the airbags since 2013 totalled nearly 700,000 prior to the additional vehicles called back. The recall affects vehicles outside of the United States, including the Cube and Micra/March, with the majority of the models located in the automaker’s home market of Japan.

Meanwhile, Honda is replacing the defective units in 3.5 million vehicles in 11 states in the U.S. where high humidity could lead to an airbag exploding with metal shrapnel taking dead aim at all inside. The company also recalled 425,825 units, adding onto the 6 million that have been recalled over the issue since 2008.

Finally, General Motors and Toyota are issuing warnings to their customers not have anyone sit in the front passenger seat until the airbag unit is replaced.

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Tesla Direct Sales Ban Reinforced In Michigan, GM Supported Signing http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/ http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/#comments Wed, 22 Oct 2014 10:00:19 +0000 http://www.thetruthaboutcars.com/?p=934698 It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced. Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a […]

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2013 Tesla Model S Summerside Lighthouse

It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced.

Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a law already on the books:

This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan — because this is already prohibited under Michigan law.

Though Tesla can do little more than open a showroom and a repair shop for now, Snyder said lawmakers should “always be willing to re-examine” legislation with the aim of improving the consumer’s experience “in a more efficient and less costly manner.”

Meanwhile, at least one automaker is happy PA 354 is on the books. In a one-sentence press release, General Motors had this to say prior to the bill’s signing:

We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it.

Per Jalopnik, GM sent a similar message to Ohio governor John Kasich back in March of this year regarding SB137, which would have allowed Tesla to directly sell to customers in the state; the bill later died in the Ohio Senate.

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September 2014 Sales: Now Even The SRX Is Slowing Cadillac Down http://www.thetruthaboutcars.com/2014/10/september-2014-sales-now-even-srx-slowing-cadillac/ http://www.thetruthaboutcars.com/2014/10/september-2014-sales-now-even-srx-slowing-cadillac/#comments Tue, 21 Oct 2014 12:39:17 +0000 http://www.thetruthaboutcars.com/?p=932522 Cadillac sales in the United States rose to a six-year high in 2013. Yet in five of 2014’s nine months, sales have declined. Through three-quarters, Cadillac volume is down 4%. Overall new vehicle sales in the U.S. are up by more than 5%. BMW, Mercedes-Benz, and Lexus sales are up 11%, 8%, and 16%, respectively, […]

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2015 Cadillac SRXCadillac sales in the United States rose to a six-year high in 2013. Yet in five of 2014’s nine months, sales have declined. Through three-quarters, Cadillac volume is down 4%. Overall new vehicle sales in the U.S. are up by more than 5%.

BMW, Mercedes-Benz, and Lexus sales are up 11%, 8%, and 16%, respectively, in 2014. Audi, up 14%, is routinely outselling Cadillac.

The SRX was a bright spot for Cadillac in the first half of this year, not only because it’s the brand’s best-selling model but because sales had jumped 20% compared with the first half of 2013. After six consecutive monthly increases, however, SRX sales in July slid 7%. August volume fell 37%. September sales dropped 15%.

Total third-quarter SRX sales were down 22%, a loss of nearly 3700 sales.

Meanwhile, September sales of Cadillac cars slid 14%. The new Escalade and Escalade ESV were saviors, rising 120% to 3518 units, 25% of Cadillac’s total September volume. As a result, overall Cadillac volume increased in September. By a single unit.

Had SRX volume not been so stable over the previous four and a half years, this 2014 Q3 result wouldn’t be surprising at all. Between 2010 and 2013, Cadillac averaged 55,565 SRX sales per year in the U.S, never falling below 51,000 units, never rising above 58,000. Year-to-date sales in 2014 are actually up 3%.

But the SRX is no longer the freshest chicken in the fridge. Supply has been increasing: Cadillac dealers had 97 days of inventory at the beginning of October, up from 82 in September and 68 at the beginning of July.

And yet the SRX is still one of America’s favourite premium brand utility vehicles, slotting in behind the Lexus RX, Acura MDX, and BMW X5 in September; the RX and MDX on year-to-date terms.

If Cadillac’s car issues weren’t so troubling – ATS volume is down 20% this year, the CTS is off by 6%, and the XTS by 22% – this recent SRX decline wouldn’t merit more than a paragraph. Instead, because their car sales are so low, Cadillac needs something other than the Escalade to sell well.

Based on a brief but sudden downturn, the second-generation SRX appears as though it is perhaps not consistently capable of being that vehicle, not five years into its term.

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GM General Counsel Retiring Early 2015 http://www.thetruthaboutcars.com/2014/10/gm-general-counsel-retiring-early-2015/ http://www.thetruthaboutcars.com/2014/10/gm-general-counsel-retiring-early-2015/#comments Mon, 20 Oct 2014 10:00:33 +0000 http://www.thetruthaboutcars.com/?p=933690 Come next year, General Motors will have a new general counsel, as Michael Millikin has decided to call it a day. Millikin had come under fire as recently as this summer, when Congress took CEO Mary Barra to task for not firing him for his part of the February 2014 ignition switch recall, especially when […]

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GM Senior Vice President and General Counsel Michael P. Millikin

Come next year, General Motors will have a new general counsel, as Michael Millikin has decided to call it a day.

