**GM preparing for bankruptcy**

[vztrt]

http://www.goauto.com.au/mellor/mell...2578880027B8ED

Fifth quarter in the black as leaner General Motors keeps the profits coming

6 May 2011

By RON HAMMERTON

A RESURGENT General Motors has announced a $US3.2 billion ($A3b) first-quarter net profit, continuing its run of five straight quarters in the black since emerging from chapter 11 bankruptcy.

More than triple last year’s first-quarter net profit of $US865 million ($A808m), the GM result eclipsed rival Ford’s 2011 Q1 result of $US2.6 billion ($A2.4b).

However, the GM balance sheet included $US1.5 billion ($A1.4b) from the sale of preferred shares in its Delphi component business and its former GMAC finance division, Ally Bank in the US, where earnings were otherwise flat compared with last year.

The profit came as GM lifted its global quarterly vehicle sales by 11 per cent to 2.2 million, putting it on track to top nine million vehicles in 2011 and almost certainly regain its number one sales crown from earthquake-hit Toyota.

GM’s Q1 sales revenue was $36.2 billion, up $4.6 billion or 1.4 per cent on last year. This compares with Ford’s $33.1 billion, up $5 billion.

GM chairman and CEO Dan Akerson said: “We are on plan. GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth.”

The company revealed that its North American vehicle sales increased by 21.2 per cent, to 684,000 vehicles, over the deflated figures of a year ago, while GM International Operations – which includes its Chinese, South Korean and Australian operations – increased its vehicle sales by 8.2 per cent.

While GM’s European division improved its sales volumes and revenues, it still lost $390 million in earnings before tax and interest, mainly due to a one-off charge of $400 million. However, that was an improvement from a loss of $477 million for the same period of 2010.

In the United States, GM lifted its market share from 18.4 per cent to 19 per cent, while also raising its estimated worldwide share from 11.1 per cent to 11.5 per cent.

More tellingly, GM’s factories in North America ran at 99.1 per cent capacity in the January-March quarter, compared with 85.1 per cent.

GM ended the quarter with $36.5 billion in cash, compared with $27.6 billion at the end of the fourth quarter of 2010.

GM CFO Dan Ammann said the company had great potential to deliver profitable growth around the world as the recovery continued.

“While we’re encouraged, we keenly recognise we have more opportunities to leverage our scale, improve spending and investment efficiencies, and optimize our strong balance sheet,” he said.

GM recently reported a full-year 2010 profit of $4.7 billion – its first year in the black since 2004.

The profit ended a string of losses totaling $90 billion, which would have brought the company down in the global financial crisis had the United States and Canadian governments not stepped in.

The US Treasury still holds a 26 per cent stake in GM as a result of the bailout, after selling about half of its shareholding in a share offer.

[vztrt]

http://www.autoblog.com/2011/05/05/g...cutive-profit/

Official: GM earns $3.2 billion in Q1 2011, marks fifth consecutive profitable quarter

by Zach Bowman (RSS feed) on May 5th 2011 at 10:27AM

General Motors has just announced the company's financial results for the first quarter of 2011. The automaker pulled in a net income of $3.2 billion, marking the fifth-consecutive profitable quarter for the largest of the Big Three. Compared to one year ago, GM saw revenue increase by $4.7 billion to $36.2 billion. Additionally, GM says that net income attributable to common shareholders increased by $1.9 billion thanks to the sale of its stake in Delphi Automotive and Ally Financial, though the company saw a $400 million goodwill impairment charge at GM Europe and a $100 million change in tax regulations tied to the manufacturer's joint venture in India. As a result, total net income attributable to common shareholders totaled out at $1.5 billion.

All said, earnings before interest and tax were $3.5 billion, though that number dropped to $2 billion once adjusted to include special items. During the same period last year, EBIT was $1.7 billion.

GM says that it expects to see numbers besting those of the first quarter throughout the remainder of 2011. Hit the jump for the full press blast.
[Source: GM | Images: Paul Sancya/AP]

PRESS RELEASE

GM Reports Net Income of $3.2 Billion
2011-05-05

Net income of $1.77 per share including a net gain from special items of $0.82 per share

EBIT of $3.5 billion and EBIT-adjusted of $2.0 billion

GM Europe achieves breakeven results on an EBIT-adjusted basis

DETROIT – General Motors Company (NYSE: GM) today announced first quarter net income attributable to common stockholders of $3.2 billion, or $1.77 per fully-diluted share, marking the company's fifth consecutive profitable quarter. Revenue increased $4.7 billion to $36.2 billion, compared with the first quarter of 2010.

"We are on plan," said Dan Akerson, chairman and CEO. "GM has delivered five consecutive profitable quarters, thanks to strong customer demand for our new fuel-efficient vehicles and a competitive cost structure that allows us to leverage our strong brands around the world and focus on driving profitable automotive growth."

Net income attributable to common stockholders includes gains of $1.6 billion and $0.3 billion respectively related to the sales of the company's ownership interest in Delphi Automotive LLP and Ally Financial Inc. preferred stock. It also includes a $0.4 billion goodwill impairment charge at GM Europe (GME) resulting from a change in accounting standards and charges totaling $0.1 billion at GM International Operations (GMIO) related to revised tax regulations affecting the company's India joint venture. Combined, these special items increased net income attributable to common stockholders by $1.5 billion or $0.82 per fully-diluted share.

Earnings before interest and tax (EBIT) were $3.5 billion. EBIT adjusted to exclude special items was $2.0 billion compared with $1.7 billion in the first quarter of 2010.

