Toyota ain't 'American'
BY Daniel Howes
Here we go again. Toyota Motor Corp. is poised to open its San Antonio pick up plant, so we're being fed this tiresome line that Japan's No. 1 automaker is really an "American company" because it a) directly employs some 30,000-plus in the United States and b) indirectly provides jobs to tens-of-thousands more and c) is preparing to run in NASCAR.
Don't care. Unless and until the boys in Aichi Prefecture pick up and move their HQ here and list their shares as domestic shares on the New York Stock Exchange, Toyota ... now read these words slowly and clearly ... will not be an American company. Period.
That said, a few qualifiers. Toyota is the best automotive operator in the business. Toyota is the standard everyone else wants to emulate
Toyota is a cash machine, thanks in large part to American cash. And Toyota is on track to become the world's largest automaker, sooner than General Motors Corp. would care to admit.
But Toyota is also wrestling with dodgy quality, having recalled more cars and trucks from the American market than any other major manufacturer. It's having trouble staffing growth, which may be contributing to its quality issues.
Don't begrudge Toyota its success. But please don't call it an "American company" because it isn't. All the NASCAR races and Texas truck plants they can muster don't make it so. They just change the subject.
Thursday, December 28, 2006
The Truth
Ford and General Motors have taken turns besting the Toyota Camry in quality surveys for the past two years, but if you talk to many Americans -- especially the ones who would never consider supporting home-based auto companies -- you'd never know it.
Last year, the Chevrolet Impala beat the Camry in initial quality, according to J.D. Power & Associates. And Consumer Reports just announced that both the Ford Fusion and Mercury Milan scored higher than both the Camry and the Honda Accord this year.
After the announcement, Ford's Director of Global Quality Debbe Yeager, referring to the struggle American companies have had overcoming the perceived and seemingly untarnishable reputation of their foreign rivals, commented: "It's a perception gap."
Even as GM and Ford have accumulated award after award on vehicle quality, you'd almost never know about such quality gains made by American companies.
The re's also the mythical perception that foreign automakers produce the most fuel efficient cars and that Detroit only makes gas-guzzlers when the truth is that all automakers -- including Toyota, Honda and Hyundai-Kia alike -- have allowed fuel economy to slide in the past 20 years since they all now sell bigger trucks and more SUVs.
Perhaps the biggest perception problem is that American automobile companies GM and Ford -- Chrysler is now German-owned -- squander all their money on plants overseas and foreign automakers build their factories in the United States. Foreign car lovers will surely point to Kia's plans to build its first-ever U.S. plant in Georgia, but they probably won't mention that they received $400 million in tax giveaways to do it, which translates into $160,000 per job.
Among the many benefits for the foreign-owned company, your tax dollars are going to be used for road improvements surrounding the complex, complete with flower beds and other beautification features. Hey, as long as we're going to allow states to bid for private jobs with our public tax dollars, we might as well make it look good, right?
And the foreign car lovers will probably also not tell you (or maybe they just don't know or don't want you to know) that GM and Ford pour more money into existing American facilities than foreign automakers spend on new plants, usually with little or no tax breaks. GM has already spent more than $500 million upgrading two transmission plants this year, and has spent nearly a billion dollars over the last decade, for example, for facility upgrades in Texas.
And what do GM and Ford get for making their existing plants more efficient? It isn't tax breaks. Instead, they get accusations of not being "competitive" enough! Maybe here I should also mention that the average domestic parts content for Kia is 3 percent, while the average domestic parts content of Ford and GM is 78 percent and 74 percent, respectively. This means that buying a U.S.-assembled (or even foreign-assembled, for that matter) GM or Ford supports more American jobs than a U.S.-assembled car or truck with a foreign nameplate.
Fortunately for our benefit, the United States remains the overall global leader in research and development, and a big reason for that is that American automakers. According to the Level Field Institute, U.S. car companies invest $16 billion in research and development annually, outpacing any other industry one could name.
Admittedly, the Level Field Institute counts German-owned DaimlerChrysler as an American automaker, so Ford and GM's combined R&D contribution to America is closer to around $12 billion. But who's counting, right? Certainly not the American auto-bashing media.
Japanese companies do employ 3,600 American workers in R&D, but that still leaves the foreign competition behind in the dust staring at American rear bumpers -- 3,600 sounds like a big number until you realize that 65,000 Americans work in R&D facilities in the state of Michigan alone. In fact, two of the top four R&D spending companies in America as reported by the Wall Street Journal are -- you guessed it -- Ford and GM. The other two are also American companies: Pfizer and Microsoft.
Ford has recently made headlines as the American automaker with the most challenges to its future, but these challenges certainly are not because they "aren't making cars people want to buy." Toyota did outsell Ford in July, but since then, Ford has reclaimed the No. 2 spot.
GM has the highest market share, increasing over 2 percentage points from a year ago, so it apparently can't be accused of not making cars people want to buy either. Ford sales also are up in Europe, and Ford doubled its sales in China, where GM has the highest market share of any automaker.
GM also reported a 3.9 percent rise in August vehicle sales despite high gas prices and a supposedly slowing economy. And even though Toyota reported record sales that month, it couldn't match the non-record setting sales volume of Ford. GM's sales rose 17 percent in October from the year-ago month and Ford sales rose 8 percent the same period.
And for all the talk about the lack of fuel efficiency of American automakers, it seems three-fourths of all automakers failed to meet Europe's improved fuel-efficiency standards intended to cut carbon-dioxide emissions. Japanese and German automakers topped the list of the study's worst performers, but according to an environmental group's study, GM's Opel division and Ford both "come out well."
In closing, I'll leave some encouraging numbers for those of us who actually like to root for and support the home team. The J.D. Power 2006 Vehicle Dependability Survey reports that Mercury, Buick and Cadillac (in that order) grabbed the No. 2, 3 and 4 spots to beat Toyota, Honda, Nissan, BMW and everyone else (except Lexus) in having the least number of problems per 100 vehicles.
Perhaps someday the American media will give GM and Ford the credit they deserve. And once they do, perception among the majority of the American public will rightfully change. GM and Ford aren't only doing what they should to make gains in the American market to deserve American consumer loyalty; they're also doing what they should to make gains in the markets of China, Europe and across most of the rest of the globe.
By Roger Simmermaker
Last year, the Chevrolet Impala beat the Camry in initial quality, according to J.D. Power & Associates. And Consumer Reports just announced that both the Ford Fusion and Mercury Milan scored higher than both the Camry and the Honda Accord this year.
After the announcement, Ford's Director of Global Quality Debbe Yeager, referring to the struggle American companies have had overcoming the perceived and seemingly untarnishable reputation of their foreign rivals, commented: "It's a perception gap."
Even as GM and Ford have accumulated award after award on vehicle quality, you'd almost never know about such quality gains made by American companies.
The re's also the mythical perception that foreign automakers produce the most fuel efficient cars and that Detroit only makes gas-guzzlers when the truth is that all automakers -- including Toyota, Honda and Hyundai-Kia alike -- have allowed fuel economy to slide in the past 20 years since they all now sell bigger trucks and more SUVs.
Perhaps the biggest perception problem is that American automobile companies GM and Ford -- Chrysler is now German-owned -- squander all their money on plants overseas and foreign automakers build their factories in the United States. Foreign car lovers will surely point to Kia's plans to build its first-ever U.S. plant in Georgia, but they probably won't mention that they received $400 million in tax giveaways to do it, which translates into $160,000 per job.
Among the many benefits for the foreign-owned company, your tax dollars are going to be used for road improvements surrounding the complex, complete with flower beds and other beautification features. Hey, as long as we're going to allow states to bid for private jobs with our public tax dollars, we might as well make it look good, right?
And the foreign car lovers will probably also not tell you (or maybe they just don't know or don't want you to know) that GM and Ford pour more money into existing American facilities than foreign automakers spend on new plants, usually with little or no tax breaks. GM has already spent more than $500 million upgrading two transmission plants this year, and has spent nearly a billion dollars over the last decade, for example, for facility upgrades in Texas.
And what do GM and Ford get for making their existing plants more efficient? It isn't tax breaks. Instead, they get accusations of not being "competitive" enough! Maybe here I should also mention that the average domestic parts content for Kia is 3 percent, while the average domestic parts content of Ford and GM is 78 percent and 74 percent, respectively. This means that buying a U.S.-assembled (or even foreign-assembled, for that matter) GM or Ford supports more American jobs than a U.S.-assembled car or truck with a foreign nameplate.
Fortunately for our benefit, the United States remains the overall global leader in research and development, and a big reason for that is that American automakers. According to the Level Field Institute, U.S. car companies invest $16 billion in research and development annually, outpacing any other industry one could name.
Admittedly, the Level Field Institute counts German-owned DaimlerChrysler as an American automaker, so Ford and GM's combined R&D contribution to America is closer to around $12 billion. But who's counting, right? Certainly not the American auto-bashing media.
Japanese companies do employ 3,600 American workers in R&D, but that still leaves the foreign competition behind in the dust staring at American rear bumpers -- 3,600 sounds like a big number until you realize that 65,000 Americans work in R&D facilities in the state of Michigan alone. In fact, two of the top four R&D spending companies in America as reported by the Wall Street Journal are -- you guessed it -- Ford and GM. The other two are also American companies: Pfizer and Microsoft.
Ford has recently made headlines as the American automaker with the most challenges to its future, but these challenges certainly are not because they "aren't making cars people want to buy." Toyota did outsell Ford in July, but since then, Ford has reclaimed the No. 2 spot.
GM has the highest market share, increasing over 2 percentage points from a year ago, so it apparently can't be accused of not making cars people want to buy either. Ford sales also are up in Europe, and Ford doubled its sales in China, where GM has the highest market share of any automaker.
GM also reported a 3.9 percent rise in August vehicle sales despite high gas prices and a supposedly slowing economy. And even though Toyota reported record sales that month, it couldn't match the non-record setting sales volume of Ford. GM's sales rose 17 percent in October from the year-ago month and Ford sales rose 8 percent the same period.
And for all the talk about the lack of fuel efficiency of American automakers, it seems three-fourths of all automakers failed to meet Europe's improved fuel-efficiency standards intended to cut carbon-dioxide emissions. Japanese and German automakers topped the list of the study's worst performers, but according to an environmental group's study, GM's Opel division and Ford both "come out well."
In closing, I'll leave some encouraging numbers for those of us who actually like to root for and support the home team. The J.D. Power 2006 Vehicle Dependability Survey reports that Mercury, Buick and Cadillac (in that order) grabbed the No. 2, 3 and 4 spots to beat Toyota, Honda, Nissan, BMW and everyone else (except Lexus) in having the least number of problems per 100 vehicles.
Perhaps someday the American media will give GM and Ford the credit they deserve. And once they do, perception among the majority of the American public will rightfully change. GM and Ford aren't only doing what they should to make gains in the American market to deserve American consumer loyalty; they're also doing what they should to make gains in the markets of China, Europe and across most of the rest of the globe.
By Roger Simmermaker
Wednesday, December 20, 2006
1983 Chevrolet C-10
I saw this on a web site.
I have a 1983 Chevrolet C-10 pickup. I love it. It is a great truck. It has a 305 engine with an automatic transmission. It has an Edelbrock carb and Flowmaster dual exhaust. It has 63,000 original miles on it. It runs great!
I have a 1983 Chevrolet C-10 pickup. I love it. It is a great truck. It has a 305 engine with an automatic transmission. It has an Edelbrock carb and Flowmaster dual exhaust. It has 63,000 original miles on it. It runs great!
Tuesday, December 19, 2006
2007 Motor Trend Truck of the Year: The Chevy Silverado
Chevy Silverado named 2007 Motor Trend Truck of the Year
DETROIT, Mich. - Today, Motor Trend magazine bestowed its prestigious "Truck of the Year" award on the all-new 2007 Chevy Silverado.
"We feel the new Silverado represents the best of the best in the competitive pickup truck segment," said Ed Peper, Chevrolet general manager. "Years of work have gone into every element of this vehicle. It's great to receive this recognition from such a respected publication. It provides great reinforcement and encouragement for our entire Chevy team, and our employees from our design studios to engineering centers, and assembly plants to dealerships - this is a great win."
This is the third time since 1999 the Silverado has received this coveted award, making it the only three-time winner in the 18-year history of the award.
"This firmly establishes Silverado in the leadership position among all pickups," Peper added.
The all-new truck incorporates new exterior and interior designs, powertrain, chassis and safety systems. The fourth generation of the legendary small-block V-8 engine family is the power behind the new pickup, delivering segment-leading horsepower and fuel economy. This makes it the only full-size pickup with over 300 hp and a combined fuel economy rating of more than 20 mpg. Silverado also offers the widest range of truck configurations with three cab sizes, three bed lengths and two distinct interiors to fit every customer's needs.
Motor Trend Editor In Chief Angus MacKenzie praised the new Silverado for offering "...traditional values people want in a pick-up - it's rugged, durable and versatile, but it's also stylish and comfortable...and it's done a great job in maintaining the Silverado's reputation for value."
As the new truck hits the market, customers are responding. Silverado, already the top-selling Chevrolet model, saw its sales increase 18% in November over the same month last year, and that trend is expected to grow as the new trucks fully penetrate the market. This will keep Chevy's 4,100 dealers humming through the holiday season and into 2007.
DETROIT, Mich. - Today, Motor Trend magazine bestowed its prestigious "Truck of the Year" award on the all-new 2007 Chevy Silverado.
"We feel the new Silverado represents the best of the best in the competitive pickup truck segment," said Ed Peper, Chevrolet general manager. "Years of work have gone into every element of this vehicle. It's great to receive this recognition from such a respected publication. It provides great reinforcement and encouragement for our entire Chevy team, and our employees from our design studios to engineering centers, and assembly plants to dealerships - this is a great win."
This is the third time since 1999 the Silverado has received this coveted award, making it the only three-time winner in the 18-year history of the award.
"This firmly establishes Silverado in the leadership position among all pickups," Peper added.