Millikin had come under fire as recently as this summer, when Congress took CEO Mary Barra to task for not firing him for his part of the February 2014 ignition switch recall, especially when five company lawyers under him were given the axe — a result of the publication of the Valukas report — but not he. Barra had this to say about him:

Mike has had a tremendous career, spanning more than 40 years, with the vast majority of it at GM. He has led global legal teams through incredibly complex transactions, been a trusted and respected confidant to senior management, and even led the company’s global business response team following the tragedy of 9/11.

Millikin served as GM’s general counsel since 2009, and has been with the automaker since 1977, when he was brought in from his previous role as an assistant attorney in the U.S. District Attorney’s Office in Detroit. He will remain in his position until the transition period for the new GC is complete.

GM has already begun an external search for his replacement.

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Automakers, Utilities Collaborate On Plug-In Cloud Charging Technology http://www.thetruthaboutcars.com/2014/10/automakers-utilities-collaborate-plug-cloud-charging-technology/ http://www.thetruthaboutcars.com/2014/10/automakers-utilities-collaborate-plug-cloud-charging-technology/#comments Fri, 17 Oct 2014 14:00:49 +0000 http://www.thetruthaboutcars.com/?p=932394 A group of eight automakers are collaborating with 15 utility companies in the United States to give PHEVs and EVs the ability to communicate with the latter party and the grid through cloud computing. Edmunds reports the group of eight — BMW, Ford, General Motors, Fiat Chrysler Automobiles, Honda, Mercedes-Benz, Toyota and Mitsubishi — along […]

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Ford Focus EV Cloud Charging

A group of eight automakers are collaborating with 15 utility companies in the United States to give PHEVs and EVs the ability to communicate with the latter party and the grid through cloud computing.

Edmunds reports the group of eight — BMW, Ford, General Motors, Fiat Chrysler Automobiles, Honda, Mercedes-Benz, Toyota and Mitsubishi — along with the 15 companies, Sumitomo Electric Industries and the Electric Power Research Institute, are developing a platform that would use the cloud to better manage energy usage and grid efficiency “while still meeting the needs” of PHEV and EV owners. The platform is called the Open Vehicle-Grid Integration Platform.

OVGI would operate as follows: an owner would plug their car in as usual, then set a time for when the vehicle would be back on the road. The utility company could then send a message to the car to stop charging during peak power use, or, if doing so would hinder the vehicle’s ability to get back on the road, allow the vehicle to continue charging until it was ready to go.

In turn, the companies could offer their customers incentives to offer their plug-ins to the grid through lower rates on electricity usage. Customers can opt-out, charge elsewhere, or have the vehicle ignore the request.

The first OVGI test is occurring this week at Sacramento Municipal Utility District’s Customer Service Center, where the tech will be demonstrated before federal, state, automotive and utility representatives and officials.

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GM Slapped With Lawsuits Totalling $10B Over Lost Value Claims http://www.thetruthaboutcars.com/2014/10/gm-slapped-lawsuits-totalling-10b-lost-value-claims/ http://www.thetruthaboutcars.com/2014/10/gm-slapped-lawsuits-totalling-10b-lost-value-claims/#comments Thu, 16 Oct 2014 13:00:37 +0000 http://www.thetruthaboutcars.com/?p=932002 General Motors twice experienced the business end of a leather glove Wednesday, when over 20 million consumers demanded satisfaction via two lawsuits totalling $10 billion in claims over lost resale value as a result of the February 2014 ignition switch recall. Bloomberg reports two class actions would come GM’s way, the larger representing those who […]

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2009 Chevrolet Cobalt Kia Store

General Motors twice experienced the business end of a leather glove Wednesday, when over 20 million consumers demanded satisfaction via two lawsuits totalling $10 billion in claims over lost resale value as a result of the February 2014 ignition switch recall.

Bloomberg reports two class actions would come GM’s way, the larger representing those who bought a GM vehicle between July 2009 and July 2014, whether or not they were still in possession of said vehicle.

The smaller lawsuit, meanwhile represents those who bought vehicles prior to the automaker’s bankruptcy in July 2009, though it may be muted depending on how a bankruptcy judge in New York rules next year regarding whether or not claims for accidents and economic losses made before the bankruptcy would be allowed to move forward.

According to the filing for the larger suit, “New GM’s” claims of being focused on safety and innovation were little more than a mask, resulting in diminished values of all GM-branded vehicles as a result of both the recall and the automaker’s “corporate culture of ignoring and concealing safety defects.”

For its part, GM vowed in an email to “vigorously defend against plaintiffs’ claims that GM vehicles have reduced resale value.”

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GM Compensation Claims Total 1130, 24 Death Claims Approved http://www.thetruthaboutcars.com/2014/10/gm-compensation-claims-total-1130-24-death-claims-approved/ http://www.thetruthaboutcars.com/2014/10/gm-compensation-claims-total-1130-24-death-claims-approved/#comments Tue, 07 Oct 2014 14:00:29 +0000 http://www.thetruthaboutcars.com/?p=927457 The compensation fund created by General Motors to pay claims resulting from injuries and deaths linked to a defective ignition switch found in a handful of 2003 through 2007 compact models has approved a total of 24 death claims for payout. According to The Detroit News, the overall number of claims jumped 30 percent last […]

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GM RenCen Garden

The compensation fund created by General Motors to pay claims resulting from injuries and deaths linked to a defective ignition switch found in a handful of 2003 through 2007 compact models has approved a total of 24 death claims for payout.