GM Results Overview (in billions except for per share amounts)

Q1 2010
Q1 2011
Revenue
$31.5
$36.2
Net income attributable to common stockholders
$0.9
$3.2
Earnings per share (EPS) diluted
$0.55
$1.77



EBIT
$1.8
$3.5
Less special items
$0.1
$1.5
EBIT – adjusted
$1.7
$2.0
Impact of special items on EPS diluted
$0.08
$0.82



Automotive net cash flow from operating activities
$1.9
$(0.6)*
Automotive free cash flow
$1.0
$(1.9)*



* Includes $2.5 billion negative impact related to wholesale advance financing agreement termination
GM North America (GMNA) reported EBIT of $2.9 billion compared with $1.2 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMNA increased its earnings by $0.1 billion to $1.3 billion compared with the first quarter of 2010. The company expects GMNA's quarterly EBIT-adjusted results to improve on average for the remainder of the year compared with the first quarter as better pricing and improved fixed cost should more than offset commodity cost increases and unfavorable mix.

GME reported EBIT of $(0.4) billion. GME's results improved by $0.6 billion on an EBIT-adjusted basis compared with the first quarter of 2010 and it achieved a significant milestone by delivering breakeven results on that basis. Based on current plans, GME is targeting to achieve breakeven results on an EBIT-adjusted basis before restructuring for the entire year.

GMIO reported EBIT of $0.5 billion compared with $0.9 billion in the first quarter of 2010. On an EBIT-adjusted basis, GMIO earned $0.6 billion in the first quarter, a decline of $0.3 billion compared with the first quarter of 2010.

GM South America (GMSA) reported EBIT of $0.1 billion, down $0.2 billion from the first quarter of 2010. There were no adjustments in either period.

GM expects that full-year 2011 EBIT-adjusted results will show solid improvement over 2010. GM continues to expect no material impact on full-year results from the Japan crisis.

For the quarter, automotive cash flow from operating activities was $(0.6) billion and automotive free cash flow was $(1.9) billion. Both figures include the $2.5 billion cash impact of GM's decision, announced in October 2010, to end a wholesale advance agreement with Ally Financial.

GM ended the quarter with very strong total liquidity of $36.5 billion. Automotive cash and marketable securities, including Canadian Health Care Trust restricted cash, was $30.6 billion compared with $27.6 billion at the end of the fourth quarter of 2010.

"GM has great potential to deliver profitable growth around the world as the recovery continues," said Dan Ammann, senior vice president and CFO. "While we're encouraged, we keenly recognize we have more opportunities to leverage our scale, improve spending and investment efficiencies, and optimize our strong balance sheet."

[vztrt]

http://www.autoblog.com/2011/05/06/g...tune-500-list/

GM leaps Ford into top 10 on 2011 Fortune 500 list

by Chris Shunk (RSS feed) on May 6th 2011 at 1:31PM

Ford has been taking the lion's share of the headlines lately thanks to a fresh product lineup and a string of very impressive profit margins, but General Motors has been winning on the revenue front. CNN Money's annual Fortune 500 list was recently published, and GM climbed all the way from number 15 in 2010 to number seven in 2011. The General managed $135 billion in revenue, putting the automaker behind only Wal-Mart, some oil companies and a couple financial/investment conglomerates.

Meanwhile, Ford's Fortune ranking went in the other direction. The Dearborn, Michigan-based automaker went from number eight in 2010 to number 10 for 2011. The Blue Oval dropped in the rankings in spite of the fact that revenue jumped from $118 billion in 2010 to $128 billion in 2011.

While GM can claim a higher Fortune 500 ranking than Ford, we're guessing nobody in Dearborn is losing sleep over the matter. Both companies are in the top 10 and each company is solidly profitable, and that's the stuff happy stockholders are made of.
[Source: CNN Money]

[Buntz]

Ford actually paid off debt. Has GM done this? No.

It's easy to claim profits when the country has to bail you out, and exempt you from $14 (or more) billion in taxes... that I'm pretty sure Ford weren't exempt from.

[Resurrection]

Production numbers don't equal sales numbers

http://www.zerohedge.com/article/gm-...s-record-april

[vztrt]

http://www.autoblog.com/2011/05/09/g...nion-over-pay/

GM workers suing company, union over pay

by Aaron Richardson (RSS feed) on May 9th 2011 at 10:28AM

28 workers at the Lordstown, Ohio Chevrolet plant are suing General Motors and the UAW after they claim they were wrongfully classified as temporary employees. According to the workers' complaint, they were paid 40 percent less than their permanent counterparts. The suit also accuses UAW Local 1112 of ignoring their complaints and refusing to go to bat for them.

The workers were hired in 2006, layed off in 2007, and brought back on six months later. When they were rehired, they say they were briefly payed the correct amount, but were wrongfully reclassified as temporary in June of 2008.

For their trouble, the workers are looking for between $3-4 million in back pay, at the rate they say should have been theirs all along. General Motors is keeping its lips buttoned on the suit, but UAW Local 1112 says it is not at fault.
[Source: MLive | Images: Paul Sancya/AP]

[phillyc]

Originally Posted by vztrt

http://www.autoblog.com/2011/05/06/g...tune-500-list/

Interesting link. Particularly the full list.

The PROFIT Ford made was 5% higher on revenue which was 5% lower than General Motors. Effectively Ford is doing much better. Adding to that, Ford did it without bailout money and without writing off tens of billions of debt to creditors.