The all-new truck incorporates new exterior and interior designs, powertrain, chassis and safety systems. The fourth generation of the legendary small-block V-8 engine family is the power behind the new pickup, delivering segment-leading horsepower and fuel economy. This makes it the only full-size pickup with over 300 hp and a combined fuel economy rating of more than 20 mpg. Silverado also offers the widest range of truck configurations with three cab sizes, three bed lengths and two distinct interiors to fit every customer's needs.
Motor Trend Editor In Chief Angus MacKenzie praised the new Silverado for offering "...traditional values people want in a pick-up - it's rugged, durable and versatile, but it's also stylish and comfortable...and it's done a great job in maintaining the Silverado's reputation for value."
As the new truck hits the market, customers are responding. Silverado, already the top-selling Chevrolet model, saw its sales increase 18% in November over the same month last year, and that trend is expected to grow as the new trucks fully penetrate the market. This will keep Chevy's 4,100 dealers humming through the holiday season and into 2007.
Get a free Saab
One Million Miles in a Saab? Get a New One from Saab - For Free
DETROIT — Convinced of the jet-like performance and endurance of its products, Saab Automobile USA is announcing that it will offer a free new Saab to any U.S. customer who covers the distance of one million miles (or more) in a Saab that he or she originally purchased new. The new Saab will come with the 100,000 mile/5 years GM Powertrain limited warranty and 3 years/36,000 miles no-charge scheduled maintenance, standard with every model in the 2007 Saab Automobile USA portfolio.
This announcement comes after Wisconsin resident and insurance salesman Peter Gilbert recently reached the one million milestone in a 1989 Edwardian Gray Saab 900 SPG, still with the original engine and turbo, at this year’s North American Saab Owners Convention in Lake George, N.Y. Saab Automobile USA General Manager Jay Spenchian was the very first to congratulate Gilbert and his 900 SPG on the occasion.
“Saabs are made for people who love to drive, as proven by the many high-mileage examples in the Saab owners’ community”, Spenchian said. “Having personally been with Peter Gilbert in his 900 SPG as we crossed their magical finish line together, one cannot help but being impressed by the condition of car and driver after one million miles. Our offer of a new Saab to any U.S. customer who equals this achievement, should be seen as a token of appreciation for the enduring loyalty and confidence in Saab.”
Mr. Gilbert will receive a brand new, 260 hp Saab 9-5 Aero (MSRP $ 38,735 ) as a worthy replacement for his tried-and-true 900 SPG. Delivery of the new car is to be scheduled in early 2007 at the Saab Aero Academy at Road Atlanta, Georgia. Saab is the only U.S. manufacturer offering this two-day enhanced driving course – a $1,350 value – at no cost to every U.S. customer who buys a new Saab 9-3 Aero or 9-5 Aero.
“I am obviously thrilled with the idea of being presented with a new Saab 9-5 Aero”, Gilbert said. “It is not just fast and fuel efficient, but also extremely safe. A reassuring thought, keeping in mind that my faithful 900 SPG and I survived many a collision with Wisconsin deer. Who knows, I might take a run at another million miles in my new 9-5! "
The offer of a free, new 2007 Saab 9-5 Aero [not to exceed the Manufacturers Suggested Retail Price of $38,735 (certain features and options are subject to availability at time of delivery) and delivery to take place at an authorized Saab USA dealer] valid from the date of this release through calendar year 2007 (offer ends Dec. 31, 11:59 p.m. Eastern Time), is available to any U.S. customer who can present verifiable proof to Saab Automobile USA that he or she is the original owner of the Saab vehicle that covered one million road miles or more, that the vehicle is in running condition, that the odometer hasn’t been tampered with, and that the vehicle is currently and has always been registered in the United States. The customer is responsible for all applicable taxes, title fees, registration and destination charges.
DETROIT — Convinced of the jet-like performance and endurance of its products, Saab Automobile USA is announcing that it will offer a free new Saab to any U.S. customer who covers the distance of one million miles (or more) in a Saab that he or she originally purchased new. The new Saab will come with the 100,000 mile/5 years GM Powertrain limited warranty and 3 years/36,000 miles no-charge scheduled maintenance, standard with every model in the 2007 Saab Automobile USA portfolio.
This announcement comes after Wisconsin resident and insurance salesman Peter Gilbert recently reached the one million milestone in a 1989 Edwardian Gray Saab 900 SPG, still with the original engine and turbo, at this year’s North American Saab Owners Convention in Lake George, N.Y. Saab Automobile USA General Manager Jay Spenchian was the very first to congratulate Gilbert and his 900 SPG on the occasion.
“Saabs are made for people who love to drive, as proven by the many high-mileage examples in the Saab owners’ community”, Spenchian said. “Having personally been with Peter Gilbert in his 900 SPG as we crossed their magical finish line together, one cannot help but being impressed by the condition of car and driver after one million miles. Our offer of a new Saab to any U.S. customer who equals this achievement, should be seen as a token of appreciation for the enduring loyalty and confidence in Saab.”
Mr. Gilbert will receive a brand new, 260 hp Saab 9-5 Aero (MSRP $ 38,735 ) as a worthy replacement for his tried-and-true 900 SPG. Delivery of the new car is to be scheduled in early 2007 at the Saab Aero Academy at Road Atlanta, Georgia. Saab is the only U.S. manufacturer offering this two-day enhanced driving course – a $1,350 value – at no cost to every U.S. customer who buys a new Saab 9-3 Aero or 9-5 Aero.
“I am obviously thrilled with the idea of being presented with a new Saab 9-5 Aero”, Gilbert said. “It is not just fast and fuel efficient, but also extremely safe. A reassuring thought, keeping in mind that my faithful 900 SPG and I survived many a collision with Wisconsin deer. Who knows, I might take a run at another million miles in my new 9-5! "
The offer of a free, new 2007 Saab 9-5 Aero [not to exceed the Manufacturers Suggested Retail Price of $38,735 (certain features and options are subject to availability at time of delivery) and delivery to take place at an authorized Saab USA dealer] valid from the date of this release through calendar year 2007 (offer ends Dec. 31, 11:59 p.m. Eastern Time), is available to any U.S. customer who can present verifiable proof to Saab Automobile USA that he or she is the original owner of the Saab vehicle that covered one million road miles or more, that the vehicle is in running condition, that the odometer hasn’t been tampered with, and that the vehicle is currently and has always been registered in the United States. The customer is responsible for all applicable taxes, title fees, registration and destination charges.
Cars of 2008: A Sneak Peek
Cars of 2008: A Sneak Peek
BusinessWeek Online
By Matt Vella
If there's one constant question in the auto industry, it's "what's next?" Every new model year creeps further and further onto the previous one's turf, with new vehicles now slated for introduction to the public up and down the calendar.
Automakers certainly haven't been shy about showing long-off product way ahead of time for numerous reasons: to ward off competition, to reassure investors, and to generate buzz. What's more, with a growing number of concept models being shown in nearly production-ready stages, getting a preview of what'll be on the road a year or so out has never been easier.
Now, in late 2006, as the bulk of 2007 models are just becoming available to consumers across the country, the industry already knows quite a bit about what 2008 has in store. Even a brief survey of some of that model year's announced vehicles confirms that various of this year's trends are likely to continue.
Emphasis on Efficiency
So, given the details that have already been tipped, what do we know about 2008? Look for an industry that continues to focus on: fuel efficiency and clean energy, excitement-generating low-volume vehicles, innovative new models aimed at new markets, and workhorse vehicles aimed to maintain financial momentum.
The explosion in popularity of gas-electric hybrids has not gone unnoticed, even if many industry veterans still harbor questions about the vehicles' true efficiency. What's certain is that the market leader, Toyota, isn't happy to sit still. It will continue pouring hybrid drive systems into new vehicles. Meanwhile, General Motors, the world's largest automaker, will no longer sit out the hybrid craze as of 2008.
Lexus, Toyota's successful luxury division, is finally going after the granddaddy of large luxury sedans, DaimlerChrysler's Mercedes-Benz S Class. The LS 600h L is intended as the company's new flagship, with more technological bells and whistles than imaginable.
Of course, the banner technology is a hybrid drive system like the one found in comparably plebian Prius cars. The LS should feature an engine that pumps out more than 400 horses as well as a plethora of techy gadgets to keep drivers and passengers occupied and safe.
Energy Trailblazers
GM is getting ready to bring on its own pack of hybrids.It's even putting its new two-mode system into huge SUVs like the GMC Yukon.
No word yet on the exact gas mileage this 2008 will get, but the company says to expect a 25% increase. If that's the case, it would mean the availability of a gigantic vehicle earning fuel economy of over 20 miles per gallon combined—quite a feat for such heavy vehicles that required thirsty V8 engines.
Some are even thinking beyond gasoline. Honda has always been a trailblazer in clean energy. After all, it — not Toyota—was the first Asian manufacturer to sell a fuel-sipping gas-electric hybrid to American consumers.
The Honda FCX, which debuted at the recent Los Angeles Auto Show, is the next big thing, or so Honda hopes. It is powered by a hydrogen fuel.
The company wowed green energy fans when it announced that it would begin selling a market-ready version of the model next year to Japanese customers. Like the second-generation Prius, the FCX's exterior adopts a futuristic look that suggests the advanced technology underhood
Cars of 2008: A Sneak Peek - Continued
Crazy for Convertibles
Other manufactures have deployed 2008s to generate excitement for variants available on the market right now. And there's nothing better to get the heart racing than a sexy drop top.
Chrysler's aging Sebring sedan, for one, was in desperate need of a refresh, which is exactly what it got earlier this year. But even the updated model drew one question from the lips of on-lookers: what about the convertible?
At the L.A. Auto Show, Chrysler answered those questions with a substantive sneak peek at the 2008 Chrysler Sebring Convertible. The car will be available with an optional hard top, the newest de rigueur feature in convertibles weighing in around $30,000.
Audi's TT sports car, meanwhile, was a stunner when it came out and a sales winner for the company. Now the brand has re-penned the car, giving it more aggressive lines in hopes of helping it compete with fare from the likes of Porsche. The 2008 model year roadster will be available with Audi's 3.2 liter V6 that pumps out a growling 250 horses.
Staying With Strong Markets
Another important trend in the 2008s already revealed is sustaining momentum. Notably, domestic manufacturers are hoping to predominate in markets that have traditionally been strong for them or ones in which their fortunes may be improving.
Ford built its brand on tough trucks, primarily the F-Series. And though Asian manufacturers like Honda, Toyota, and Nissan are trying to make incursions into the embattled domestic's territory, Ford is still the market leader for pickups. For now.
The company will introduce new version of the Super Duty series, an upsized and up-powered line, partly to maintain its edge and to further hone its rep. One model is slated to pack a torque-laden 6.4 liter, 350 horsepower diesel engine as well.
Saturn is on a roll. The company, long known for dowdy, plastic cars, is reshaping itself with the help of some striking new models, including a roadster, mainstream sedan, and large SUV-type crossover. For 2008, Saturn will launch a redesign of the smaller Vue SUV. Both the exterior and interior will be entirely redesigned to mesh with new models that sport aggressive and sexy styling.
Finding Customers
Perhaps the biggest trend in the 2008s the industry already knows about is prepping vehicles to acquire new segment customers. Manufacturers both foreign and domestic are banking on new models to help drive sales.
Buick's Enclave crossover, due as a 2008 model, will be based on General Motors' new Lambda platform and, therefore, will closely resemble sibling vehicles like the Saturn Outlook, GMC Acadia, and possibly a future Chevrolet product. The new product will reportedly take the place of the Rainier SUV and Terraza minivan, its seating, cargo capacity, and fuel economy making it a bridge between those two types of vehicles. Expect V6 and V8 engine options as well.
Land Rover is recasting its former Freelander small SUV as the LR2 to sell to Americans as a 2008. The new model adopts the geometric look of its larger siblings, the LR3 series. The model should carry a base price of around $35,000 and is intended to bring younger, less affluent buyers into the Land Rover fold.
Unlike previous incarnations, this model has improved ground clearance and is expected to provide better off-road capability, partially as a result. It will reportedly share its inline-6 engine with the newly unveiled Volvo S80.
Even with the gas crunch letting up a little and driving season winding down, small is in. The big news is that small is no longer the sole purview of economy cars. Audi made a big splash with its diminutive A3 at hatch that can be optioned up to cost more than $40,000. Volvo isn't happy to let Audi have all the turf. It's introducing the C30 hatchback in the U.S. as a 2008. Although it's small, the car sports a host of safety features that make it worthy to wear the Volvo brand name.
Go to BusinessWeek Online to view the slideshow
Vella is a reporter for BusinessWeek.com in New York.
BusinessWeek Online
By Matt Vella
If there's one constant question in the auto industry, it's "what's next?" Every new model year creeps further and further onto the previous one's turf, with new vehicles now slated for introduction to the public up and down the calendar.
Automakers certainly haven't been shy about showing long-off product way ahead of time for numerous reasons: to ward off competition, to reassure investors, and to generate buzz. What's more, with a growing number of concept models being shown in nearly production-ready stages, getting a preview of what'll be on the road a year or so out has never been easier.
Now, in late 2006, as the bulk of 2007 models are just becoming available to consumers across the country, the industry already knows quite a bit about what 2008 has in store. Even a brief survey of some of that model year's announced vehicles confirms that various of this year's trends are likely to continue.
Emphasis on Efficiency
So, given the details that have already been tipped, what do we know about 2008? Look for an industry that continues to focus on: fuel efficiency and clean energy, excitement-generating low-volume vehicles, innovative new models aimed at new markets, and workhorse vehicles aimed to maintain financial momentum.
The explosion in popularity of gas-electric hybrids has not gone unnoticed, even if many industry veterans still harbor questions about the vehicles' true efficiency. What's certain is that the market leader, Toyota, isn't happy to sit still. It will continue pouring hybrid drive systems into new vehicles. Meanwhile, General Motors, the world's largest automaker, will no longer sit out the hybrid craze as of 2008.