According to The Detroit News, the overall number of claims jumped 30 percent last week, from 867 to 1,130, while total death claims rose from 153 to 165.

Regarding injury claims, 79 for serious injury and 886 for less-serious injury cases were received, up from 70 and 644 respectively the week previous. The number of approved injury claims still stands at 16.

Finally, around 90 to 100 claims were found not eligible for payouts, while 30 victims and their families received settlement offers from the multi-million dollar fund.

Claims will be accepted until December 31, 2014.

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UAW Prepares For Autumn 2015 Detroit Three Negotiatons http://www.thetruthaboutcars.com/2014/10/uaw-prepares-autumn-2015-detroit-three-negotiatons/ http://www.thetruthaboutcars.com/2014/10/uaw-prepares-autumn-2015-detroit-three-negotiatons/#comments Mon, 06 Oct 2014 13:00:04 +0000 http://www.thetruthaboutcars.com/?p=926465 Autumn 2015 will be a big moment for the United Auto Workers, as the union prepares to negotiate new contracts with the Detroit Three, with the aim of improving pay for both Tier 1 and Tier 2 members under conditions that weren’t there in the year prior to the Great Recession. The Detroit News reports […]

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UAW-logo-outside-Union-Solidarity-House

Autumn 2015 will be a big moment for the United Auto Workers, as the union prepares to negotiate new contracts with the Detroit Three, with the aim of improving pay for both Tier 1 and Tier 2 members under conditions that weren’t there in the year prior to the Great Recession.

The Detroit News reports the UAW wants the Detroit Three to give Tier 1 employees the first raise since 2007, as well as add more jobs to the factory floor. Meanwhile, the union is also facing pressure to improve the financial state of Tier 2 employees, who earn less than those grandfathered by the 2007 contracts, with benefits to match.

On the other side of the table, the Detroit Three want to reduce pension costs among those on the floor as they had with those who retired. GM and Ford offered buyouts for employees who agreed to forgo future benefits, while Chrysler froze its plans for 8,000 salaried employees in 2013.

Outside the conference room, Michigan’s right-to-work law will give current union members and new employees the right to not be a part of a union. That said, UAW president Dennis Williams says members in other right-to-work states have remained members despite the option to opt-out, and won’t focus all of his energy on this issue.

As far as striking is concerned, Williams want to avoid using that option “unnecessarily,” but does want the Detroit Three to know that his membership “have sacrificed,” and that new members “want a higher standard of living.” The union recently raised dues 25 percent to replenish its strike fund — having fallen to $600 million — to remind companies how serious the threat of work stoppage can be.

Finally, the UAW will continue to bring aboard transplants in the Southeastern United States, like those working for Volkswagen, Nissan and Mercedes-Benz, as well as suppliers, employees in the gaming industry, and those in higher education.

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GM Puts Stop-Delivery Order On Colorado, Canyon Twins http://www.thetruthaboutcars.com/2014/10/gm-puts-stop-delivery-order-colorado-canyon-twins/ http://www.thetruthaboutcars.com/2014/10/gm-puts-stop-delivery-order-colorado-canyon-twins/#comments Mon, 06 Oct 2014 11:00:14 +0000 http://www.thetruthaboutcars.com/?p=926401 If you ordered one of General Motors’ new mid-size pickups, your delivery may be a bit late, thanks to an airbag recall. Automotive News reports dealers received a note last week from GM informing them that the automaker had notified the National Highway Traffic Safety Administration of an “upcoming safety and noncompliance recall” involving the […]

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Chevrolet Colorados + Car Carrier

If you ordered one of General Motors’ new mid-size pickups, your delivery may be a bit late, thanks to an airbag recall.

Automotive News reports dealers received a note last week from GM informing them that the automaker had notified the National Highway Traffic Safety Administration of an “upcoming safety and noncompliance recall” involving the driver’s side airbag connection being incorrectly wired while the Chevrolet Colorado/GMC Canyon twins were on the assembly line:

This condition will cause the driver-side airbags to not function as designed and may adversely affect the crash performance of the driver-side airbags.

GM says it will deliver a software update to its dealerships “in the next few days,” allowing service techs to reprogram the affected airbag’s sensing and diagnostic module prior to delivery. That said, most of the affected are either at the Wentzville, Mo. assembly plant, in transit, or unsold on the lot.

Speaking of sales of the twins, the automaker reported 36 Colorados and 11 Canyons heading for the old dirt road to the beer-fueled barnyard disco in September.