[phillyc]

Originally Posted by vztrt

http://www.autoblog.com/2011/05/05/g...cutive-profit/

Nice HEADLINE GRABBING profit announcement. Look at me, look at me. We're better than Ford!

But, in typical GM fashion, looking closer at the figures this is what is important.

All said, earnings before interest and tax were $3.5 billion, though that number dropped to $2 billion once adjusted to include special items. During the same period last year, EBIT was $1.7 billion.

It is still a tremendous turnaround from recent years past. I do commend them on that.

Without the bankruptcy, a restructure that could only be completed under bankruptcy, writing off of billions I don't know how much money they would be making. They were after all within days from closing their doors forever.

This is why we should be so proud of Ford. They did it THEMSELVES and if you look at the actual figures. Ford is the one making money and paying off actual debt. GM have been borrowing to pay government borrowings and then spruiking how they are paying back the government...

[EgoFG]

Semantics I know ... but ...

GM did not go bankrupt.
They were insolvent, and filed for Bankruptcy protection.

They then, with the assistance of the law, avoided their debt (pushing it to a new dummy company).

In Addition to this they got a huge loan from the Government that they converted into Equity.

It is extremely unlikely at the moment that the government will get all their money back as they will sell their equity at a loss.
Whatever the amount of that loss is should be considered "free government money" for GM - ie bailout.

[janddbone]

Technically it was the other way around. Not that it really matters with regards to the point you were making.

The debt and unwanted assets stayed with the old company. Assets that were wanted went to a new company along with new Government debt!!!

Otherwise you are most certainly correct...

[vztrt]

http://www.autoblog.com/2011/05/10/g...lant-upgrades/

Report: GM to invest $2 billion in plant upgrades

by Chris Shunk (RSS feed) on May 10th 2011 at 10:30AM

Auto sales are continuing to rise here in the U.S., and carmakers are working hard to gain as many new buyers as possible. For many of them, adding sales means investing in plants, which General Motors appears willing to do. The Detroit News is reporting that GM is planning on investing $2 billion in 17 production facilities this year alone.

GM CEO Dan Akerson is expected to announce the investment at its Toledo transmission plant today. The chief executive will reportedly inform the rank and file that the automaker is investing $250 million in the facility, which while also lead to 250 new jobs. The announcement will be big news for the state of Ohio, and the mayor of Toledo and Governor John Kasich will be in attendance.

Details are sketchy regarding other investment opportunities, though the Detroit Hamtramck plant that currently builds the Chevrolet Volt is expected to be among the plants receiving upgrades. GM plans to rework the production line to make room for the 2013 Malibu, giving the automaker flexibility to increase volume as demand increases.

The added investment in facilities is good news for America's battered manufacturing sector, while at the same time helping GM better utilize its existing plants. In total, the investment should help create or retain about 4,200 jobs, which should help GM at the negotiating table with Bob King and the United Auto Workers this summer.
[Source: The Detroit News]

[vztrt]

http://www.autoblog.com/2011/05/13/g...s-in-the-fold/

Report: GM failing to keep Hummer, Pontiac and Saturn buyers in the fold

by Zach Bowman (RSS feed) on May 13th 2011 at 1:01PM

The Wall Street Journal is reporting that General Motors has been unable to hold onto the loyalty of new car shoppers who formerly owned vehicles from one of the automakers now-defunct brands. Hummer, Pontiac and Saturn owners are now turning outside of the GM family for their new purchases.

Despite the fact that GM has offered up to $1,000 to those customers during January and February, around 71 percent of Saturn owners traded their vehicle for another brand this year. Likewise, 70 percent of Pontiac drivers opted for a different make when it came time to replace their vehicle in 2011.

While 23 percent of Saturn drivers switched for a Chevrolet, 35 percent turned in their keys for a Honda, Toyota or Ford product.

Speaking of Ford, the report notes that Blue Oval is suffering from similar woes when it comes to Mercury customers. Those buyers headed towards other automakers at a rate of 65 percent this year.
[Source: The Wall Street Journal]

[vztrt]

http://www.autoblog.com/2011/05/13/c...m-in-gm-stock/

Report: CEO Akerson buys nearly $1M in GM stock

by Jeff Glucker (RSS feed) on May 13th 2011 at 9:00AM

What's a good way for a CEO to show that he supports his company? Buying stock is one way to do it, and General Motors CEO Dan Akerson has done just that.

Purchased as a personal investment, Akerson has reportedly spent nearly $1 million buying up 30,000 GM shares. Akerson paid $31.33 per share, for a total purchase of $939,000. According to The Detroit News, this move brings his total investment of General Motors stock up to an even 50,000.
[Source: The Detroit News | Images: General Motors]

[vztrt]

http://www.autoblog.com/2011/05/13/g...lost-benefits/

Report: General Motors retirees suing for lost benefits

by Jeff Glucker (RSS feed) on May 13th 2011 at 7:59AM
GM Renaissance Center

Part of the reason that General Motors survived its recent bout with bankruptcy is that it greatly reduced the amount of benefits it was paying to its retired workers. Now, more than 100 former GM executives are suing because they feel the automaker owes them dough.

General Motors has a plan administrator that examines all the claims made by the retirees. It states that all claims were reviewed and rejected in accordance with the requirements that the automaker needed to navigate through serious debt obligations and Chapter 11 bankruptcy.

The retired executives disagree.