Lexus, Toyota's successful luxury division, is finally going after the granddaddy of large luxury sedans, DaimlerChrysler's Mercedes-Benz S Class. The LS 600h L is intended as the company's new flagship, with more technological bells and whistles than imaginable.
Of course, the banner technology is a hybrid drive system like the one found in comparably plebian Prius cars. The LS should feature an engine that pumps out more than 400 horses as well as a plethora of techy gadgets to keep drivers and passengers occupied and safe.
Energy Trailblazers
GM is getting ready to bring on its own pack of hybrids.It's even putting its new two-mode system into huge SUVs like the GMC Yukon.
No word yet on the exact gas mileage this 2008 will get, but the company says to expect a 25% increase. If that's the case, it would mean the availability of a gigantic vehicle earning fuel economy of over 20 miles per gallon combined—quite a feat for such heavy vehicles that required thirsty V8 engines.
Some are even thinking beyond gasoline. Honda has always been a trailblazer in clean energy. After all, it — not Toyota—was the first Asian manufacturer to sell a fuel-sipping gas-electric hybrid to American consumers.
The Honda FCX, which debuted at the recent Los Angeles Auto Show, is the next big thing, or so Honda hopes. It is powered by a hydrogen fuel.
The company wowed green energy fans when it announced that it would begin selling a market-ready version of the model next year to Japanese customers. Like the second-generation Prius, the FCX's exterior adopts a futuristic look that suggests the advanced technology underhood
Cars of 2008: A Sneak Peek - Continued
Crazy for Convertibles
Other manufactures have deployed 2008s to generate excitement for variants available on the market right now. And there's nothing better to get the heart racing than a sexy drop top.
Chrysler's aging Sebring sedan, for one, was in desperate need of a refresh, which is exactly what it got earlier this year. But even the updated model drew one question from the lips of on-lookers: what about the convertible?
At the L.A. Auto Show, Chrysler answered those questions with a substantive sneak peek at the 2008 Chrysler Sebring Convertible. The car will be available with an optional hard top, the newest de rigueur feature in convertibles weighing in around $30,000.
Audi's TT sports car, meanwhile, was a stunner when it came out and a sales winner for the company. Now the brand has re-penned the car, giving it more aggressive lines in hopes of helping it compete with fare from the likes of Porsche. The 2008 model year roadster will be available with Audi's 3.2 liter V6 that pumps out a growling 250 horses.
Staying With Strong Markets
Another important trend in the 2008s already revealed is sustaining momentum. Notably, domestic manufacturers are hoping to predominate in markets that have traditionally been strong for them or ones in which their fortunes may be improving.
Ford built its brand on tough trucks, primarily the F-Series. And though Asian manufacturers like Honda, Toyota, and Nissan are trying to make incursions into the embattled domestic's territory, Ford is still the market leader for pickups. For now.
The company will introduce new version of the Super Duty series, an upsized and up-powered line, partly to maintain its edge and to further hone its rep. One model is slated to pack a torque-laden 6.4 liter, 350 horsepower diesel engine as well.
Saturn is on a roll. The company, long known for dowdy, plastic cars, is reshaping itself with the help of some striking new models, including a roadster, mainstream sedan, and large SUV-type crossover. For 2008, Saturn will launch a redesign of the smaller Vue SUV. Both the exterior and interior will be entirely redesigned to mesh with new models that sport aggressive and sexy styling.
Finding Customers
Perhaps the biggest trend in the 2008s the industry already knows about is prepping vehicles to acquire new segment customers. Manufacturers both foreign and domestic are banking on new models to help drive sales.
Buick's Enclave crossover, due as a 2008 model, will be based on General Motors' new Lambda platform and, therefore, will closely resemble sibling vehicles like the Saturn Outlook, GMC Acadia, and possibly a future Chevrolet product. The new product will reportedly take the place of the Rainier SUV and Terraza minivan, its seating, cargo capacity, and fuel economy making it a bridge between those two types of vehicles. Expect V6 and V8 engine options as well.
Land Rover is recasting its former Freelander small SUV as the LR2 to sell to Americans as a 2008. The new model adopts the geometric look of its larger siblings, the LR3 series. The model should carry a base price of around $35,000 and is intended to bring younger, less affluent buyers into the Land Rover fold.
Unlike previous incarnations, this model has improved ground clearance and is expected to provide better off-road capability, partially as a result. It will reportedly share its inline-6 engine with the newly unveiled Volvo S80.
Even with the gas crunch letting up a little and driving season winding down, small is in. The big news is that small is no longer the sole purview of economy cars. Audi made a big splash with its diminutive A3 at hatch that can be optioned up to cost more than $40,000. Volvo isn't happy to let Audi have all the turf. It's introducing the C30 hatchback in the U.S. as a 2008. Although it's small, the car sports a host of safety features that make it worthy to wear the Volvo brand name.
Go to BusinessWeek Online to view the slideshow
Vella is a reporter for BusinessWeek.com in New York.
Do you want a spy in your car?
By Ian Dickson
October 06 2006
These days it’s virtually impossible not to be recorded on CCTV at some point throughout the day. When you bought your sandwich at lunchtime there’s a strong chance you were caught on camera, and you will again when you go out after work or go to the gym. In fact, today the average person has had their image taken about 300 times.
But it seems you can’t escape Big Brother when you climb behind the wheel of your car either. New black-box technology has allowed insurance company Norwich Union to keep track of where people drive and for how long under a new pay-as-you-drive insurance scheme. It started off as a trial period among 5,000 young motorists, but has proved so successful that it will now be offered as an alternative to conventional schemes.
However, there’s the controversial element that these black boxes can also record how fast motorists have been travelling, which could potentially incriminate thousands of people who creep over the speed limit on a daily basis. The question is, who has access to this information and, crucially, will the police be allowed to get their hands on it?
Nigel Humphries, a spokesman for the Association of British Drivers, is sceptical of such technology keeping tabs on drivers. He said: “We would hope that the data protection act would stop insurers passing any information on. But the last thing you want is insurance companies knowing where you are all the time. With pay-as-you-drive you haven’t got a predictable insurance scheme and there is the potential for insurers to rip you off. We don’t like the fact that insurance companies can monitor your speed either. This sort of spying is not the right way to go about it. Inevitably, we’re heading towards speed limiters and cars that are controlled externally.”
The police might not have to catch you speeding any more. Insurers could have a database full of evidence.The black box technology works like this: a device installed in your car tracks your movements and relays this information though to your insurer, who then bills you at the end of the month for every mile travelled. In principal, the idea is great. It’s cost effective and is priced to encourage motorists to drive at off-peak hours when they’re less likely to have an accident. As for recording speed, a Norwich Union spokesman stresses that any information will not be passed on except in extreme cases of dangerous driving when the police request it. He said: “Under no circumstances will we share information on speeding drivers. We don’t monitor speed.”
However, according to Norwich Union’s small print, information collected on drivers can be used against them. It said: “If approached, we will only provide information about you to those legally entitled to it, and where we are obliged to release it.” Time will tell exactly how much information insurers are allowed to release to the police about motorists who sign up to these pay-as-you-drive schemes, but road safety charity Brake welcomes the new insurance scheme, despite the civil liberty implications.
Get an insurance quote
A spokesperson said: “Pay as you drive insurance is a step in the right direction. We are pleased insurance companies are thinking about the safety of young drivers and discouraging them from driving at night which is when they are most likely to die on the road. The civil liberties question is a non issue particularly when the scheme is a voluntary one. As far as we are concerned the right to life is the most important of all and any scheme which seeks to protect it should be welcomed.”
Pay-as-you-drive insurance encourages young people to stay off the roads at night when they're more likely to have a fatal accidentOf course, whatever side of the fence you sit on, there’s no doubt that a lot of good can come out of an insurance scheme like this. Cheaper premiums for people who drive occasionally, the ability to track your car should it be stolen, and, hopefully, a reduction in the number of young people killed on the roads each year. Research conducted during the trial of the technology saw a 20% reduction in the number of young people killed or injured on the roads and a third sliced from the average insurance premium.
The costs certainly look appealing. On top of the one-off set-up fee – likely to be around £50 a month – the prices work on a sliding scale depending on your age and the time you drive. For 18 to 23-year-olds, they will pay £1 per mile when they travel between the twilight hours of 11pm and 6am – the time when most people of this age group are killed or injured. However, should they travel outside these ‘peak’ times they will only pay 5p per mile. Drivers aged 24 to 65 will pay about 1p per mile for off-peak motorway journeys, which will rise to 16p during peak times such as during the morning rush hour.
October 06 2006
These days it’s virtually impossible not to be recorded on CCTV at some point throughout the day. When you bought your sandwich at lunchtime there’s a strong chance you were caught on camera, and you will again when you go out after work or go to the gym. In fact, today the average person has had their image taken about 300 times.
But it seems you can’t escape Big Brother when you climb behind the wheel of your car either. New black-box technology has allowed insurance company Norwich Union to keep track of where people drive and for how long under a new pay-as-you-drive insurance scheme. It started off as a trial period among 5,000 young motorists, but has proved so successful that it will now be offered as an alternative to conventional schemes.
However, there’s the controversial element that these black boxes can also record how fast motorists have been travelling, which could potentially incriminate thousands of people who creep over the speed limit on a daily basis. The question is, who has access to this information and, crucially, will the police be allowed to get their hands on it?
Nigel Humphries, a spokesman for the Association of British Drivers, is sceptical of such technology keeping tabs on drivers. He said: “We would hope that the data protection act would stop insurers passing any information on. But the last thing you want is insurance companies knowing where you are all the time. With pay-as-you-drive you haven’t got a predictable insurance scheme and there is the potential for insurers to rip you off. We don’t like the fact that insurance companies can monitor your speed either. This sort of spying is not the right way to go about it. Inevitably, we’re heading towards speed limiters and cars that are controlled externally.”
The police might not have to catch you speeding any more. Insurers could have a database full of evidence.The black box technology works like this: a device installed in your car tracks your movements and relays this information though to your insurer, who then bills you at the end of the month for every mile travelled. In principal, the idea is great. It’s cost effective and is priced to encourage motorists to drive at off-peak hours when they’re less likely to have an accident. As for recording speed, a Norwich Union spokesman stresses that any information will not be passed on except in extreme cases of dangerous driving when the police request it. He said: “Under no circumstances will we share information on speeding drivers. We don’t monitor speed.”
However, according to Norwich Union’s small print, information collected on drivers can be used against them. It said: “If approached, we will only provide information about you to those legally entitled to it, and where we are obliged to release it.” Time will tell exactly how much information insurers are allowed to release to the police about motorists who sign up to these pay-as-you-drive schemes, but road safety charity Brake welcomes the new insurance scheme, despite the civil liberty implications.
Get an insurance quote
A spokesperson said: “Pay as you drive insurance is a step in the right direction. We are pleased insurance companies are thinking about the safety of young drivers and discouraging them from driving at night which is when they are most likely to die on the road. The civil liberties question is a non issue particularly when the scheme is a voluntary one. As far as we are concerned the right to life is the most important of all and any scheme which seeks to protect it should be welcomed.”
Pay-as-you-drive insurance encourages young people to stay off the roads at night when they're more likely to have a fatal accidentOf course, whatever side of the fence you sit on, there’s no doubt that a lot of good can come out of an insurance scheme like this. Cheaper premiums for people who drive occasionally, the ability to track your car should it be stolen, and, hopefully, a reduction in the number of young people killed on the roads each year. Research conducted during the trial of the technology saw a 20% reduction in the number of young people killed or injured on the roads and a third sliced from the average insurance premium.
The costs certainly look appealing. On top of the one-off set-up fee – likely to be around £50 a month – the prices work on a sliding scale depending on your age and the time you drive. For 18 to 23-year-olds, they will pay £1 per mile when they travel between the twilight hours of 11pm and 6am – the time when most people of this age group are killed or injured. However, should they travel outside these ‘peak’ times they will only pay 5p per mile. Drivers aged 24 to 65 will pay about 1p per mile for off-peak motorway journeys, which will rise to 16p during peak times such as during the morning rush hour.
A Toyota Trick
New Tundra will get old model year
New rules that will lower window-sticker fuel economy numbers on vehicles are already affecting carmakers' behavior, but perhaps not in the way regulators intended.
The new figures are intended to reflect real-world fuel economy more closely than today's fuel-economy ratings. Shoppers use the figures to compare vehicles' operating costs. Listed fuel economy rates are expected to fall 7% to 15% under the new standard.
To take advantage of higher miles per gallon results under the old testing procedures, Toyota Motor Corp.'s big new Tundra full-size pickup will be called a 2007 model when it debuts, despite the fact that none will reach dealerships until mid-February at the earliest.
Most new cars and trucks that go on sale after Jan. 1 will be called 2008 models, but Toyota decided it would rather have its new truck look a little old rather than explain the lower fuel economy numbers when it competed with pickups like the Chevrolet Silverado and Ford F-150 that were tested under the old standard.
There may be more than one way to skin this cat. Larry Lyons, Chrysler Group vice president of small vehicles, says window stickers may end up giving fuel economy numbers under both tests during a transition period.
Otherwise, automakers might have to explain why their fuel economy claims for two similar vehicles introduced a few months apart differed by several miles per gallon.
Monday, December 18, 2006
GM
General Motors
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This article is about the company. For the railway station, see General Motors railway station, Melbourne.
General Motors Corporation
Type Public (NYSE: GM)
Founded 1908
Headquarters Detroit, Michigan, USA
manufacturing facilities in 30 U.S. states and 33 countries
Key people Rick Wagoner, Chairman & CEO
Robert A. Lutz, Vice Chairman
Frederick Henderson, CFO
Industry Automotive
Products Automobiles
Engines
Revenue $192.604 Billion USD (2005)
Net income -$10.567 Billion USD (2005)
Employees 326,999 (2006)
Website www.gm.com
General Motors Corporation, also known as GM, is the world's largest automaker and has been since 1931. Founded in 1908, GM today employs about 326,999 people around the world. With global headquarters at the Renaissance Center in Detroit, Michigan, USA, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo (now sold under the Chevrolet and Suzuki brands in the United States, Europe and in some other countries), Holden, Hummer, Oldsmobile (now defunct), Opel, Pontiac, Saab, Saturn, Vauxhall. GM operates a finance company, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is a vehicle safety, security and information service provider.
GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea, and has product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. GM also has advanced technology collaborations with Toyota Motor Corporation of Japan, DaimlerChrysler AG and BMW AG of Germany, and vehicle manufacturing ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry Corporation of China, AutoVAZ and Avtotor of Russia and Renault SA of France.
GM Parts and accessories are sold under the GM, GM Performance Parts, GM Goodwrench and ACDelco brands through GM Service and Parts Operations, which supplies GM dealerships and distributors worldwide. GM engines and transmissions are marketed through GM Powertrain. GM's largest national market is the United States, followed by China, Canada, the United Kingdom, and Germany.
Contents
1 History
1.1 Renault-Nissan proposal
1.2 General Motors Hughes Electronics
2 Auto racing
3 Corporate structure and leadership
3.1 Chairmen of the Board of General Motors
3.2 Chief Executive Officers of General Motors
3.3 Presidents of General Motors
4 Corporate issues
4.1 Social policies
4.2 Environment and alternative vehicles
4.2.1 Hybrid initiative
4.2.2 Hydrogen initiative
4.3 Marketing
4.4 Economics
4.5 GM in China
4.6 Corporate restructuring
5 Controversy over electric vehicles
5.1 From General Motors
6 Further reading
7 See also
7.1 People
7.2 Books and Films
7.3 Brands
7.4 Other Related Topics
7.5 Subsidiaries
7.6 Categories
8 External links
8.1 Offical
8.2 Unofficial
9 References
History
The Renaissance Center in Detroit, Michigan, is General Motors' world headquartersGeneral Motors was founded in 1908 in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant, and acquired Oldsmobile later that year. The next year, Durant brought in Cadillac, Elmore, Oakland and several others. In 1909, General Motors acquired the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessor of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. Durant lost control of GM in 1910 to the company's bankers, because of the large amount of debt taken on in its acquisitions.
Durant left the firm and helped establish the Chevrolet Motor Company in 1912 with brothers Gaston and Louis Chevrolet. He returned to head GM in 1915, with financing by Pierre S. du Pont. Chevrolet entered the General Motors fold in 1916. Du Pont removed Durant from management in 1920, and various Du Pont interests held large or controlling share holdings until about 1950.
GM surpassed Ford Motor Company in the 1920s thanks to the leadership of Alfred Sloan. While Ford continued to refine the manufacturing process to reduce cost, Sloan was inventing new ways of managing a complex worldwide organization, while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model; they wanted style, power, and prestige, which GM offered them. Thanks to consumer financing, easy monthly payments allowed far more people to buy GM cars, while Ford was moralistically opposed to credit. During the 1920s and 1930s, General Motors bought out the Yellow Coach bus company, and helped create Greyhound bus lines. They replaced intercity train transport with buses, and established subsidiary companies to buy out streetcar companies and replace the rail-based services as well with buses. GM formed United Cities Motor Transit in 1932 (see General Motors streetcar conspiracy for additional details).
General Motors produced vast quantities of armaments, vehicles and even aircraft during World War II, and also had sizeable interests in Nazi Germany [1]. During the war, the U.S auto companies were concerned that the Nazis would nationalize American owned factories in Germany. In the spring of 1939, the Nazis had assumed day to day control of American owned factories in Germany, but decided against nationalizing them. GM's William P. Knudson served as head of U.S. wartime production for President Franklin Roosevelt who had referred to Detroit as the Arsenal of Democracy. Today, Detroit is the headquarters for the U.S. Army Tank-Automotive and Armaments Command, known as TACOM.
General Motors bought the internal combustion engined railcar builder Electro-Motive Corporation and its engine supplier Winton Engine in 1930, renaming both as the General Motors Electro-Motive Division. Over the next twenty years, diesel-powered locomotives — the majority built by GM — largely replaced other forms of traction on American railroads. (During World War II, these engines were also important in American submarines and destroyer escorts.) Electro-Motive was sold in early 2005.
At one point GM had become the largest corporation registered in the United States, in terms of its revenues as a percent of GDP. In 1953 Charles Erwin Wilson, then GM president, was named by Eisenhower as Secretary of Defense. When he was asked during the hearings before the Senate Armed Services Committee if as secretary of defense he could make a decision adverse to the interests of General Motors, Wilson answered affirmatively but added that he could not conceive of such a situation "because for years I thought what was good for the country was good for General Motors and vice versa". Later this statement was often misquoted, suggesting that Wilson had said simply, "What's good for General Motors is good for the country." At the time, GM was one of the largest employers in the world – only Soviet state industries employed more people. On December 31, 1955, General Motors became the first American corporation to make over one billion dollars in a year.
After GM's massive lay-offs hit Flint, Michigan, a strike began at the General Motors parts factory in Flint on June 5, 1998, which quickly spread to five other assembly plants and lasted seven weeks. Because of the significant role GM plays in the United States, the strikes and temporary idling of many plants noticably showed in national economic observations.
In the late 1990s, GM had regained market share; its stock had soared to over $80 a share by 2000. However, in 2001, the stock market drop following the September 11, 2001 attacks, combined with historic pension underfunding, caused a severe pension and benefit fund crisis at GM and many other American companies and the value of their pension funds plummeted. A weak U.S. dollar and private health care (as opposed to nationalized health care in other countries,) costs also put GM at a disadvantage to its Japanese, Korean, and European counterparts. In successive moves, GM responded to the crisis by fully funding its pension fund; however, its Other Post Employment Benefits Fund (OPEB) became a serious issue resulting in downgrades to its bond rating in 2005. The company expressed its disagreement with these bond rating downgrades. In 2006, GM responded by offering buyouts to hourly workers to reduce future liabilty; over 35,000 workers responded to the offer, well exceeding the company's goal. GM has gained higher rates of return on its benefit funds as a part of the solution. Stock value has begun to rebound - as of October 30, 2006 GM's market capitalization was about $19.19 billion.
Nevertheless, since 2000, GM has remained the world's largest auto maker, ranked according to sales. After oil company mergers, GM's rank changed to the 5th largest company in the United States and the world in terms of sales.
Renault-Nissan proposal
On June 30, 2006, Kirk Kerkorian, whose Tracinda Corporation is the third-largest shareholder of General Motors, proposed a global alliance between GM and the Renault & Nissan. Carlos Ghosn, the CEO of both Renault and Nissan expressed interest in possibly acquiring a stake in GM. GM held an emergency board meeting to examine Kerkorian's proposal; GM's board reaffirmed its support for CEO Rick Wagoner and GM's turnaround plans. On July 14, 2006, after a meeting with Carlos Ghosn, Rick Wagoner decided to study the matter for 90 days, including non-alliance forming ventures. On October 4 2006 the companies announced the end of the discussions about an alliance, determining "that significant aggregate synergies might result from the alliance" and "the parties did not agree on either the total amount of aggregate synergies or the distribution of those benefits."[2] On November 30th, 2006, Kerkorian's investment company, Tracinda Corp., dumped the last block of what was once a nearly 10 percent share of the world's largest automaker to Bank of America, a longtime lender to Kerkorian. Kerkorian helped install Tracinda adviser Jerome York, a former Chrysler Corp. executive, on the company's board of directors and successfully proposed the automaker cut its dividend in half. Kerkorian sold his entire remaining investment in GM — 28 million shares — at $29.95 a share, a transaction worth more than $800 million.[3]
General Motors Hughes Electronics
Main article: Hughes Electronics
GM Hughes Electronics was formed in 1985 when Hughes Aircraft was sold by the Howard Hughes Medical Institute to GM for $5 billion. GM merged Hughes Aircraft with its Delco Electronics unit to form GM Hughes Electronics (GMHE). This division was a major defense contractor, civilian space systems manufacturer and communications company. The defense business was sold to Raytheon in 1997 and the space and communications division was sold to Boeing in 2000.
Auto racing
General Motors has an extensive history in numerous forms of racing. Vehicles of most, if not all, of GM's brands have been represented in competition, with perhaps Chevrolet being the most prominent. In particular, the Chevrolet Corvette has long been popular and successful in international road racing. GM also is a supplier of racing components, such as engines, transmissions, and electronics. GM's Oldsmobile Aurora engine platform was successful in open-wheel Indy-style racing throughout the 1990s, winning many races in the small V-8 class. An unmodified Aurora V-8 in the Aerotech, captured 47 world records, including the record for speed endurance in the Motorsports Hall of Fame of America. Recently, the Cadillac V-Series has entered motorsports racing. GM has also used many cars in the American racing series NASCAR. Currently the Chevrolet Monte Carlo is the only entry in the series but in the past the Pontiac Grand Prix, Buick Regal, Oldsmobile Cutlass, Chevrolet Lumina, and Chevrolet Malibu were also used.
In touring cars (mainly in Europe) Vauxhall is a key player and former champion in the British Touring Car Championship (BTCC) series and competes with a Vauxhall Astra VXR in BTC spec. Opel is one of the three participants in the DTM series (along with Audi and Mercedes Benz) and is a former champion and competes with a unique 500 bhp vehicle that resmbles the Opel Vectra. Chevrolet competes with a Lacetti in the FIA World Touring Car Championship (WTCC).
In Australia, there is the prestigious V8 Supercar Championship which is battled out by the two main rivals in Holden& Ford. The current Holden Racing Team cars are based on the Holden Commodore and run a 5.0 Litre fuel-injected V8 producing 600+ BHP (approx 500Kw Power) @ 7500rpm. These cars have a top speed of 300 + km/h (200mph) and run 0-100km/h in less than 4 seconds.
In 2006, The Holden Racing Team again carried the mantle as Australia's most successful team in Australian Touring Car History.
Corporate structure and leadership
Current members of the board of directors of General Motors are: Percy Barnevik, Erskine Bowles, John Bryan, Armando Codina, George Fisher, Karen Katen, Kent Kresa, Ellen Kullman, Philip Laskawy, Eckhard Pfeiffer, and Rick Wagoner (chairman). Jerome York, who was elected to the board on February 6, 2006 to represent Kirk Kerkorian abrubptly resigned on October 6, 2006, following the decision by GM to break off talks about an alliance with Nissan and Renault.
Rick Wagoner is also the chief executive officer of the company (since June 1, 2000), succeeding John F. Smith, Jr.
Chairmen of the Board of General Motors
Chairmen of the Board of General Motors[4]
Thomas Neal Nov.19,1912 - Nov. 16, 1915
Pierre S. du Pont Nov.16,1915 - Feb. 7, 1929
Lammot du Pont Feb.7, 1929 - May 3, 1937
Alfred P. Sloan, Jr. May 3,1937 - April 2, 1956
Albert Bradley April 2, 1956 - Aug. 31, 1958
Frederic G. Donner Sept. 1, 1958 - Oct. 31, 1967
James M. Roche Nov. 1, 1967 - Dec. 31, 1971
Richard C. Gerstenberg Jan. 1, 1972 - Nov. 30, 1974
Thomas A. Murphy Dec. 1, 1974 - Dec. 31, 1980
Roger B. Smith Jan. 1, 1981 - July 31, 1990
Robert C. Stempel Aug. 1, 1990 - Nov. 1, 1992
John G. Smale Nov. 2, 1992 - Dec. 31, 1995
John F. Smith, Jr. Jan. 1, 1996 - April 30, 2003
G. Richard Wagoner, Jr. May 1, 2003 - Present
Chief Executive Officers of General Motors
Chief Executive Officers of General Motors[5]
Alfred P. Sloan, Jr. May 10, 1923 - June 3, 1946
Charles E. Wilson June 3, 1946 - Jan. 26, 1953
Harlow H. Curtice Feb. 2, 1953 - Aug. 31, 1958
Frederic G. Donner Sept. 1, 1958 - Oct. 31, 1967
James M. Roche Nov. 1, 1967 - Dec. 31, 1971
Richard C. Gerstenberg Jan. 1, 1972 - Nov. 30, 1974
Thomas A. Murphy Dec. 1, 1974 - Dec. 31, 1980
Roger B. Smith Jan. 1, 1981 - July 31, 1990
Robert C. Stempel Aug. 1, 1990 - Nov. 1, 1992
John F. Smith, Jr. Nov. 2, 1992 - May 31, 2000
G. Richard Wagoner, Jr. June 1, 2000 - Present
Presidents of General Motors
Presidents of General Motors [6]
George E. Daniels Sept. 22, 1908 - Oct. 20, 1908
William M. Eaton Oct. 20, 1908 - Nov. 23, 1910
James J. Storrow Nov. 23, 1910 - Jan. 26, 1911
Thomas Neal Jan. 26, 1911 - Nov. 19, 1912
Charles W. Nash Nov. 19, 1912 - June 1, 1916
William C. Durant June 1, 1916 - Nov. 30, 1920
Pierre S. du Pont Nov. 30, 1920 - May 10, 1923
Alfred P. Sloan, Jr. May 10, 1923 - May 3, 1937
William S. Knudsen May 3, 1937 - Sept. 3, 1940
Charles E. Wilson Jan. 6, 1941 - Jan. 26, 1953
Harlow H. Curtice Feb. 2, 1953 - Aug. 31, 1958
John F. Gordon Sept. 1, 1958 - May 31, 1965
James M. Roche June 1, 1965 - Oct. 31, 1967
Edward N. Cole Nov. 1, 1967 - Sept. 30, 1974
Elliott M. Estes Oct. 1, 1974 - Jan. 31, 1981
F. James McDonald Feb. 1, 1981 - Aug. 31, 1987
Robert C. Stempel Sept. 1, 1987 - July 31, 1990
Lloyd E. Reuss Aug. 1, 1990 - April 6, 1992
John F. Smith, Jr. April 6, 1992 - Oct. 5, 1998
G. Richard Wagoner, Jr. Oct. 5, 1998 - April 30, 2003
Corporate issues
Social policies
General Motors was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine. For example, GM has given millions of dollars in computers to colleges of Engineering through its PACE Awards program.