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Valet Mode Data Recorder In 2015 Corvettes Could Bring Legal Trouble For Some http://www.thetruthaboutcars.com/2014/09/valet-mode-data-recorder-2015-corvettes-bring-legal-trouble/ http://www.thetruthaboutcars.com/2014/09/valet-mode-data-recorder-2015-corvettes-bring-legal-trouble/#comments Tue, 30 Sep 2014 10:00:29 +0000 http://www.thetruthaboutcars.com/?p=921601 Not too long ago, General Motors brought comfort to many a new 2015 Corvette Stingray owner with a feature that would do for them what teddy-bear cams did for concerned parents, recording audio, video and vehicle data when the key was given to the valet. Alas, the spyware could land the owner in legal hot […]

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Not too long ago, General Motors brought comfort to many a new 2015 Corvette Stingray owner with a feature that would do for them what teddy-bear cams did for concerned parents, recording audio, video and vehicle data when the key was given to the valet. Alas, the spyware could land the owner in legal hot water in a dozen states, to say the least.

Automotive News reports GM and Chevrolet will send a software update in October to address the problems that could await owners in two-party states — California, Connecticut, Florida, Hawaii, Illinois, Maryland, Massachusetts, Montana, New Hampshire, Pennsylvania and Washington — were the data recorder used without the consent of the valet. The automaker also notified dealers to inform their customers to not use the system until the update goes through.

The proposed fix could include removing audio recording from the feature, adding a warning informing valets that they’re being recorded, or another method under consideration.

Another notification, signed by GM senior vice president for global quality and customer experience Alicia Boler-Davis, instructs customers to refrain from using the valet mode, or to inform the valet they would be recorded upon taking the car, and to “obtain their consent.”

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Canadian General Motors Plant Hit By Wildcat Strike http://www.thetruthaboutcars.com/2014/09/canadian-general-motors-plant-hit-wildcat-strike/ http://www.thetruthaboutcars.com/2014/09/canadian-general-motors-plant-hit-wildcat-strike/#comments Mon, 29 Sep 2014 14:44:10 +0000 http://www.thetruthaboutcars.com/?p=921418 A wildcat strike at GM’s CAMI plant briefly shut down the assembly plant where the GMC Terrain and Chevrolet Equinox are produced. The strike lasted a mere 2.5 hours. According to the QMI news agency “…a worker at the plant said the incident started in the morning when [a worker] was raising a concern with a […]

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A wildcat strike at GM’s CAMI plant briefly shut down the assembly plant where the GMC Terrain and Chevrolet Equinox are produced.

The strike lasted a mere 2.5 hours. According to the QMI news agency

“…a worker at the plant said the incident started in the morning when [a worker] was raising a concern with a plant supervisor and was ordered to leave the plant along with another union official.

The worker said the walkout affected production at the plant which is running at capacity with three shifts, six days a week.”

The worker in question, Mike van Boekel, is the unit chairperson for Unifor Local 88. He told QMI that as part of the terms of the settlement, he has been asked not to speak about the incident.

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GM, Isuzu Back In LUV http://www.thetruthaboutcars.com/2014/09/gm-isuzu-back-in-luv/ http://www.thetruthaboutcars.com/2014/09/gm-isuzu-back-in-luv/#comments Fri, 26 Sep 2014 13:40:46 +0000 http://www.thetruthaboutcars.com/?p=920154 Isuzu and GM agreed to develop a next-generation mid-size pickup for world markets, though Canada and the United States will get their own distinct model under the terms of the agreement. Although GM has held as much of 49 percent of Isuzu’s equity, the tie-up was wound down in 2006. The two companies have a […]

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Isuzu and GM agreed to develop a next-generation mid-size pickup for world markets, though Canada and the United States will get their own distinct model under the terms of the agreement.

Although GM has held as much of 49 percent of Isuzu’s equity, the tie-up was wound down in 2006. The two companies have a long history of collaboration on trucks, starting with the Chevrolet LUV and continuing through the current Isuzu D-Max, which shares a significant amount of technology with the current GM mid-size trucks.

The next-generation truck will be important for markets like Thailand and Australia, where mid-size pickups play a role akin to America’s full-size trucks.

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S&P Raises GM Grade Rating, Investors Lower Share Price http://www.thetruthaboutcars.com/2014/09/sp-raises-gm-grade-rating-investors-lower-share-price/ http://www.thetruthaboutcars.com/2014/09/sp-raises-gm-grade-rating-investors-lower-share-price/#comments Fri, 26 Sep 2014 13:00:56 +0000 http://www.thetruthaboutcars.com/?p=920074 Though investors are not happy with General Motors as of late, Standard & Poor’s is, boosting the automaker’s investment-grade rating from BBB- to BB+. Detroit Free Press reports the boost — a year after Moody’s raised GM’s status to investment-grade — reflects the automaker’s return to sustained profitability from strong showings in the United States […]

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GM First Day as a Public Company Celebration

Though investors are not happy with General Motors as of late, Standard & Poor’s is, boosting the automaker’s investment-grade rating from BBB- to BB+.

Detroit Free Press reports the boost — a year after Moody’s raised GM’s status to investment-grade — reflects the automaker’s return to sustained profitability from strong showings in the United States and China. GM’s lending arm, GM Financial, also received an investment-grade rating from S&P.