Brian Koncius, a lawyer for the former GM employees, stated that his clients believe GM is incorrectly calculating retirement benefits, and that General Motors is cutting costs the wrong way. Rather than reducing the benefit by 2/3 of the amount over $100,000, GM is simply lopping off 2/3 of the entire executive benefit. That adds up to a huge difference in benefit payouts.
[Source: The Detroit News | Images: Paul Sancya/AP Photo]

[vztrt]

http://www.autoblog.com/2011/06/02/f...at-14-billion/

Report: Federal auto bailout losses estimated at $14 billion

by Chris Shunk (RSS feed) on Jun 2nd 2011 at 10:01AM

The federal bailout of General Motors and Chrysler cost U.S. taxpayers roughly $80 billion back in 2009, but only two years later, it appears Uncle Sam will get most of its money back. The Associated Press reports that the Obama Administration now estimates that the bailout will "only" cost taxpayers $14 billion. That's down significantly from the projected 60 percent loss estimated by the Treasury Department back in 2009, and the money is also expected to arrive much sooner than originally expected.

The Obama Administration released the more optimistic view of bailout payback prospects in advance of a visit by the President to a Chrysler plant in Ohio. Conveniently, Chrysler last week paid off its $5.9 billion in U.S. loans and $1.7 billion in Canadian loans, putting the bailouts back in the news, albeit with a positive spin. GM, meanwhile, has already paid back more than half its $50 billion in loans, and the government still holds a significant portion of GM stock, which it can sell to further cut the cost of the bailout.

Treasury Secretary Timothy Geithner points to the bailouts as a cornerstone of the resurgence of manufacturing jobs, adding "While we will not get back all our investments in the industry, we will recover much more than predicted."
[Source: Associated Press | Images: Mandel Ngan/AFP/Getty]

[EgoFG]

So - Loan Given by government, converted to stock, stock sold (to be sold) at a projected 14 Bill loss.

Therefore GM got 14 Billion in free money.

IIRC, Ford did not get a Loan as a direct result of the US Financial Crisis, Chrysler Did - but did not convert it to equity, and has now paid it back.

So GM got 14 billion for free !

[vztrt]

http://www.autoblog.com/2011/07/06/g...n-to-pre-bank/

Report: Glut of unsold pickups has GM critics fearing return to pre-bankruptcy habits

by Zach Bowman (RSS feed) on Jul 6th 2011 at 6:01PM

Some analysts are concerned that General Motors is falling back into old habits by producing far more vehicles than the market can support. Bloomberg is reporting that the automaker's dealers are currently sitting on a 122-day supply of pickup trucks. That's more than twice the average for most models.

Meanwhile, competition like the Ford F-150 hangs around its lots for about 79 days before finding a home. GM enjoyed similar performance between 2002 and 2010, when its Silverado and Sierra trucks averaged 79 days on the lot, but now says that the company is producing sufficient volumes to meet demand and that somewhere between 100 and 110 days will be the new normal moving forward.

But analysts interviewed by Bloomberg disagree, saying that a dated product, a slow economic recovery and overzealous production has led to an overstock scenario and that the automaker hasn't learned any of the painful lessons of its bankruptcy. GM counters by suggesting that trucks require a larger dealer supply because of the variety of weight classes, cab and bed configurations and engine options.

[janddbone]

I take GM's word on that, it makes sense... They would have learnt all the lesons they coud possibly learn!

[Resurrection]

http://www.thecarconnection.com/news...oubling-levels

[vztrt]

How the Middle East was lost

http://www.goauto.com.au/mellor/mell...2578CA00273CA0

Poor quality cost GM Holden its Middle East business, says company executive

11 July 2011

By IAN PORTER

QUALITY and service problems played a large role in undermining what had been a successful GM Holden push into Middle Eastern markets, according to one of the company’s senior purchasing executives.

The admission came during a frank exchange between parts suppliers and three senior purchasing officers from the local vehicle producers at last week’s AutoCRC national conference.

While optimistic about the industry’s future beyond 2015, all three urged parts suppliers to redouble their efforts to stay competitive and come up with products that can help set Australian cars apart from their rivals.

“We had the Middle East business, anchored in Melbourne, and we lost that; we lost it because of poor quality,” said GM Holden’s Michael Filazzola.

“It was also in the way we way we actually executed the program. That gave us a bit of a realisation that the rest of the world has passed us by.”

He said GMH executives thought they were doing a good job when they were not.

“We stood still, we thought we actually were doing a good job, but we really weren’t.

“It was nothing complicated. It was simple focus. We lost our way. We assumed things would happen, as opposed to executing and doing the follow-up.”

Toyota stressed the importance of exports to its Australian operations, with purchasing officer Barry Budge saying the company still maintained a staff of Australians in the Middle East to service that business.

“We have been exporting for quite some time and we have a very strong focus on our Middle East customers,” said Mr Budge.

“We need to take their tastes and requirements into account. That’s why we have so many people over there trying to capture that information and data first-hand.

“But we cannot lose sight of the domestic market. If we don’t have a domestic market, we won’t have an export market, and that means we won’t have manufacturing. The domestic market is extra-important.”

Ford Australia’s Carl Parkin said the Blue Oval was considering what platform to manufacture after 2015 and suggested the company may get back into export during the next model cycle.

“If we produce an alternative vehicle to the Falcon and Territory here in Australia, it has to be exportable,” he said.

“We are quite restricted at the moment in that we can only produce right-hand-drive vehicles. That’s been a help to us in some ways but has also been a challenge in terms of finding alternative markets for the vehicles.

“In terms of the future, it will definitely be a global platform and a vehicle we can export.”