Environment and alternative vehicles
General Motors has long worked on alternative-technology vehicles, and has recently led the industry with clean burning Flex Fuel vehicles that can run on either E-85 (ethanol) or gasoline. The company was the first to use turbochargers and was an early proponent of V6 engines in the 1960s, but quickly lost interest as the muscle car race took hold. They demonstrated [1] gas turbine vehicles powered by kerosene, an area of interest throughout the industry in the late 1950s, but despite extensive thermal recycling (developed by Chrysler) the fuel consumption was too high and starting torque too low for everyday use. They were also an early licensee of Wankel engine technology, even developing the Chevrolet Monza around the powerplant, but abandoned the alternative engine configuration in view of the 1973 oil crisis. In the 1970s and 1980s, GM pushed Diesel engines and cylinder deactivation technologies to disastrous results due to poor durability in the Oldsmobile diesels (this was a modified gasoline engine) and drivability issues in the Cadillac 4-6-8 variable cylinder engines.
In 1996, GM introduced the EV1, the first modern mass-produced electric car, which was available by lease only (see below: Controversy over EV1). Despite the positive publicity generated by this vehicle, and a long waiting list for the cars, the company cancelled the program after only a tiny production run, reportedly due to a "lack of consumer interest". GM forced return of EV1 vehicles, even though some owners wanted to keep them. The story of GM's non-support for its own product is related in the 2006 documentary Who killed the electric car?.
[edit] Hybrid initiative
GM delivered the first commercial hybrid vehicle and was early innovator in hybrid vehicle development, building Diesel-electric trains since the 1930s (but without stored energy recovery) and buses since the 1990s. In May 2004, GM delivered the world's first full sized hybrid pickups, and introduced a hybrid passenger car. In 2005, the new Opel Astra Diesel Hybrid concept vehicle appears. The 2006 Saturn VUE Green Line will be the first hybrid passenger vehicle from GM, but it too is a mild design. GM has hinted at new hybrid technologies to be employed that will be optimized for higher speeds such as are encountered in freeway driving.
Hydrogen initiative
GM has prided its research and prototype development of hydrogen powered vehicles, to be produced in early 2010, using a support infrastructure still in a prototype state. The economic feasibility of the technically challenging hydrogen car, and the low-cost production of hydrogen to fuel it, has also been discussed by other automobile manufacturers such as Ford and Chrysler.
Marketing
Each of GM's automotive divisions were once each targeted to specific market segments and, despite some shared components, each distinguished itself from its stablemates with unique styling and (to some extent) technology. The shared components and common corporate management created substantial economies of scale, while the distinctions between the divisions created an orderly upgrade path, with an entry-level buyer starting out with a practical and economical Chevrolet and, (assuming progressive prosperity of the buyer), moving through offerings of the several divisions until the purchase of a Cadillac. The divisions were not competing with each other as much as passing along the same customer, who would thus always be buying a GM product, with the profits flowing to this single corporation.
The postwar industry became enamored with the concept of "planned obsolescence", implemented by both technical and styling innovations, with a three year product cycle typical within the industry. In this cycle, a new basic body shell is introduced and then modified for the next two years by minor styling changes. GM, Ford, and Chrysler competed vigorously in this new environment.
By 1958, the divisional distinctions began to blur, with the availability of high-performance engines in Chevrolets and Pontiacs, and the introduction of higher trim models such as the Chevrolet Impala and Pontiac Bonneville that were priced in line with some of Oldsmobile and Buick's offerings. By the time that Pontiac, Oldsmobile and Buick introduced similarly styled and priced compact models for 1961, the old "step-up" structure between the divisions was nearly over.
By the mid 1960s, most of GM's vehicles were built on a few common platforms and in the 1970s, began to use nearly identical body panel stampings, differing only in internal and external trim items. This was seen especially in the compact passenger vehicles offered by the divisions. Nonetheless, the 1960-75 period was perhaps the greatest in GM's history, as it eventually held slightly over 50% of the U.S. market.
The subcompact Chevrolet Vega, introduced for the 1971 model year damaged GM's reputation more than perhaps any other vehicle in its history. Plagued by rust problems and an aluminum engine that was prone to failure at low mileage, the car was not designed and built to the standards consumers expected from GM.
By the 1980s, GM frequently "rebadged" one division's successful vehicle into several models across the divisions, all positioned close to one another in the market place. Thus, a new GM model's main competition might be another model spawned off the same platform. This led to so-called market "cannibalization", where GM's respective divisions spent time stealing sales from one another, while other more co-ordinated efforts (notably from the Japanese manufacturers) were allowed to increase their market penetration. Even today, the company's GMT360 mid-sized light truck platform has, since its inception in 2002, spawned the basic Chevrolet Trailblazer, an extended version of the Trailblazer, the Oldsmobile Bravada, the GMC Envoy, the Envoy XUV (an extended Envoy with a reconfigurable tailgate) and later, the Isuzu Ascender, Buick Rainier, and, to a lesser extent, the Saab 9-7X. Though each model had a more or less unique mission, without custom engine choices or radically different suspension settings and trim choices, the cars can hardly be discerned from one another.
In the late 1990s, the U.S. economy was on the rise and GM and Ford gained market share producing enormous profits primarily from the sale of light trucks and sport-utility vehicles. From 2000 to 2001, the Federal Reserve, in a move to quell the stock market, made twelve successive interest rate increases. Following the September 11, 2001 attacks, a severe stock market decline magnified the effect of GM's history pension and benefit fund underfunding, precipitating a crisis. At the same time, this crisis happened at other U.S. companies with similar histories, such as Ford, DaimlerChrysler, and United Airlines. GM began its Keep America Rolling campaign, which boosted sales, and other auto makers were forced to follow suit. The U.S. automakers saw gross margins deteriorate.
In 2004, GM redirected resources from the development of new sedans to an accelerated refurbishment of their light trucks and SUVs for introduction as 2007 models in early 2006. Shortly after this decision, fuel prices increased by over 50% and this in turn affected both the trade-in value of used vehicles and the perceived desirability of new offerings in these market segments. The current marketing plan is currently to extensively tout these revised vehicles as offering the best fuel economies in their class (of vehicle). GM claims its hybrid trucks will have gas-mileage improvements of 25%, bettering the current fuel-economy leader, Toyota.
In the summer of 2005 GM announced that effective immediately, its corporate chrome emblem "Mark of Excellence" will begin appearing on all recently introduced and all-new 2006 model vehicles produced and sold in North America. The move is seen as an attempt by GM to link its name and vehicle brands more closely. The company's vehicle brands include Chevrolet, Pontiac, Buick, GMC, Cadillac, Saab, Hummer and Saturn.
GM promoted sales through an employee discount to all buyers. Marketed as the lowest possible price, GM cleared an inventory buildup of 2005 models to make way for its 2006 lineup. While the promotion was a temporary shot in the arm for sales, it did not help the company's bottom line. Thus, GM has begun a renewed emphasis on product features in its ads, not just price.
Economics
As is the case with the two other U.S. automobile manufacturers, international exchange rates tend to help Japanese and Korean imports (though not sales of vehicles manufactured in America). Japan and China were accused of manipulating exchange rates to gain a market advantage through purchases of U.S. Treasuries after the September 11, 2001 attacks in violation of Article IV of the International Monetary Fund Accords in hearings before the U.S. Senate Committee on Banking, Housing, and Urban Affairs May 1, 2002 by economist and former Ambassador Ernest Preeg on behalf of American manufacturers. [7] The expected future entry of China into the U.S. automotive market is likely to be advantaged by unrealistic currency exchange ratios.
In March 2005, the Government of Canada provided C$200 million in incentives to General Motors for its Ontario plants, and last fall it provided C$100 million to Ford Motor Co. to expand production and provide jobs, according to Jim Harris. Similar incentives were promised to non-North American auto companies like Toyota, Premier Dalton McGuinty said the money the province and Ottawa are pledging for the project is well-spent. His government has committed C$400 million, including the latest Toyota package of C$125 million, to the province's automobile sector, which helped finance $5 billion worth of industry projects.
For the first time, in 2004 the total number of cars produced by all makers in Ontario exceeded those produced in Michigan.
GM in China
General Motors is the second top-selling foreign auto maker in China, operating under the name of "Shanghai GM", with a 12.5% market there. The Buick brand is especially strong, led by the Buick Excelle subcompact. Cadillac initiated sales in China in 2004, starting with imports. GM pushed the Chevrolet brand there in 2005 as well, transferring the formerly-Buick Sail to that marque. The company manufactures most of its China-market vehicles locally, through its Shanghai GM joint venture. The SAIC-GM-Wuling Automobile joint-venture is also successful selling trucks and vans under the Wuling marque.
Corporate restructuring
After gaining market share in the late 1990s and making enormous profits General Motors stock soared to over $80 a share. However, in 2000, twelve successive interest rate hikes by the Federal Reserve to quell the stock market, and a severe stock market decline following the September 11, 2001 attacks, caused a pension and benefit funds crisis at General Motors and many other American companies. General Motor's rising retiree health care costs and Other Post Employment Benefit (OPEB) fund deficit prompted the company to enact a broad restructuring plan. Although GM had already taken action to fully fund its pension plan, its OPEB fund became an issue for its corporate bond ratings. GM had expressed its disagreement with the bond ratings; moveover, GM's benefit funds were performing at higher than expected rates of return. Then, following a $10.6 billion loss in 2005, GM acted quickly to implement its restructuring plan. For the first quarter of 2006 GM earned $400 million, signaling a turnaround had already begun even though many aspects of the restructuring plan had not yet taken effect.
In February 2005, GM successfully bought itself out of a put option with Fiat for $2 billion USD (€1.55 billion). In 2000, GM had sold a 6% stake to Fiat in return for a 20% share in the Italian automaker. As part of the deal, GM granted Fiat a put option which, if exercised between January 2004 and July 2009, could have forced GM to buy Fiat. GM had agreed to the put option at the time, perhaps to keep it from being acquired by another automaker such as DaimlerChrysler competing with GM's Opel and Vauxhall marques. The relationship suffered, and Fiat had failed to improve. In 2003, Fiat recapitalized, reducing GM's stake to 10%.
In February 2006, GM slashed its annual dividend from 2.00 to $1.00 per share. The reduction saved $565 million a year.
In March 2006, GM divested 92.36 million shares (reducing their stake from 20% to 3%) of Japanese manufacturer Suzuki, in order to raise $2.3 billion. GM originally invested in Suzuki in the early 1980s.
On March 23, a private equity consortium including KKR, Goldman Sachs Capital, and Five Mile Capital purchased $8.8 billion, or 78% of GMAC, GM's commercial mortgage arm. The new entity, in which GMAC will own a 21% stake, will be known as Capmark Financial Group[8].
On April 3, 2006, GM announced that it would sell 51% of GMAC as a whole to a consortium led by Cerberus Capital Management, raising $14 billion over 3 years. Investors also include Citigroup's private equity arm and Aozora Bank of Japan. The group will pay GM $7.4 billion in cash at closing. GM will retain approximately $20 billion in automobile financing worth an estimated $4 billion over three years.
GM sold its 8% stake in Isuzu on April 11, 2006, to raise an additional $300 million.[9]
On June 26, 2006, 35,000 GM workers had agreed to company buyouts, well over the company goal significantly reducing GM's operating costs and future liability.
On June 26, 2006, 12,600 workers from Delphi, a key supplier to GM, agreed to buyouts and an early retirement plan offered by GM in order to avoid a strike, after a judge agreed to cancel Delphi's union contracts. 5,000 Delphi workers were allowed to flow to GM.
GM continues to open new plants and modernize existing plants which tends to go unreported. With improving sales, GM could modify its plans. Plants scheduled to close under the planned GM restructuring include (source: General Motors Corporation):
Plants Location Closing Role # Employees
Scarborough Assembly van plant Ontario 1993 Van assembly 2,700
Moraine Assembly (3rd shift) Ohio 2006 Mid-size SUV assembly 4,165
Oklahoma City Assembly Oklahoma Early 2006 Mid-size trucks and SUV assembly 2,734
Lansing Craft Centre Michigan Mid-2006 Chevrolet SSR roadster assembly 398
Spring Hill Manufacturing Line 1 Tennessee March 2007 Saturn Ion sedan and coupe assembly 5,776
Doraville Assembly Georgia 2008 Minivan assembly 3,076
Lansing Metal Center Michigan 2006 Metal fabricating 1,398
Portland Distribution Center Oregon 2006 Parts distribution 95
Saint Louis Distribution Center Missouri 2006 Parts distribution 182
Pittsburgh Metal Pennsylvania 2007 Metal fabricating 613
Ypsilanti Processing Center Michigan 2007 Parts processing 278
St. Catharines Engine Ontario 2008 Engine/Transmission parts 1,699
Flint North 3800 Michigan 2008 Engines 2,677
Controversy over electric vehicles
EV1s crushed by General Motors shortly after productionOn June 30, 2006 a documentary about the demise of the EV1 and other electric vehicles entitled "Who Killed the Electric Car?" debuted in theatres across America, sparking criticism of the motivation behind the cancellation of their electric car program.