Alas, investors slapped the automaker with a share price of $32.87 at the closing bell Thursday, the first time shares traded under $33 since April 14. The decline is likely the result of a new round of recalls issued earlier this week, affecting 221,000 Cadillac XTS and Chevrolet Impala models from the 2013 through 2015 model years.

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Fifteen Claimants Receive First Offers From GM Compensation Fund http://www.thetruthaboutcars.com/2014/09/fifteen-claimants-receive-first-offers-gm-compensation-fund/ http://www.thetruthaboutcars.com/2014/09/fifteen-claimants-receive-first-offers-gm-compensation-fund/#comments Fri, 26 Sep 2014 11:00:17 +0000 http://www.thetruthaboutcars.com/?p=920026 The compensation fund established by General Motors and managed by attorney Kenneth Feinberg to pay accident and fatality claims linked to a defective ignition switch in a handful of 2003-2007 models has made its first cash offers to 15 claimants. Reuters reports the offers were made verbally earlier this week, and the claims were a […]

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The compensation fund established by General Motors and managed by attorney Kenneth Feinberg to pay accident and fatality claims linked to a defective ignition switch in a handful of 2003-2007 models has made its first cash offers to 15 claimants.

Reuters reports the offers were made verbally earlier this week, and the claims were a mix of accident and fatality cases.

As far as submissions go, 850 claims — including 150 fatality claims — have been filed since the submission window opened August 1. The window will remain open until the end of this year, while claims will be examined for eligibility through the middle of 2015.

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Reuss: Cadillac Move To NYC Will Elevate Brand Profile http://www.thetruthaboutcars.com/2014/09/reuss-cadillac-move-nyc-will-elevate-brand-profile/ http://www.thetruthaboutcars.com/2014/09/reuss-cadillac-move-nyc-will-elevate-brand-profile/#comments Wed, 24 Sep 2014 10:00:20 +0000 http://www.thetruthaboutcars.com/?p=917530 Now that Cadillac and 50 of its B&B have packed up and moved out of Detroit for the American hustle of New York, what do those closest to the brand have to say about the move? General Motors product boss Mark Reuss has a couple of cents to spare. According to Autoblog, Reuss believes the […]

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American Hustle Cadillac Eldorado

Now that Cadillac and 50 of its B&B have packed up and moved out of Detroit for the American hustle of New York, what do those closest to the brand have to say about the move? General Motors product boss Mark Reuss has a couple of cents to spare.

According to Autoblog, Reuss believes the move to New York will help “elevate” Cadillac’s profile onto the radar screens of “some of the people we’d to be on,” particularly those on the coasts who are smitten with BMW, Mercedes and Lexus.

With the premium brand now calling the neighborhood of SoHo home — engineering and design left behind in Detroit — Reuss says brand president Johan de Nysschen and marketing officer Uwe Ellinghaus will be able to better re-examine where Cadillac stands in the luxury game.

Meanwhile, GM CEO Mary Barra had this to say to The Detroit News and other reporters after her appearance on a panel at the annual Clinton Global Initiative in New York:

When you look at how important Cadillac is, we need to have that team dedicated — thinking Cadillac day in and day out. When you think about New York, it’s the perfect place to be. It’s where a lot of luxury is defined. It’s trend-setting — so I think it’s going to be very, very positive.

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Cadillac Moving Headquarters To NYC http://www.thetruthaboutcars.com/2014/09/cadillac-moving-headquarters-nyc/ http://www.thetruthaboutcars.com/2014/09/cadillac-moving-headquarters-nyc/#comments Tue, 23 Sep 2014 15:52:49 +0000 http://www.thetruthaboutcars.com/?p=917266 Cadillac will move its headquarters to New York City’s SoHo district, in a bid to establish itself as a distinct business unit and luxury brand, and put more distance between it and parent company General Motors. Roughly 120 people in sales and marketing functions will be posted to New York City, while the remaining staff […]

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Cadillac will move its headquarters to New York City’s SoHo district, in a bid to establish itself as a distinct business unit and luxury brand, and put more distance between it and parent company General Motors.

Roughly 120 people in sales and marketing functions will be posted to New York City, while the remaining staff in design, engineering, R&D and product development will remain in the Detroit area.

While Reuters reported on the story, along with a host of other outlets, The Daily Kanban was the first to report the development back in August. Citing anonymous sources inside GM, Bertel Schmitt reported that such a move would take place, as well as Cadillac CEO Johann De Nysschen’s proclivity for moving both Audi and Infiniti to newer, swankier digs in Washington, D.C. and Hong Kong respectively.

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Honda, GM Cracking Down On Non-Compliant CPO Programs http://www.thetruthaboutcars.com/2014/09/honda-gm-cracking-non-compliant-cpo-programs/ http://www.thetruthaboutcars.com/2014/09/honda-gm-cracking-non-compliant-cpo-programs/#comments Tue, 23 Sep 2014 14:00:13 +0000 http://www.thetruthaboutcars.com/?p=916922 Honda and General Motors dealers beware: If you’re not strictly adhering to the rules laid out by the certified pre-owned overlords, you might find yourself suspended until conditions improve. Automotive News reports Honda CPO manager Brian Butts and GM CPO chief Larry Pryg both said most of the dealerships under their watch properly administer their […]

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Honda CPO Civic HF

Honda and General Motors dealers beware: If you’re not strictly adhering to the rules laid out by the certified pre-owned overlords, you might find yourself suspended until conditions improve.