When asked about the imbalance caused by the strong dollar and Australia’s tariffs – the lowest of any car-making country in the world – Toyota’s Mr Budge said nothing was going to change there.

But he said Australia – and the industry – should fight harder to gain access to regional markets.

“There are a few countries in the region where the barriers are still there. They’ve got to come down and they have got to come down quickly,” said Mr Budge.

“If they don’t, we’re not going to be able to export into the region. If we don’t do that in the next five years none of us will be here.

“We all have to work as an industry to bring down those barriers so we can export into those markets.”

Ford’s Mr Parkin reminded the conference of the dirty trick played by the Thais after Australia and Thailand had concluded a free-trade agreement.

“We had a nice agreement with the Thais saying there would be zero tariffs and then they slapped a sales levy on six-cylinder vehicles and stopped us straight away,” he told the conference.

The supply executives were also challenged on their attitude to dropping local suppliers and switching to imported parts for their Australian-built cars.

All three said they preferred to have local suppliers, although their products and their management sometimes left room for improvement.

Mr Filazzola said GM as a group had changed tack and was now concentrating on working closely with suppliers and bringing them in early in the development process.

After years of “cost-down” pressure on local suppliers, Mr Filazzola said GM was now approaching suppliers more as partners.

“So we’re busy changing ourselves and we have put a lot of work into developing suppliers, in the areas we need to,” he said. “I’ve seen a big shift in relationships with suppliers.”

Mr Filazzola has only been back in Melbourne for a few months after a four-year stint in China, where he spent a lot of time developing suppliers.

“They are now probably the most robust supplier group anywhere. And we’re doing the same thing here.

“GM has gone through a turbulent few years, and we’ve realised that suppliers are pretty much part of us. We build here, they need to be with us, we’ve made that decision.”

Mr Budge said Toyota also wanted to have suppliers close at hand, but he was concerned about falling skill levels in the management ranks.

“We are constantly battling to maintain the local supplier base, and the fundamentals that should be there are sometimes not,” said Mr Budge.

“That’s the result of a high churn factor across parts suppliers. At the moment I think quality is suffering because we don’t have the right skill and expertise.

“We have a high turnover of quality managers in the industry and I think to achieve the costs we are dependent on – and that we are demanding from the suppliers – we are cutting back on those skills (that) we need to go forward and have a future.”

But there are many instances of supplier behavior that cause anxiety for the three OEMs.

“The thing that frustrates me the most is we get to the point of no return and suddenly a massive issue appears which could have been avoided if we had talked about it earlier,” said Ford’s Mr Parkin.

“Whether it’s about financing or quality or whatever, the lack of communication – sometimes it’s on our part as well – that drives extra costs and issues into our businesses could be avoided just by communicating.

“We understand that we make decisions that cause people problems. I would much rather people put their hands up at the time that is happening, rather than three months down the line have a bigger problem.”

Each executive stressed the need for parts-makers to come up with new products that are better than those of competitors and which give local cars an advantage.

“If I was setting up a parts business I would look for technology that would give me a product no-one else has,” said Mr Filazzola. “If you have that, you’ve got a selling point.”

Mr Parkin agreed it was about differentiation: “I think technology is a key differentiator. And being able to introduce that, not only in this market, but then be able to export it to other markets and have a product that’s unique, that’s a good business.”

Mr Filazzola said that, while some contracts had been awarded to offshore suppliers, the local industry was not feeling the full competitive pressure from China.

“The Chinese supplier base is very dedicated. They are hungry for the business. When they say they are going to do something, they actually do it.

“They put in infrastructure, they put in people and they have a lot of capital backing. They are very dedicated and they want to grow.”

But, with a market that grew 38 per cent in 2010, they are busy at home.

“To be honest, I had a hard time getting suppliers to export because there is so much domestic growth in China,” he said.

“They would pretty much knock it back. They didn’t want to grow outside China; they wanted to grow in China.

“Don’t run around thinking the Chinese are going to take away our business. They aren’t. They have so much work there, there really is no motivation for them to export.”

[BrisVegas]

Originally Posted by vztrt

....
But, with a market that grew 38 per cent in 2010, they are busy at home.

“To be honest, I had a hard time getting suppliers to export because there is so much domestic growth in China,” he said.

“They would pretty much knock it back. They didn’t want to grow outside China; they wanted to grow in China.

“Don’t run around thinking the Chinese are going to take away our business. They aren’t. They have so much work there, there really is no motivation for them to export.”

That's something that I wouldn't have considered. But he makes a good point. The guy's been living there for 4 years too, so i guess he has a pretty good read on things.

[vztrt]

http://www.autoblog.com/2011/07/18/g...g-328-million/

GM will build next-gen pickups in Flint, investing $328 million
By Zach Bowman
Jul 18th 2011 4:32PM

General Motors has announced that it will invest $328 million in its Flint, Michigan assembly plant to produce its next-generation GMC and Chevrolet full-size pickup trucks. Those trucks are currently manufactured in Silao, Mexico, and were built in Oshawa, Canada before that. The Flint Assembly Plant already builds the heavy-duty versions of the Chevrolet Silverado and GMC Sierra, and adding the light-duty pickups to the mix will put all of GM's trucks under one roof.

The investment is part of a $2 billion plan that the automaker says will create or retain 4,000 jobs across 17 facilities over the next year and a half. Flint will enjoy around 150 of those positions.

GM has seen its share of the full-size pickup truck market increase from 37.7 percent in the first five months of last year to 40.4 percent over the same period of time in 2011. The next-generation Silverado and Sierra are slated to hit the market in 2013, complete with better fuel economy.