Consumer advocates, activists, commentators, journalists, and documentary makers claim GM had deliberately sabotaged their company's zero emission electric vehicle efforts through several methods: failing to market, failing to produce appropriate vehicles, failing to satisfy demand, and using lease-only programs with prohibitions against end of lease purchase.[2] [3] [4] [5] [6]
The process of obtaining GM's first electric vehicle the EV1 was difficult. The vehicle could not be purchased outright. Instead, General Motors offered a closed-end lease for three years, with no renewal or residual purchase options. The EV1 was only available from specialist Saturn dealerships, and only in California.[7] Before reviewing leasing options, a potential lessee would be taken through a 'pre-qualification' process in order to learn how the EV1 was different from other vehicles. Next came a waiting list with no scheduled delivery date.[8]
Several weeks before the debut of the movie, the Smithsonian Institution announced that its EV1 display was being permanently removed and the EV1 car put into storage. GM is a major financial contributor to the museum, and both parties denied that this fact contributed to the removal of the display.[9]
However, General Motors disputes the existence of any conspiracy surrounding the death of the EV1. An entry was posted on the GM FastLane Blog in 2006 in which GM defended its decision by saying that it was unable to guarantee the vehicles could continue to be maintained in a safe operating state. The automaker acknowledges that perhaps the events could have gone differently, but that in the end they did what was in the best interest of consumer safety.[10]
General Motors has responded to complaints about the scrapping of the EV1 program: During the four years available to the public, only 800 EV1's were released. Over $1 billion was spent on the EV1 program, with a great portion used for consumer incentives and marketing. With a waiting list of 5,000 applicants, only 50 individuals actually were willing to accept a lease on the EV1. Suppliers ceased production of replacement parts due to the low demand for the EV1. This made repairs and continued safety of the vehicles difficult.
However, GM's most recent release, a hybrid vehicle with a bias toward the electric motor versus the gasoline motor, promises to make progress in the field of electric propulsion in automobiles.
From General Motors
General Motors (GM) has responded through a blog post entitled Who Ignored the Facts About the Electric Car? by Dave Barthmuss of their communications department. He does not address the movie directly, since he has not seen it, but tells GM's side of the story, about their big investment before and since the EV1, the limited market in spite of their efforts, and how they maybe could have handled the decommissioning better. A quote:
Sadly, despite the substantial investment of money and the enthusiastic fervor of a relatively small number of EV1 drivers — including the filmmaker — the EV1 proved far from a viable commercial success.
He notes investments in electric vehicle technology since the EV1: Two-Mode Hybrid, plug-in hybrid, and fuel cell vehicle programs. The filmmakers suggested that GM did not immediately channel its technological progress with the EV1 into these projects, and instead let the technology languish while focusing on more immediately profitable enterprises such as SUVs.
Unlike the movie, GM is bullish on hydrogen, according to Barthmuss:
Although hydrogen fuel cell technology was cast as a pie-in-the-sky technology by the moviemakers, GM is making great progress in fuel cell research and development and is on track to achieving its goal to validate and design a fuel cell propulsion system by 2010 that is competitive with current combustion systems on durability and performance, and that ultimately can be built at scale, affordably.
According to GM, not all of the EV1's were destroyed. Many were donated to research institutions and facilities, along with museums. [11]
There is no other major automaker on the road offering a fully electric vehicle designed for everyday use on public transportation routes. [12]. However the Norwegian built electric car Think Nordic, which Ford bought and mothballed after a similar lease-only release, is still very popular in Norway thanks to the government's policy to promote the use of electrical cars. Think have recently switched to production of electric buses and other public transportation. EVs in Norway are exempt from taxes, have free parking, pass toll roads for free, and are allowed to drive in the bus lanes avoiding traffic congestions. This has lead to many Norwegian consumers buying back second-hand the many Think cars that were recalled after the failed lease programs in other countries.
Further reading
Barabba, Vincent P. Surviving Transformation: Lessons from GM's Surprising Turnaround (2004)
Chandler, Alfred D., Jr., ed. Giant Enterprise: Ford, General Motors, and the Automobile Industry 1964.
Cray, Ed. Chrome Colossus: General Motors and Its Times. 1980.
Farber, David. Sloan Rules: Alfred P. Sloan and the Triumph of General Motors U of Chicago Press 2002
Gustin, Lawrence R. Billy Durant: Creator of General Motors , 1973.
Halberstam, David. The Reckoning (1986) detailed reporting on the crises of 1973-mid 1980s
Keller, Maryann. Rude Awakening: The Rise, Fall, and Struggle for Recovery of General Motors, 1989.
Leslie, Stuart W. Boss Kettering: Wizard of General Motors Columbia University Press, 1983.
Maxton, Graeme P. and John Wormald, Time for a Model Change: Re-engineering the Global Automotive Industry (2004)
Maynard, Micheline. The End of Detroit: How the Big Three Lost Their Grip on the American Car Market (2003)
Rae, John B. The American Automobile: A Brief History. University of Chicago Press, 1965.
Sloan, Alfred P., Jr. My Years with General Motors, 1963.
Weisberger, Bernard A. The Dream Maker: William C. Durant, Founder of General Motors , 1979
See also
[edit] People
Alfred P. Sloan
Books and Films
Final Offer - A documentary film that shows the 1984 GM contract negotiations, that would result in the union split of the Canadian arm of the UAW. A very interesting inside look at union negotiations.
Roger & Me - the first documentary by filmmaker Michael Moore. The film criticizes General Motors for closing down its factories in Moore's hometown of Flint, Michigan, despite record profits. After Flint residents lose their many jobs at GM, Moore claims the town descends into economic chaos.
Who Killed the Electric Car? - A documentary film charting GM's launch, then supposed self-sabotage of the electric car EV1.
Brands
Buick
Cadillac
Chevrolet
Daewoo Motors
GMC
Holden
Hummer
Oldsmobile
Opel
Pontiac
Saab
Saturn
Vauxhall Motors
Other Related Topics
General Motors streetcar conspiracy
Subsidiaries
Fisher Body
General Motors Acceptance Corporation
General Motors Canada
GMC
GM Europe
General Motors Colmotores Colombia
General Motors South Africa
Categories
List of GM platforms
List of GM engines
List of GM factories
List of GM VIN codes
GM vehicles by brand
EPA 2004 fuel economy report (General Motors)
Tribrid
External links
Offical
Official Website
Official Website of GM Europe
GM's Corporate Blogs: Fastlane and FYI
GMability, GM's corporate responsibility site
GM's K-12 education site
Corporate history
Unofficial
Cheers and Gears - GM Enthusiast and News Forum
GMInsideNews - GM Enthusiast and News Forum
GM Photo Galleries
GM picture galleries
GM 2006 VIN chart.
Ghandhara Industries Limited
Gallery of General Motors Advertisements
UAW Death Watch - News and Discussion regarding the UAW at GM and other manufactures
References
From Wikipedia, the free encyclopedia
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This article is about the company. For the railway station, see General Motors railway station, Melbourne.
General Motors Corporation
Type Public (NYSE: GM)
Founded 1908
Headquarters Detroit, Michigan, USA
manufacturing facilities in 30 U.S. states and 33 countries
Key people Rick Wagoner, Chairman & CEO
Robert A. Lutz, Vice Chairman
Frederick Henderson, CFO
Industry Automotive
Products Automobiles
Engines
Revenue $192.604 Billion USD (2005)
Net income -$10.567 Billion USD (2005)
Employees 326,999 (2006)
Website www.gm.com
General Motors Corporation, also known as GM, is the world's largest automaker and has been since 1931. Founded in 1908, GM today employs about 326,999 people around the world. With global headquarters at the Renaissance Center in Detroit, Michigan, USA, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, Daewoo (now sold under the Chevrolet and Suzuki brands in the United States, Europe and in some other countries), Holden, Hummer, Oldsmobile (now defunct), Opel, Pontiac, Saab, Saturn, Vauxhall. GM operates a finance company, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is a vehicle safety, security and information service provider.
GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea, and has product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan. GM also has advanced technology collaborations with Toyota Motor Corporation of Japan, DaimlerChrysler AG and BMW AG of Germany, and vehicle manufacturing ventures with several automakers around the world, including Toyota, Suzuki, Shanghai Automotive Industry Corporation of China, AutoVAZ and Avtotor of Russia and Renault SA of France.
GM Parts and accessories are sold under the GM, GM Performance Parts, GM Goodwrench and ACDelco brands through GM Service and Parts Operations, which supplies GM dealerships and distributors worldwide. GM engines and transmissions are marketed through GM Powertrain. GM's largest national market is the United States, followed by China, Canada, the United Kingdom, and Germany.
Contents
1 History
1.1 Renault-Nissan proposal
1.2 General Motors Hughes Electronics
2 Auto racing
3 Corporate structure and leadership
3.1 Chairmen of the Board of General Motors
3.2 Chief Executive Officers of General Motors
3.3 Presidents of General Motors
4 Corporate issues
4.1 Social policies
4.2 Environment and alternative vehicles
4.2.1 Hybrid initiative
4.2.2 Hydrogen initiative
4.3 Marketing
4.4 Economics
4.5 GM in China
4.6 Corporate restructuring
5 Controversy over electric vehicles
5.1 From General Motors
6 Further reading
7 See also
7.1 People
7.2 Books and Films
7.3 Brands
7.4 Other Related Topics
7.5 Subsidiaries
7.6 Categories
8 External links
8.1 Offical
8.2 Unofficial
9 References
History
The Renaissance Center in Detroit, Michigan, is General Motors' world headquartersGeneral Motors was founded in 1908 in Flint, Michigan, as a holding company for Buick, then controlled by William C. Durant, and acquired Oldsmobile later that year. The next year, Durant brought in Cadillac, Elmore, Oakland and several others. In 1909, General Motors acquired the Rapid Motor Vehicle Company of Pontiac, Michigan, the predecessor of GMC Truck. A Rapid became the first truck to conquer Pikes Peak in 1909. Durant lost control of GM in 1910 to the company's bankers, because of the large amount of debt taken on in its acquisitions.
Durant left the firm and helped establish the Chevrolet Motor Company in 1912 with brothers Gaston and Louis Chevrolet. He returned to head GM in 1915, with financing by Pierre S. du Pont. Chevrolet entered the General Motors fold in 1916. Du Pont removed Durant from management in 1920, and various Du Pont interests held large or controlling share holdings until about 1950.
GM surpassed Ford Motor Company in the 1920s thanks to the leadership of Alfred Sloan. While Ford continued to refine the manufacturing process to reduce cost, Sloan was inventing new ways of managing a complex worldwide organization, while paying special attention to consumer demands. Car buyers no longer wanted the cheapest and most basic model; they wanted style, power, and prestige, which GM offered them. Thanks to consumer financing, easy monthly payments allowed far more people to buy GM cars, while Ford was moralistically opposed to credit. During the 1920s and 1930s, General Motors bought out the Yellow Coach bus company, and helped create Greyhound bus lines. They replaced intercity train transport with buses, and established subsidiary companies to buy out streetcar companies and replace the rail-based services as well with buses. GM formed United Cities Motor Transit in 1932 (see General Motors streetcar conspiracy for additional details).
General Motors produced vast quantities of armaments, vehicles and even aircraft during World War II, and also had sizeable interests in Nazi Germany [1]. During the war, the U.S auto companies were concerned that the Nazis would nationalize American owned factories in Germany. In the spring of 1939, the Nazis had assumed day to day control of American owned factories in Germany, but decided against nationalizing them. GM's William P. Knudson served as head of U.S. wartime production for President Franklin Roosevelt who had referred to Detroit as the Arsenal of Democracy. Today, Detroit is the headquarters for the U.S. Army Tank-Automotive and Armaments Command, known as TACOM.
General Motors bought the internal combustion engined railcar builder Electro-Motive Corporation and its engine supplier Winton Engine in 1930, renaming both as the General Motors Electro-Motive Division. Over the next twenty years, diesel-powered locomotives — the majority built by GM — largely replaced other forms of traction on American railroads. (During World War II, these engines were also important in American submarines and destroyer escorts.) Electro-Motive was sold in early 2005.
At one point GM had become the largest corporation registered in the United States, in terms of its revenues as a percent of GDP. In 1953 Charles Erwin Wilson, then GM president, was named by Eisenhower as Secretary of Defense. When he was asked during the hearings before the Senate Armed Services Committee if as secretary of defense he could make a decision adverse to the interests of General Motors, Wilson answered affirmatively but added that he could not conceive of such a situation "because for years I thought what was good for the country was good for General Motors and vice versa". Later this statement was often misquoted, suggesting that Wilson had said simply, "What's good for General Motors is good for the country." At the time, GM was one of the largest employers in the world – only Soviet state industries employed more people. On December 31, 1955, General Motors became the first American corporation to make over one billion dollars in a year.
After GM's massive lay-offs hit Flint, Michigan, a strike began at the General Motors parts factory in Flint on June 5, 1998, which quickly spread to five other assembly plants and lasted seven weeks. Because of the significant role GM plays in the United States, the strikes and temporary idling of many plants noticably showed in national economic observations.
In the late 1990s, GM had regained market share; its stock had soared to over $80 a share by 2000. However, in 2001, the stock market drop following the September 11, 2001 attacks, combined with historic pension underfunding, caused a severe pension and benefit fund crisis at GM and many other American companies and the value of their pension funds plummeted. A weak U.S. dollar and private health care (as opposed to nationalized health care in other countries,) costs also put GM at a disadvantage to its Japanese, Korean, and European counterparts. In successive moves, GM responded to the crisis by fully funding its pension fund; however, its Other Post Employment Benefits Fund (OPEB) became a serious issue resulting in downgrades to its bond rating in 2005. The company expressed its disagreement with these bond rating downgrades. In 2006, GM responded by offering buyouts to hourly workers to reduce future liabilty; over 35,000 workers responded to the offer, well exceeding the company's goal. GM has gained higher rates of return on its benefit funds as a part of the solution. Stock value has begun to rebound - as of October 30, 2006 GM's market capitalization was about $19.19 billion.
Nevertheless, since 2000, GM has remained the world's largest auto maker, ranked according to sales. After oil company mergers, GM's rank changed to the 5th largest company in the United States and the world in terms of sales.