Automotive News reports Honda CPO manager Brian Butts and GM CPO chief Larry Pryg both said most of the dealerships under their watch properly administer their respective programs, but those who do not are temporarily suspended.

For Honda, those suspensions are part of why CPO sales are down in 2014; production cuts — and the subsequent low off-lease volumes — following the 2011 Tōhoku earthquake and tsunami account for the rest of the missing sales. Sales dropped 7 percent in comparison to 2013 to 186,248 units.

Meanwhile, GM’s program saw a 10 percent increase in sales through August compared to last year, with 255,077 units leaving the used lot.

As for how those programs are monitored, Honda uses third-party companies to certify compliance, while GM Certified sends out its own reps to visit dealerships one to four times annually; those who comply receive fewer visits.

Honda’s program, which is undergoing a makeover as of this writing, requires non-compliant dealers to submit a plan and work with field staff to be able to sell CPO vehicles again after the 90-day suspension is lifted. GM also removes non-compliant dealers from the program, though no length of time was stated by Pryg.

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Feinberg: 21 Fatality Claims Eligible For Compensation http://www.thetruthaboutcars.com/2014/09/feinberg-21-fatality-claims-eligible-compensation/ http://www.thetruthaboutcars.com/2014/09/feinberg-21-fatality-claims-eligible-compensation/#comments Tue, 23 Sep 2014 13:00:29 +0000 http://www.thetruthaboutcars.com/?p=916906 According to the latest report from the General Motors compensation program published Monday, 21 fatalities linked to the defective ignition switch that launched a thousand recalls will receive payments. Reuters reports 675 claims for serious injury or death were submitted to attorney Kenneth Feinberg’s office since August 1, when acceptance began. The office also reported […]

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2009 Chevrolet Cobalt Kia Store

According to the latest report from the General Motors compensation program published Monday, 21 fatalities linked to the defective ignition switch that launched a thousand recalls will receive payments.

Reuters reports 675 claims for serious injury or death were submitted to attorney Kenneth Feinberg’s office since August 1, when acceptance began. The office also reported 16 serious injury claims were proclaimed eligible for compensation.

Out of the claims submitted thus far, 143 were fatality claims, up from 131 reported earlier last week. Meanwhile, the 21 claims paid-out exceed GM’s own reported 13 fatalities linked to the switch used in a handful of Chevrolet, Pontiac and Saturn compacts in the early to mid-2000s.

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US District Court Orders Discovery For Some GM Ignition Switch Suits http://www.thetruthaboutcars.com/2014/09/us-district-court-orders-discovery-gm-ignition-switch-suits/ http://www.thetruthaboutcars.com/2014/09/us-district-court-orders-discovery-gm-ignition-switch-suits/#comments Mon, 22 Sep 2014 14:00:32 +0000 http://www.thetruthaboutcars.com/?p=916226 Last Friday, U.S. District Judge Jesse Furman issued from his bench in the Southern District of New York an order for discovery to begin on a number of cases related to the February 2014 General Motors ignition switch recall. Reuters reports the order covers suits not tied to an ongoing case regarding GM’s battle to […]

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A recalled Chevy Cobalt ignition switch is seen at Raymond Chevrolet in Antioch

Last Friday, U.S. District Judge Jesse Furman issued from his bench in the Southern District of New York an order for discovery to begin on a number of cases related to the February 2014 General Motors ignition switch recall.

Reuters reports the order covers suits not tied to an ongoing case regarding GM’s battle to maintain its liability shield as erected in bankruptcy court back in 2009. Furman added that discovery should only focus on requests made to the automaker for supporting documents on a “reasonable, but aggressive schedule,” with depositions to be obtained at a later date.

The order comes as 131 fatality claims were filed thus far with the compensation fund established by GM, and maintained by attorney Kenneth Feinberg and his team of experts. The fund also identified a total of 19 fatalities linked to the ignition switch found in 2.6 million Chevrolet, Pontiac and Saturn compact vehicles, up from the automaker’s original count of 13.

Meanwhile, the bankruptcy protection case won’t have a verdict until sometime in 2015. The automaker’s lawyers had requested discovery be delayed until after the case was resolved.

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Cadillac’s RWD Flagship Is Going Into Production http://www.thetruthaboutcars.com/2014/09/cadillacs-rwd-flagship-going-production/ http://www.thetruthaboutcars.com/2014/09/cadillacs-rwd-flagship-going-production/#comments Fri, 19 Sep 2014 19:48:49 +0000 http://www.thetruthaboutcars.com/?p=915258 Cadillac confirmed that a rear-drive flagship would go into production next year at GM’s Detroit-Hamtramck assembly plant. In a statement released to the media, Cadillac boss Johan De Nysschen said “The objective for this upcoming model is to lift the Cadillac range by entering the elite class of top-level luxury cars. Currently in development, this new […]

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Cadillac confirmed that a rear-drive flagship would go into production next year at GM’s Detroit-Hamtramck assembly plant.