PRESS RELEASE

GM Invests $328 Million in Flint Assembly Plant

Investment supports next-generation full-size pickups and creates or retains 150 jobs

2011-07-18

FLINT, Mich. – General Motors will invest $328 million to prepare its plant in Flint, Mich. to build the next generation of Chevrolet and GMC full-size pickup trucks, creating or retaining 150 jobs.

The plant, which currently has 2,047 employees, builds the hot-selling heavy-duty versions of the Chevrolet Silverado and GMC Sierra. Sales of the new-for-2011 trucks have led to an additional 2.4 percentage points of market share (through May), bringing GM's total HD share to 36 percent.

"This investment will allow us to continue building award-winning full-size pickups that offer better fuel efficiency than ever before without sacrificing features and functionality," said Cathy Clegg, GM vice president of Labor Relations. "We remain committed to providing customers the utility and capability of our world-class full-size pickups."

GM's retail share of the full-size pickup market has grown to 40.4 percent through May compared with 37.7 percent in the first five months of 2010.

"Truck sales play an important role in the success of General Motors," said Joe Ashton, UAW-GM Vice President. "We are confident that the next-generation of trucks will continue to be an important source of revenue for the company and jobs for our members. Our members are ready to use their abundant talents to build high-quality trucks that deliver exceptional value to our customers."

The investment announced Monday is part of $2 billion GM is spending that will create or retain about 4,000 jobs in 17 facilities in eight states over the next 18 months.

Michigan has been a major beneficiary in the current round of investments, designated for $744 million. The Flint Engine, Bay City Powertrain, Detroit-Hamtramck Assembly, Lansing Grand River Assembly, Saginaw Powertrain and GM Components Holdings in Wyoming, Mich., all were designated for manufacturing investment along with a $130 million Data Center on its Warren, Mich. Technical Center campus.

[mytgxl]

Originally Posted by FPV8U

Just means instead of 6.0L Pushrods they would have 1.4L's from Kia New VE SSV Series II 140kw of Korean Muscle :

In all seriousness i think their future will depend on who decides to buy them..

hahahaha love it!

[vztrt]

http://www.autoblog.com/2011/07/20/c...ar-best-in-10/

Chevy sells 2.35M vehicles in first half of the year, best in 100 years

By Zach Bowman
Jul 20th 2011 3:31PM

General Motors has announced that Chevrolet managed to sell a total of 2.35 million vehicles across 120 countries in the first half of 2011, marking the best half-year in the company's history. That figure marks an increase of 286,499 vehicles over the same period last year thanks to record sales in countries like Argentina, Brazil, Chile, China, Columbia, Denmark, Ecuador, France, South Africa and Turkey. The automaker also says that the swell is due in part to sales increases across its top five markets. Those include the U.S., Brazil, China, Russia and Canada. In other words, sales are up... pretty much everywhere.

Russia saw the greatest increase with its Chevrolet sales up 54 percent compared to the same time period in 2010. General Motors attributes the increase to a wave of new models that include the Cruze, Spark, Sonic/Aveo and the Orlando. All told, the company managed to move a staggering 330,000 Cruze models in the first six months of 2011, globally, which is a 132-percent increase over last year. Since the company has sold nearly 800,000 Cruze units since the model's debut in 2009, Chevrolet expects to break the 1 million unit barrier by the end of this year. Hit the jump for the press release.

PRESS RELEASE

Chevrolet 2.35 Million First-Half Global Sales Sets Record

14 percent growth fueled by successful new models, including the Chevrolet Cruze

2011-07-20

DETROIT – Chevrolet sold 2.35 million vehicles globally in the first six months of 2011, the best half-year performance in Chevrolet's 100-year history.

"Founded in the United States by a Swiss émigré, Chevrolet was created with a global focus," said Joel Ewanick, GM global chief marketing officer. "One hundred years later, Louis Chevrolet's roots continue to shape our company, and enable Chevrolet to offer great products and service to customers in more than 120 countries around the world. We will continue to work at bringing new customers to the Chevy family – no matter where they live."

Chevrolet sold 286,499 more vehicles in the first half of 2011 than the same time period of 2010, a 14-percent increase year over year. In addition, Chevrolet set record first-half sales in many countries, including Argentina, Brazil, Chile, China, Colombia, Denmark, Ecuador, France, South Africa, and Turkey.
For the first half of 2011, Chevrolet recorded sales gains in all of its top five markets, including:
The United States, where sales are up 16 percent following nine consecutive months of year-over-year sales increases.

Brazil, where sales are up 0.4 percent over the best-ever-sales pace set in 2010

China, where sales climbed 15 percent to set the brand's best first-half results ever

Russia, where sales were up 54 percent as the brand continues to be the best-selling global brand in the country

Canada, where sales climbed 8 percent, and have more than doubled the pace of industry growth for the past 18 months

The potential for Chevrolet's continued growth is demonstrated in the emerging markets of Brazil, Russia and China. Chevrolet's combined sales strength in the "BRIC" countries, including India, is unmatched.

Much of Chevrolet's global growth can be attributed to the wave of new models, such as the Chevrolet Cruze compact car, Spark mini car, all-new Aveo/Sonic small car, and Orlando MPV. They will soon be joined globally by the all-new Chevrolet Malibu midsize car, and the all-new Colorado compact pickup, which will go on sale later this year.