Renault-Nissan proposal
On June 30, 2006, Kirk Kerkorian, whose Tracinda Corporation is the third-largest shareholder of General Motors, proposed a global alliance between GM and the Renault & Nissan. Carlos Ghosn, the CEO of both Renault and Nissan expressed interest in possibly acquiring a stake in GM. GM held an emergency board meeting to examine Kerkorian's proposal; GM's board reaffirmed its support for CEO Rick Wagoner and GM's turnaround plans. On July 14, 2006, after a meeting with Carlos Ghosn, Rick Wagoner decided to study the matter for 90 days, including non-alliance forming ventures. On October 4 2006 the companies announced the end of the discussions about an alliance, determining "that significant aggregate synergies might result from the alliance" and "the parties did not agree on either the total amount of aggregate synergies or the distribution of those benefits."[2] On November 30th, 2006, Kerkorian's investment company, Tracinda Corp., dumped the last block of what was once a nearly 10 percent share of the world's largest automaker to Bank of America, a longtime lender to Kerkorian. Kerkorian helped install Tracinda adviser Jerome York, a former Chrysler Corp. executive, on the company's board of directors and successfully proposed the automaker cut its dividend in half. Kerkorian sold his entire remaining investment in GM — 28 million shares — at $29.95 a share, a transaction worth more than $800 million.[3]
General Motors Hughes Electronics
Main article: Hughes Electronics
GM Hughes Electronics was formed in 1985 when Hughes Aircraft was sold by the Howard Hughes Medical Institute to GM for $5 billion. GM merged Hughes Aircraft with its Delco Electronics unit to form GM Hughes Electronics (GMHE). This division was a major defense contractor, civilian space systems manufacturer and communications company. The defense business was sold to Raytheon in 1997 and the space and communications division was sold to Boeing in 2000.
Auto racing
General Motors has an extensive history in numerous forms of racing. Vehicles of most, if not all, of GM's brands have been represented in competition, with perhaps Chevrolet being the most prominent. In particular, the Chevrolet Corvette has long been popular and successful in international road racing. GM also is a supplier of racing components, such as engines, transmissions, and electronics. GM's Oldsmobile Aurora engine platform was successful in open-wheel Indy-style racing throughout the 1990s, winning many races in the small V-8 class. An unmodified Aurora V-8 in the Aerotech, captured 47 world records, including the record for speed endurance in the Motorsports Hall of Fame of America. Recently, the Cadillac V-Series has entered motorsports racing. GM has also used many cars in the American racing series NASCAR. Currently the Chevrolet Monte Carlo is the only entry in the series but in the past the Pontiac Grand Prix, Buick Regal, Oldsmobile Cutlass, Chevrolet Lumina, and Chevrolet Malibu were also used.
In touring cars (mainly in Europe) Vauxhall is a key player and former champion in the British Touring Car Championship (BTCC) series and competes with a Vauxhall Astra VXR in BTC spec. Opel is one of the three participants in the DTM series (along with Audi and Mercedes Benz) and is a former champion and competes with a unique 500 bhp vehicle that resmbles the Opel Vectra. Chevrolet competes with a Lacetti in the FIA World Touring Car Championship (WTCC).
In Australia, there is the prestigious V8 Supercar Championship which is battled out by the two main rivals in Holden& Ford. The current Holden Racing Team cars are based on the Holden Commodore and run a 5.0 Litre fuel-injected V8 producing 600+ BHP (approx 500Kw Power) @ 7500rpm. These cars have a top speed of 300 + km/h (200mph) and run 0-100km/h in less than 4 seconds.
In 2006, The Holden Racing Team again carried the mantle as Australia's most successful team in Australian Touring Car History.
Corporate structure and leadership
Current members of the board of directors of General Motors are: Percy Barnevik, Erskine Bowles, John Bryan, Armando Codina, George Fisher, Karen Katen, Kent Kresa, Ellen Kullman, Philip Laskawy, Eckhard Pfeiffer, and Rick Wagoner (chairman). Jerome York, who was elected to the board on February 6, 2006 to represent Kirk Kerkorian abrubptly resigned on October 6, 2006, following the decision by GM to break off talks about an alliance with Nissan and Renault.
Rick Wagoner is also the chief executive officer of the company (since June 1, 2000), succeeding John F. Smith, Jr.
Chairmen of the Board of General Motors
Chairmen of the Board of General Motors[4]
Thomas Neal Nov.19,1912 - Nov. 16, 1915
Pierre S. du Pont Nov.16,1915 - Feb. 7, 1929
Lammot du Pont Feb.7, 1929 - May 3, 1937
Alfred P. Sloan, Jr. May 3,1937 - April 2, 1956
Albert Bradley April 2, 1956 - Aug. 31, 1958
Frederic G. Donner Sept. 1, 1958 - Oct. 31, 1967
James M. Roche Nov. 1, 1967 - Dec. 31, 1971
Richard C. Gerstenberg Jan. 1, 1972 - Nov. 30, 1974
Thomas A. Murphy Dec. 1, 1974 - Dec. 31, 1980
Roger B. Smith Jan. 1, 1981 - July 31, 1990
Robert C. Stempel Aug. 1, 1990 - Nov. 1, 1992
John G. Smale Nov. 2, 1992 - Dec. 31, 1995
John F. Smith, Jr. Jan. 1, 1996 - April 30, 2003
G. Richard Wagoner, Jr. May 1, 2003 - Present
Chief Executive Officers of General Motors
Chief Executive Officers of General Motors[5]
Alfred P. Sloan, Jr. May 10, 1923 - June 3, 1946
Charles E. Wilson June 3, 1946 - Jan. 26, 1953
Harlow H. Curtice Feb. 2, 1953 - Aug. 31, 1958
Frederic G. Donner Sept. 1, 1958 - Oct. 31, 1967
James M. Roche Nov. 1, 1967 - Dec. 31, 1971
Richard C. Gerstenberg Jan. 1, 1972 - Nov. 30, 1974
Thomas A. Murphy Dec. 1, 1974 - Dec. 31, 1980
Roger B. Smith Jan. 1, 1981 - July 31, 1990
Robert C. Stempel Aug. 1, 1990 - Nov. 1, 1992
John F. Smith, Jr. Nov. 2, 1992 - May 31, 2000
G. Richard Wagoner, Jr. June 1, 2000 - Present
Presidents of General Motors
Presidents of General Motors [6]
George E. Daniels Sept. 22, 1908 - Oct. 20, 1908
William M. Eaton Oct. 20, 1908 - Nov. 23, 1910
James J. Storrow Nov. 23, 1910 - Jan. 26, 1911
Thomas Neal Jan. 26, 1911 - Nov. 19, 1912
Charles W. Nash Nov. 19, 1912 - June 1, 1916
William C. Durant June 1, 1916 - Nov. 30, 1920
Pierre S. du Pont Nov. 30, 1920 - May 10, 1923
Alfred P. Sloan, Jr. May 10, 1923 - May 3, 1937
William S. Knudsen May 3, 1937 - Sept. 3, 1940
Charles E. Wilson Jan. 6, 1941 - Jan. 26, 1953
Harlow H. Curtice Feb. 2, 1953 - Aug. 31, 1958
John F. Gordon Sept. 1, 1958 - May 31, 1965
James M. Roche June 1, 1965 - Oct. 31, 1967
Edward N. Cole Nov. 1, 1967 - Sept. 30, 1974
Elliott M. Estes Oct. 1, 1974 - Jan. 31, 1981
F. James McDonald Feb. 1, 1981 - Aug. 31, 1987
Robert C. Stempel Sept. 1, 1987 - July 31, 1990
Lloyd E. Reuss Aug. 1, 1990 - April 6, 1992
John F. Smith, Jr. April 6, 1992 - Oct. 5, 1998
G. Richard Wagoner, Jr. Oct. 5, 1998 - April 30, 2003
Corporate issues
Social policies
General Motors was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine. For example, GM has given millions of dollars in computers to colleges of Engineering through its PACE Awards program.
Environment and alternative vehicles
General Motors has long worked on alternative-technology vehicles, and has recently led the industry with clean burning Flex Fuel vehicles that can run on either E-85 (ethanol) or gasoline. The company was the first to use turbochargers and was an early proponent of V6 engines in the 1960s, but quickly lost interest as the muscle car race took hold. They demonstrated [1] gas turbine vehicles powered by kerosene, an area of interest throughout the industry in the late 1950s, but despite extensive thermal recycling (developed by Chrysler) the fuel consumption was too high and starting torque too low for everyday use. They were also an early licensee of Wankel engine technology, even developing the Chevrolet Monza around the powerplant, but abandoned the alternative engine configuration in view of the 1973 oil crisis. In the 1970s and 1980s, GM pushed Diesel engines and cylinder deactivation technologies to disastrous results due to poor durability in the Oldsmobile diesels (this was a modified gasoline engine) and drivability issues in the Cadillac 4-6-8 variable cylinder engines.
In 1996, GM introduced the EV1, the first modern mass-produced electric car, which was available by lease only (see below: Controversy over EV1). Despite the positive publicity generated by this vehicle, and a long waiting list for the cars, the company cancelled the program after only a tiny production run, reportedly due to a "lack of consumer interest". GM forced return of EV1 vehicles, even though some owners wanted to keep them. The story of GM's non-support for its own product is related in the 2006 documentary Who killed the electric car?.
[edit] Hybrid initiative
GM delivered the first commercial hybrid vehicle and was early innovator in hybrid vehicle development, building Diesel-electric trains since the 1930s (but without stored energy recovery) and buses since the 1990s. In May 2004, GM delivered the world's first full sized hybrid pickups, and introduced a hybrid passenger car. In 2005, the new Opel Astra Diesel Hybrid concept vehicle appears. The 2006 Saturn VUE Green Line will be the first hybrid passenger vehicle from GM, but it too is a mild design. GM has hinted at new hybrid technologies to be employed that will be optimized for higher speeds such as are encountered in freeway driving.
Hydrogen initiative
GM has prided its research and prototype development of hydrogen powered vehicles, to be produced in early 2010, using a support infrastructure still in a prototype state. The economic feasibility of the technically challenging hydrogen car, and the low-cost production of hydrogen to fuel it, has also been discussed by other automobile manufacturers such as Ford and Chrysler.
Marketing
Each of GM's automotive divisions were once each targeted to specific market segments and, despite some shared components, each distinguished itself from its stablemates with unique styling and (to some extent) technology. The shared components and common corporate management created substantial economies of scale, while the distinctions between the divisions created an orderly upgrade path, with an entry-level buyer starting out with a practical and economical Chevrolet and, (assuming progressive prosperity of the buyer), moving through offerings of the several divisions until the purchase of a Cadillac. The divisions were not competing with each other as much as passing along the same customer, who would thus always be buying a GM product, with the profits flowing to this single corporation.
The postwar industry became enamored with the concept of "planned obsolescence", implemented by both technical and styling innovations, with a three year product cycle typical within the industry. In this cycle, a new basic body shell is introduced and then modified for the next two years by minor styling changes. GM, Ford, and Chrysler competed vigorously in this new environment.
By 1958, the divisional distinctions began to blur, with the availability of high-performance engines in Chevrolets and Pontiacs, and the introduction of higher trim models such as the Chevrolet Impala and Pontiac Bonneville that were priced in line with some of Oldsmobile and Buick's offerings. By the time that Pontiac, Oldsmobile and Buick introduced similarly styled and priced compact models for 1961, the old "step-up" structure between the divisions was nearly over.
By the mid 1960s, most of GM's vehicles were built on a few common platforms and in the 1970s, began to use nearly identical body panel stampings, differing only in internal and external trim items. This was seen especially in the compact passenger vehicles offered by the divisions. Nonetheless, the 1960-75 period was perhaps the greatest in GM's history, as it eventually held slightly over 50% of the U.S. market.
The subcompact Chevrolet Vega, introduced for the 1971 model year damaged GM's reputation more than perhaps any other vehicle in its history. Plagued by rust problems and an aluminum engine that was prone to failure at low mileage, the car was not designed and built to the standards consumers expected from GM.
By the 1980s, GM frequently "rebadged" one division's successful vehicle into several models across the divisions, all positioned close to one another in the market place. Thus, a new GM model's main competition might be another model spawned off the same platform. This led to so-called market "cannibalization", where GM's respective divisions spent time stealing sales from one another, while other more co-ordinated efforts (notably from the Japanese manufacturers) were allowed to increase their market penetration. Even today, the company's GMT360 mid-sized light truck platform has, since its inception in 2002, spawned the basic Chevrolet Trailblazer, an extended version of the Trailblazer, the Oldsmobile Bravada, the GMC Envoy, the Envoy XUV (an extended Envoy with a reconfigurable tailgate) and later, the Isuzu Ascender, Buick Rainier, and, to a lesser extent, the Saab 9-7X. Though each model had a more or less unique mission, without custom engine choices or radically different suspension settings and trim choices, the cars can hardly be discerned from one another.
In the late 1990s, the U.S. economy was on the rise and GM and Ford gained market share producing enormous profits primarily from the sale of light trucks and sport-utility vehicles. From 2000 to 2001, the Federal Reserve, in a move to quell the stock market, made twelve successive interest rate increases. Following the September 11, 2001 attacks, a severe stock market decline magnified the effect of GM's history pension and benefit fund underfunding, precipitating a crisis. At the same time, this crisis happened at other U.S. companies with similar histories, such as Ford, DaimlerChrysler, and United Airlines. GM began its Keep America Rolling campaign, which boosted sales, and other auto makers were forced to follow suit. The U.S. automakers saw gross margins deteriorate.
In 2004, GM redirected resources from the development of new sedans to an accelerated refurbishment of their light trucks and SUVs for introduction as 2007 models in early 2006. Shortly after this decision, fuel prices increased by over 50% and this in turn affected both the trade-in value of used vehicles and the perceived desirability of new offerings in these market segments. The current marketing plan is currently to extensively tout these revised vehicles as offering the best fuel economies in their class (of vehicle). GM claims its hybrid trucks will have gas-mileage improvements of 25%, bettering the current fuel-economy leader, Toyota.
In the summer of 2005 GM announced that effective immediately, its corporate chrome emblem "Mark of Excellence" will begin appearing on all recently introduced and all-new 2006 model vehicles produced and sold in North America. The move is seen as an attempt by GM to link its name and vehicle brands more closely. The company's vehicle brands include Chevrolet, Pontiac, Buick, GMC, Cadillac, Saab, Hummer and Saturn.