In a statement released to the media, Cadillac boss Johan De Nysschen said

“The objective for this upcoming model is to lift the Cadillac range by entering the elite class of top-level luxury cars. Currently in development, this new rear wheel drive-oriented sedan uses completely new, custom-designed materials on a unique vehicle architecture.”

Riding on the all-new Omega rear-drive platform, the car will be unveiled in the first half of 2015. Styling is said to be inspired by the Elmiraj show car that won critical acclaim at its 2013 debut at Pebble Beach.

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Howes: No Escape Yet From Recall Woes For General Motors http://www.thetruthaboutcars.com/2014/09/howes-escape-yet-recall-woes-general-motors/ http://www.thetruthaboutcars.com/2014/09/howes-escape-yet-recall-woes-general-motors/#comments Fri, 19 Sep 2014 12:00:07 +0000 http://www.thetruthaboutcars.com/?p=915162 After running the gauntlet of congressional hearings, numerous recalls and personnel firings under the dark cloud of scandal created in the wake of the February 2014 recall crisis, General Motors believes it’s ready to turn the page, that everything is now in the rear view. Not so fast. The Detroit News‘ own Daniel Howes states […]

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GM RenCen Storm Clouds

After running the gauntlet of congressional hearings, numerous recalls and personnel firings under the dark cloud of scandal created in the wake of the February 2014 recall crisis, General Motors believes it’s ready to turn the page, that everything is now in the rear view.

Not so fast.

The Detroit News‘ own Daniel Howes states that the next chapter of the story has just begun, with the combination of this week’s congressional hearing — where National Highway Traffic Safety Administration director David Friedman experienced the lash from the Senate Commerce Committee — and the revelation of 131 fatality claims submitted to the victim compensation plan GM hired compensation expert Kenneth Feinberg to run.

The transparency and independence granted to Feinberg — including weekly updates on the number and types of claims submitted and approved/rejected — and the open-ended nature of the fund itself as far as compensation is concerned are both likely to further dent the automaker’s reputation until the last claims are put through the paces mid-2015.

Further, with investigations by the U.S. Justice Department and the Securities and Exchange Commission nowhere near close to completion, as well as the possibility of Attorney General Eric Holder bringing the hammer down on GM or its lower-level execs in the same manner as Toyota suffered, it may be a long time before the automaker’s reputation recovers to what it once was.

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131 Fatality Claims Filed With GM Compensation Fund Thus Far http://www.thetruthaboutcars.com/2014/09/131-fatality-claims-filed-gm-compensation-fund-thus-far/ http://www.thetruthaboutcars.com/2014/09/131-fatality-claims-filed-gm-compensation-fund-thus-far/#comments Wed, 17 Sep 2014 13:00:23 +0000 http://www.thetruthaboutcars.com/?p=913714 Yesterday, we reported General Motors accepting there were 19 fatalities linked to a defective ignition switch originally tied to 13 deaths and 31 accidents, thanks in part to the compensation fund established with the aid of administrator and attorney Kenneth Feinberg. More could be on the way, however, as 131 fatality claims have been submitted […]

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GM ignition diagram

Yesterday, we reported General Motors accepting there were 19 fatalities linked to a defective ignition switch originally tied to 13 deaths and 31 accidents, thanks in part to the compensation fund established with the aid of administrator and attorney Kenneth Feinberg. More could be on the way, however, as 131 fatality claims have been submitted thus far.

The Detroit News reports a total of 482 claims have been filed with the compensation fund since August 1, 2014, when the window for accepting claims was first opened. Some of the claims may end up being denied due to not adhering to the requirements for filing, such as the vehicle involved. That said, the two dozen administrative officials and economists involved in sorting out the claims haven’t yet said how many of the claims will be denied.

Compensation for approved fatality claims will be at least $1 million plus lost economic value per life, along with $300,000 each for surviving spouses and children for pain and suffering. Claims will continue to be accepted until the end of the year, which may see the official death toll increase by the time all claims have been examined in mid-2015.

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Friedman: GM, Not NHTSA, Most To Blame For Recall Crisis http://www.thetruthaboutcars.com/2014/09/friedman-gm-nhtsa-blame-recall-crisis/ http://www.thetruthaboutcars.com/2014/09/friedman-gm-nhtsa-blame-recall-crisis/#comments Wed, 17 Sep 2014 11:00:00 +0000 http://www.thetruthaboutcars.com/?p=913658 It was a long day for David Friedman and the National Highway Traffic Safety Administration during congressional testimony Tuesday, admitting before a Senate panel that his agency has more work to do to improve itself, and that General Motors made “incredibly poor decisions” as far as recalls were concerned. Automotive News reports Friedman and the […]

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David Friedman

It was a long day for David Friedman and the National Highway Traffic Safety Administration during congressional testimony Tuesday, admitting before a Senate panel that his agency has more work to do to improve itself, and that General Motors made “incredibly poor decisions” as far as recalls were concerned.