Chevrolet sold more than 330,000 Cruzes worldwide during the first half of 2011, a 132-percent increase over the same time period a year ago. Much of that growth came in China and the United States, where Cruze was the best-selling passenger car in the country in June. Since introduction in early 2009, Cruze has sold more than 800,000 units worldwide and is on track to exceed 1 million before the end of 2012.
"The success of the Cruze illustrates what is possible when you listen to your customers," said Mary Barra, senior vice president, GM Global Product Development. "By offering drivers more than they expected in a compact car, the Cruze has redefined the global segment and is on track to bring a million new customers to Chevrolet. We are applying that same customer-focused approach to all of our global introductions, including Orlando, Colorado, Malibu, Spark, and Aveo/Sonic."

Chevrolet sold more than 220,000 Spark minicars worldwide since it was introduced in December 2009. That includes more than 100,000 Sparks sold during the first half of 2011 – a 110 percent gain over a year ago – driven primarily by consumer demand in South Korea, Mexico, and Uzbekistan.
Chevrolet sold more than 150,000 Aveo compact cars in the first half of 2011, including the all-new Aveo, which will be called the Sonic in some markets. Introduced in South Korea in March, the new Aveo/Sonic is currently on sale in nearly 30 countries.

[vztrt]

http://www.autoblog.com/2011/08/04/g...f-2-5-billion/

GM announces Q2 net income of $2.5 billion

By Zach Bowman RSS feed
Aug 4th 2011 10:58AM

General Motors has just announced the company's financial results for the second quarter of 2011. The automaker enjoyed its sixth consecutive quarter of profitable operation with a net income of $2.5 billion. That's an increase of 89 percent over the same period in 2010, when GM brought in $1.3 billion. Total revenue also increased over Q2 2010, up $6.2 billion to $39.4 billion. The company also reported that its EBIT adjusted was $3 billion compared to $2 billion last year. According to Dan Akerson, GM chairman and CEO, the improvements are thanks to the automaker's focus on fuel-efficient and well-designed vehicle.

It's true that the Chevrolet Cruze has seen significant success here in the U.S. over the past few months, and that momentum doesn't look to slow down anytime soon. With Chevrolet set to launch the company's new Sonic compact car as well as the redesigned Malibu, GM will be set to make advances two profitable segments throughout the remainder of the year.

PRESS RELEASE
GM Net Income Increases 89 percent to $2.5 Billion

Net income of $1.54 per share; EBIT of $3.0 billion

2011-08-04
DETROIT – General Motors Co. (NYSE: GM) today announced second quarter net income attributable to common stockholders of $2.5 billion, or $1.54 per fully-diluted share, marking the company's sixth consecutive profitable quarter. In the second quarter of 2010, GM's net income attributable to common stockholders was $1.3 billion, or 85 cents per fully-diluted share.

Revenue increased $6.2 billion to $39.4 billion, compared with the second quarter of 2010. Earnings before interest and tax (EBIT) adjusted was $3.0 billion compared with $2.0 billion in the second quarter of 2010. There were no special items in either period.

"GM's investments in fuel economy, design and quality are paying off around the world as our global market share growth and financial results bear out," said Dan Akerson, chairman and CEO. "Our progress has been steady and we're preparing to launch more new products this year, including the Chevrolet Sonic in North America, the Opel/Vauxhall Zafira in Europe and the Baojun 630 in China to keep the momentum going."

GM North America (GMNA) reported EBIT-adjusted of $2.2 billion, an improvement of $0.6 billion compared with the second quarter of 2010.

GM Europe (GME) reported EBIT-adjusted of $0.1 billion, an improvement of $0.3 billion compared with the second quarter of 2010. In the second quarter of 2011, GME incurred restructuring costs of approximately $100 million which was approximately $200 million less than in the second quarter of 2010.

GM International Operations (GMIO) reported EBIT-adjusted of $0.6 billion, up $0.1 billion from the second quarter of 2010.

GM South America (GMSA) reported EBIT-adjusted of $0.1 billion, down $0.1 billion from the second quarter of 2010.

For the quarter, automotive cash flow from operating activities was $5.0 billion and automotive free cash flow was $3.8 billion.

GM ended the quarter with very strong total automotive liquidity of $39.7 billion. Automotive cash and marketable securities, including Canadian Health Care Trust restricted cash, was $33.8 billion compared with $30.6 billion at the end of the first quarter of 2011.

Based on current industry outlook, the company expects that EBIT-adjusted in the second half of 2011 will be modestly lower than in the first half and that its full-year 2011 EBIT-adjusted will show solid improvement over 2010

"Our earnings and cash flow are solid and we're going to keep working on the fundamentals of strong brands, great products and operating leverage to create profitable growth around the world," said Dan Ammann, senior vice president and CFO.

[vztrt]

GM claims global number one slot from Toyota in H1

http://www.goauto.com.au/mellor/mell...2578E30026BD85

GM sales, profits streak ahead of quake-stricken Toyota but VW is close behind

5 August 2011

By HAITHAM RAZAGUI

GENERAL Motors has placed its beach towel on the sun-lounger labelled ‘world’s largest auto-maker,’ having delivered 4,536,000 vehicles in the first half of this year.

That’s 1.16 million more deliveries than achieved by earthquake-stricken Toyota and 446,000 more than pretender to the throne Volkswagen Group.

Barring an unforseen disaster for GM, the company now looks certain to regain supremacy of the global automotive industry for the first time since 2007 when Toyota equalled its record sales volume of 9.37 million units before taking the lead during the GFC and GM’s Chapter 11 bankruptcy.

GM’s increased sales have helped it to record a second-quarter net income of $US2.5 billion on the back of revenues totalling $US39.4 billion. Total net income for the first half of the year now stands at $5.4 billion.

GM chairman and CEO Dan Akerson attributed the company’s success to its “investments in fuel economy, design and quality”.

“Our progress has been steady and we’re preparing to launch more new products this year, including the Chevrolet Sonic in North America, the Opel/Vauxhall Zafira in Europe and the Baojun 630 in China to keep the momentum going,” he said.

It is the sixth consecutive quarterly profit for GM since it emerged from Chapter 11 bankruptcy in July 2009. Its first profit as a re-born company – of $US865 million – was recorded in the first quarter of 2010 before it floated in November last year, raising more than $US20 billion in investment.


However, GM predicts income for the second half of 2011 will be “modestly lower” than the first half, meaning there is everything to play for if it is going to maintain its lead over ambitious VW – which believes it can “perform better than the global automobile market during the second half of the year”.

VW – which has a target of selling 10 million vehicles per year by 2018 – has stated its intention to “keep our deliveries during the second half of the year at a high level”.

Meanwhile, Toyota has managed to scrape together a net income of 1.1 billion yen (just under $US14 million) during the first quarter of its 2012 financial year (equivalent to the second quarter of the calendar year) amid the disruption caused by the March 11 earthquake and tsunami.

For comparison, Toyota’s result for the corresponding period last year was 190.4 billion yen ($US2.42 billion).

However Toyota – like its automotive industry compatriots – has recovered from the natural disaster more quickly than anticipated, prompting the Japanese giant to revise its vehicle sales forecast for the full financial year (ending March 31 2012) from 7.24 million units up to 7.6 million, a five per cent increase but still lower than its GFC-addled figure of 7.8 million for the 2009 calendar year.

It has commensurately revised its FY2012 income forecast to 390 billion yen ($US4.95 billion), an increase of 110 billion yen.

The strength of the yen against major currencies like the US dollar means money earned in Toyota’s overseas markets is worth less once it is returned to Japan, further squeezing profits.

Toyota Motor Corporation senior managing officer Takahiko Ijichi said the company “remains committed to pursuing an improvement of its earnings structure globally through cost reduction activities in which it has strong track record, and to utilising every opportunity to increase production and sales outlook”.

As GoAuto has reported, Toyota plans to produce an extra 350,000 vehicles between October and next March to “make up for production lost to the disaster and its after effects”.

Once production normality has resumed for Toyota, 2012 will be the year to see whether other top manufacturers like Volkswagen, Hyundai-Kia and the Renault-Nissan alliance have successfully used the earthquake as an opportunity to secure a larger market share slice and drive a lasting wedge between Toyota and the top spot it last year clung onto by just over 28,000 units.

[vztrt]

http://www.autoblog.com/2011/08/05/g...ota-thanks-to/

GM retakes World's Largest Automaker title from Toyota thanks to quake
By Zach Bowman RSS feed
Aug 5th 2011 11:31AM

Bloomberg is reporting that General Motors has taken back the crown as the world's largest automaker. The Detroit-based company outsold Toyota through the first six months of 2011, thanks largely to the manufacturer's production shortages brought on by this year's earthquake and tsunami disaster in Japan. GM sold a total of 4.536 million units worldwide through June 30, Volkswagen moved 4.13 million vehicles, while Toyota numbers fell to 4.13 million units. Bloomberg reports that production at the company's Toyota City facility plummeted by 23 percent after a full production stop following the March earthquake.

Even so, Toyota says that it plans to institute an aggressive production recovery period during September, one month ahead of schedule, to help satiate demand. Those efforts still might not be enough to put the Japanese automaker ahead of Volkswagen through the remainder of 2011, however. Analysts say that's due to the simple logistics of delivering vehicles from their production facilities to the dealerships that need them most.

News Source: Bloomberg

[vztrt]

http://www.autoblog.com/2011/08/09/g...gines-in-half/

GM to cut number of vehicle platforms, engines in half
By Damon Lavrinc RSS feed
Aug 9th 2011 3:28PM

General Motors has announced plans to cut the number of global vehicle platforms by more than half over the course of the next seven years in an attempt to reduce costs and complexity.

The news came out of GM's long-term sustainability presentation at the automaker's 2nd annual Global Business Conference where Chairman and CEO Dan Akerson addressed investors and analysts.

According to reports from the ground, Akerson and GM's senior vice president of global product development, Mary Barra, explained that the automaker intends to reduce the number of car and truck platforms from 30 to 14 by 2018.

Akerson said in a pre-released statement that, "To reach a higher level of performance – for our customers and stockholders – we are accelerating our efforts to simplify and strengthen our processes to improve efficiencies and achieve our vision, which is to design, build and sell the world's best vehicles."

The plan is for GM's "core" architectures to comprise over 90 percent of the automaker's vehicles (up from 31 percent last year) and to be used on a global scale for high-volume products. Additionally, the number of engine variants will also be reduced from 18 to around 10 by 2018, and combined with new developmental standardization, GM can get new products into showrooms quicker while improving quality in the process.

GM estimates that inefficiencies in its product development cycle, namely cancelled programs, engineering reassignments and late changes to vehicles – something GM calls "churn" – account for nearly $1 billion in lost profits. Annually.

News Source: GM, Autoweek

[Bossxr8]

Say goodbye to Commodores Zeta platform.

[janddbone]

I think Zeta will stay, but we will soon find out!