Automotive News reports Friedman and the NHTSA came under harsh criticism before the U.S. Senate Commerce, Science and Transportation committee’s consumer protection subcommittee during this second round of testimony. Senator Claire McCaskill of Missouri made the deputy administrator aware of the panel’s overall frustration with the excuses for why the NHTSA did not act swiftly in forcing GM to recall vehicles affected by an out-of-spec ignition switch now linked to 19 deaths and 31 injuries.

In turn, Friedman deflected criticism of the agency by placing the blame upon the automaker, proclaiming the execs “were more worried about [the NHTSA] getting information about problems than they were about actually fixing problems.” He added that a “new normal” has since been established upon all automakers, whereupon any defect is immediately reported to the agency, and that it would have “zero tolerance” on those who fail “to act quickly and aggressively” on reporting such flaws.

Regarding the original case, Friedman said that his agency lacked “ample information” in 2007 to determine whether or not a defect was to be found in the aforementioned ignition switch, despite a report by a House committee issued earlier in the day stating the opposite.

After testimony, Sen. McCaskill stated she found Friedman’s statements troubling, proclaiming he was more concerned with rebutting the news media than with taking responsibility for his and his agency’s role in the GM recall crisis.

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De Nysschen Says Cadillac Will Stick With Pricing Strategy, Confirms New York City Move http://www.thetruthaboutcars.com/2014/09/de-nysschen-says-cadillac-will-stick-pricing-strategy-confirms-new-york-city-move/ http://www.thetruthaboutcars.com/2014/09/de-nysschen-says-cadillac-will-stick-pricing-strategy-confirms-new-york-city-move/#comments Tue, 16 Sep 2014 15:03:50 +0000 http://www.thetruthaboutcars.com/?p=913314 Cadillac’s aggressive pricing strategy is here to stay, according to the brand’s new chief, Johan De Nysschen, and if he has his way, there won’t be major incentives to help juice sales either. Speaking to Automotive News, De Nysschen said “We cannot deny the fact that we are leaving behind our traditional customer base…It will take […]

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Cadillac’s aggressive pricing strategy is here to stay, according to the brand’s new chief, Johan De Nysschen, and if he has his way, there won’t be major incentives to help juice sales either.

Speaking to Automotive News, De Nysschen said

“We cannot deny the fact that we are leaving behind our traditional customer base…It will take several years before a sufficiently large part of the audience who until now have been concentrating on the German brands will find us in their consideration set. Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars, or you have to drop the price and continue to transact at the prices where you were historically. I think the logical conclusion is that it’s better to build off a very solid base in terms of [product] credibility, charge a fair price for the car and realize you have to wait until the volume comes,”

 

De Nysschen’s strategy is partly based on the playbook he used at Audi, where he oversaw a gradual, deliberate climb from an obscure luxury arm of Volkswagen into Tier 1 luxury brand status, through a combination of engineering, marketing and a focus on interior and exterior design.

The story of Audi is unique due to the fact that it stands in stark contrast to the desire for rapid short-term results in many corners of the auto industry. It’s tempting to think of Audi as an overnight success story, but the reality could not be more different. De Nysschen is hoping to emulate that same pattern of growth, but that will require a fair amount of latitude from GM management, and the commitment to a longer-term vision that has not always been present at the auto maker. De Nysschen also confirmed that some functions will move to New York City, though details were unclear.

According to De Nysschen, he will have a hand in all functions of the brand, from engineering to design to product planning to dealer development. In the short-term, he must deal with relatively poor sales for the brand’s ATS and CTS sedans, ballooning inventories and a pricing strategy that has the new sedans competing head to head with the German brands in terms of sticker price. De Nysschen is willing to play the long game on this last front – but he’ll have to count on GM’s buy-in at every step of the way for it to work.

 

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Generating Content http://www.thetruthaboutcars.com/2014/09/generating-content/ http://www.thetruthaboutcars.com/2014/09/generating-content/#comments Tue, 16 Sep 2014 14:16:18 +0000 http://www.thetruthaboutcars.com/?p=913042 A heretofore unknown publication dubbed Gadget Review published a video outlining  “How to Charge BMW’s i3 Electric Car in a Desert (or Any Where)” using a Honda generator. I’m sure that somebody somewhere thought that this would be a great concept for “shareable” content (including the part where the host attempts to run the generator […]

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Click here to view the embedded video.

A heretofore unknown publication dubbed Gadget Review published a video outlining  “How to Charge BMW’s i3 Electric Car in a Desert (or Any Where)” using a Honda generator. I’m sure that somebody somewhere thought that this would be a great concept for “shareable” content (including the part where the host attempts to run the generator inside the vehicle). The actual idea didn’t yield a ton of juice for the i3’s battery, but the idea of using generators to assist EV charging isn’t entirely unknown.

Long before the Chevrolet Volt, GM’s EV experimented were far cruder, and involved, you guessed it, Honda generators rigged to battery packs as an ersatz range extender. According to a former GM engineer and friend of TTAC, the generator would kick in as the batteries depleted themselves, allowing the prototype vehicle (a Geo Storm) to recharge the batteries and make its way home. “Some of those guys ended up working on the EV1 and are still at GM,” he told us. “I bet that’s where the inspiration for the Volt came from.”

This begs the question – why not just get the i3’s optional from the get-go, and avoid this problem altogether?

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