GM promoted sales through an employee discount to all buyers. Marketed as the lowest possible price, GM cleared an inventory buildup of 2005 models to make way for its 2006 lineup. While the promotion was a temporary shot in the arm for sales, it did not help the company's bottom line. Thus, GM has begun a renewed emphasis on product features in its ads, not just price.
Economics
As is the case with the two other U.S. automobile manufacturers, international exchange rates tend to help Japanese and Korean imports (though not sales of vehicles manufactured in America). Japan and China were accused of manipulating exchange rates to gain a market advantage through purchases of U.S. Treasuries after the September 11, 2001 attacks in violation of Article IV of the International Monetary Fund Accords in hearings before the U.S. Senate Committee on Banking, Housing, and Urban Affairs May 1, 2002 by economist and former Ambassador Ernest Preeg on behalf of American manufacturers. [7] The expected future entry of China into the U.S. automotive market is likely to be advantaged by unrealistic currency exchange ratios.
In March 2005, the Government of Canada provided C$200 million in incentives to General Motors for its Ontario plants, and last fall it provided C$100 million to Ford Motor Co. to expand production and provide jobs, according to Jim Harris. Similar incentives were promised to non-North American auto companies like Toyota, Premier Dalton McGuinty said the money the province and Ottawa are pledging for the project is well-spent. His government has committed C$400 million, including the latest Toyota package of C$125 million, to the province's automobile sector, which helped finance $5 billion worth of industry projects.
For the first time, in 2004 the total number of cars produced by all makers in Ontario exceeded those produced in Michigan.
GM in China
General Motors is the second top-selling foreign auto maker in China, operating under the name of "Shanghai GM", with a 12.5% market there. The Buick brand is especially strong, led by the Buick Excelle subcompact. Cadillac initiated sales in China in 2004, starting with imports. GM pushed the Chevrolet brand there in 2005 as well, transferring the formerly-Buick Sail to that marque. The company manufactures most of its China-market vehicles locally, through its Shanghai GM joint venture. The SAIC-GM-Wuling Automobile joint-venture is also successful selling trucks and vans under the Wuling marque.
Corporate restructuring
After gaining market share in the late 1990s and making enormous profits General Motors stock soared to over $80 a share. However, in 2000, twelve successive interest rate hikes by the Federal Reserve to quell the stock market, and a severe stock market decline following the September 11, 2001 attacks, caused a pension and benefit funds crisis at General Motors and many other American companies. General Motor's rising retiree health care costs and Other Post Employment Benefit (OPEB) fund deficit prompted the company to enact a broad restructuring plan. Although GM had already taken action to fully fund its pension plan, its OPEB fund became an issue for its corporate bond ratings. GM had expressed its disagreement with the bond ratings; moveover, GM's benefit funds were performing at higher than expected rates of return. Then, following a $10.6 billion loss in 2005, GM acted quickly to implement its restructuring plan. For the first quarter of 2006 GM earned $400 million, signaling a turnaround had already begun even though many aspects of the restructuring plan had not yet taken effect.
In February 2005, GM successfully bought itself out of a put option with Fiat for $2 billion USD (€1.55 billion). In 2000, GM had sold a 6% stake to Fiat in return for a 20% share in the Italian automaker. As part of the deal, GM granted Fiat a put option which, if exercised between January 2004 and July 2009, could have forced GM to buy Fiat. GM had agreed to the put option at the time, perhaps to keep it from being acquired by another automaker such as DaimlerChrysler competing with GM's Opel and Vauxhall marques. The relationship suffered, and Fiat had failed to improve. In 2003, Fiat recapitalized, reducing GM's stake to 10%.
In February 2006, GM slashed its annual dividend from 2.00 to $1.00 per share. The reduction saved $565 million a year.
In March 2006, GM divested 92.36 million shares (reducing their stake from 20% to 3%) of Japanese manufacturer Suzuki, in order to raise $2.3 billion. GM originally invested in Suzuki in the early 1980s.
On March 23, a private equity consortium including KKR, Goldman Sachs Capital, and Five Mile Capital purchased $8.8 billion, or 78% of GMAC, GM's commercial mortgage arm. The new entity, in which GMAC will own a 21% stake, will be known as Capmark Financial Group[8].
On April 3, 2006, GM announced that it would sell 51% of GMAC as a whole to a consortium led by Cerberus Capital Management, raising $14 billion over 3 years. Investors also include Citigroup's private equity arm and Aozora Bank of Japan. The group will pay GM $7.4 billion in cash at closing. GM will retain approximately $20 billion in automobile financing worth an estimated $4 billion over three years.
GM sold its 8% stake in Isuzu on April 11, 2006, to raise an additional $300 million.[9]
On June 26, 2006, 35,000 GM workers had agreed to company buyouts, well over the company goal significantly reducing GM's operating costs and future liability.
On June 26, 2006, 12,600 workers from Delphi, a key supplier to GM, agreed to buyouts and an early retirement plan offered by GM in order to avoid a strike, after a judge agreed to cancel Delphi's union contracts. 5,000 Delphi workers were allowed to flow to GM.
GM continues to open new plants and modernize existing plants which tends to go unreported. With improving sales, GM could modify its plans. Plants scheduled to close under the planned GM restructuring include (source: General Motors Corporation):
Plants Location Closing Role # Employees
Scarborough Assembly van plant Ontario 1993 Van assembly 2,700
Moraine Assembly (3rd shift) Ohio 2006 Mid-size SUV assembly 4,165
Oklahoma City Assembly Oklahoma Early 2006 Mid-size trucks and SUV assembly 2,734
Lansing Craft Centre Michigan Mid-2006 Chevrolet SSR roadster assembly 398
Spring Hill Manufacturing Line 1 Tennessee March 2007 Saturn Ion sedan and coupe assembly 5,776
Doraville Assembly Georgia 2008 Minivan assembly 3,076
Lansing Metal Center Michigan 2006 Metal fabricating 1,398
Portland Distribution Center Oregon 2006 Parts distribution 95
Saint Louis Distribution Center Missouri 2006 Parts distribution 182
Pittsburgh Metal Pennsylvania 2007 Metal fabricating 613
Ypsilanti Processing Center Michigan 2007 Parts processing 278
St. Catharines Engine Ontario 2008 Engine/Transmission parts 1,699
Flint North 3800 Michigan 2008 Engines 2,677
Controversy over electric vehicles
EV1s crushed by General Motors shortly after productionOn June 30, 2006 a documentary about the demise of the EV1 and other electric vehicles entitled "Who Killed the Electric Car?" debuted in theatres across America, sparking criticism of the motivation behind the cancellation of their electric car program.
Consumer advocates, activists, commentators, journalists, and documentary makers claim GM had deliberately sabotaged their company's zero emission electric vehicle efforts through several methods: failing to market, failing to produce appropriate vehicles, failing to satisfy demand, and using lease-only programs with prohibitions against end of lease purchase.[2] [3] [4] [5] [6]
The process of obtaining GM's first electric vehicle the EV1 was difficult. The vehicle could not be purchased outright. Instead, General Motors offered a closed-end lease for three years, with no renewal or residual purchase options. The EV1 was only available from specialist Saturn dealerships, and only in California.[7] Before reviewing leasing options, a potential lessee would be taken through a 'pre-qualification' process in order to learn how the EV1 was different from other vehicles. Next came a waiting list with no scheduled delivery date.[8]
Several weeks before the debut of the movie, the Smithsonian Institution announced that its EV1 display was being permanently removed and the EV1 car put into storage. GM is a major financial contributor to the museum, and both parties denied that this fact contributed to the removal of the display.[9]
However, General Motors disputes the existence of any conspiracy surrounding the death of the EV1. An entry was posted on the GM FastLane Blog in 2006 in which GM defended its decision by saying that it was unable to guarantee the vehicles could continue to be maintained in a safe operating state. The automaker acknowledges that perhaps the events could have gone differently, but that in the end they did what was in the best interest of consumer safety.[10]
General Motors has responded to complaints about the scrapping of the EV1 program: During the four years available to the public, only 800 EV1's were released. Over $1 billion was spent on the EV1 program, with a great portion used for consumer incentives and marketing. With a waiting list of 5,000 applicants, only 50 individuals actually were willing to accept a lease on the EV1. Suppliers ceased production of replacement parts due to the low demand for the EV1. This made repairs and continued safety of the vehicles difficult.
However, GM's most recent release, a hybrid vehicle with a bias toward the electric motor versus the gasoline motor, promises to make progress in the field of electric propulsion in automobiles.
From General Motors
General Motors (GM) has responded through a blog post entitled Who Ignored the Facts About the Electric Car? by Dave Barthmuss of their communications department. He does not address the movie directly, since he has not seen it, but tells GM's side of the story, about their big investment before and since the EV1, the limited market in spite of their efforts, and how they maybe could have handled the decommissioning better. A quote:
Sadly, despite the substantial investment of money and the enthusiastic fervor of a relatively small number of EV1 drivers — including the filmmaker — the EV1 proved far from a viable commercial success.
He notes investments in electric vehicle technology since the EV1: Two-Mode Hybrid, plug-in hybrid, and fuel cell vehicle programs. The filmmakers suggested that GM did not immediately channel its technological progress with the EV1 into these projects, and instead let the technology languish while focusing on more immediately profitable enterprises such as SUVs.
Unlike the movie, GM is bullish on hydrogen, according to Barthmuss:
Although hydrogen fuel cell technology was cast as a pie-in-the-sky technology by the moviemakers, GM is making great progress in fuel cell research and development and is on track to achieving its goal to validate and design a fuel cell propulsion system by 2010 that is competitive with current combustion systems on durability and performance, and that ultimately can be built at scale, affordably.
According to GM, not all of the EV1's were destroyed. Many were donated to research institutions and facilities, along with museums. [11]
There is no other major automaker on the road offering a fully electric vehicle designed for everyday use on public transportation routes. [12]. However the Norwegian built electric car Think Nordic, which Ford bought and mothballed after a similar lease-only release, is still very popular in Norway thanks to the government's policy to promote the use of electrical cars. Think have recently switched to production of electric buses and other public transportation. EVs in Norway are exempt from taxes, have free parking, pass toll roads for free, and are allowed to drive in the bus lanes avoiding traffic congestions. This has lead to many Norwegian consumers buying back second-hand the many Think cars that were recalled after the failed lease programs in other countries.
Further reading
Barabba, Vincent P. Surviving Transformation: Lessons from GM's Surprising Turnaround (2004)
Chandler, Alfred D., Jr., ed. Giant Enterprise: Ford, General Motors, and the Automobile Industry 1964.
Cray, Ed. Chrome Colossus: General Motors and Its Times. 1980.
Farber, David. Sloan Rules: Alfred P. Sloan and the Triumph of General Motors U of Chicago Press 2002
Gustin, Lawrence R. Billy Durant: Creator of General Motors , 1973.
Halberstam, David. The Reckoning (1986) detailed reporting on the crises of 1973-mid 1980s
Keller, Maryann. Rude Awakening: The Rise, Fall, and Struggle for Recovery of General Motors, 1989.
Leslie, Stuart W. Boss Kettering: Wizard of General Motors Columbia University Press, 1983.
Maxton, Graeme P. and John Wormald, Time for a Model Change: Re-engineering the Global Automotive Industry (2004)
Maynard, Micheline. The End of Detroit: How the Big Three Lost Their Grip on the American Car Market (2003)
Rae, John B. The American Automobile: A Brief History. University of Chicago Press, 1965.
Sloan, Alfred P., Jr. My Years with General Motors, 1963.
Weisberger, Bernard A. The Dream Maker: William C. Durant, Founder of General Motors , 1979
See also
[edit] People
Alfred P. Sloan
Books and Films
Final Offer - A documentary film that shows the 1984 GM contract negotiations, that would result in the union split of the Canadian arm of the UAW. A very interesting inside look at union negotiations.
Roger & Me - the first documentary by filmmaker Michael Moore. The film criticizes General Motors for closing down its factories in Moore's hometown of Flint, Michigan, despite record profits. After Flint residents lose their many jobs at GM, Moore claims the town descends into economic chaos.
Who Killed the Electric Car? - A documentary film charting GM's launch, then supposed self-sabotage of the electric car EV1.
Brands
Buick
Cadillac
Chevrolet
Daewoo Motors
GMC
Holden
Hummer
Oldsmobile
Opel
Pontiac
Saab
Saturn
Vauxhall Motors
Other Related Topics
General Motors streetcar conspiracy
Subsidiaries
Fisher Body
General Motors Acceptance Corporation
General Motors Canada
GMC
GM Europe
General Motors Colmotores Colombia
General Motors South Africa
Categories
List of GM platforms
List of GM engines
List of GM factories
List of GM VIN codes
GM vehicles by brand
EPA 2004 fuel economy report (General Motors)
Tribrid
External links
Offical
Official Website
Official Website of GM Europe
GM's Corporate Blogs: Fastlane and FYI
GMability, GM's corporate responsibility site
GM's K-12 education site
Corporate history
Unofficial
Cheers and Gears - GM Enthusiast and News Forum
GMInsideNews - GM Enthusiast and News Forum
GM Photo Galleries
GM picture galleries
GM 2006 VIN chart.
Ghandhara Industries Limited
Gallery of General Motors Advertisements
UAW Death Watch - News and Discussion regarding the UAW at GM and other manufactures
References
Honda and Toyota
I saw this on a web site.
I buy Honda & Toyota. I could car less about status. I started buying
them because they work well and are reliable beyond any American car
I've ever owned. I've owned twice as many Arerican vehicles as
foreign vehicles. That's because the American vehicles did not last
as long and they weren't as reliable. They also didn't function as
well as the Hondas or Toyotas I've purchased. I've owned 4 Toyotas.
The 3rd one I've had since it was new in 1986. It still runs great,
it looks good, it's reliable still and it will get 29 MPG on the
highway. There aren't any high performance cars I'm aware of that
will do that. My last Toyota is a 1994 Toyota 4 WD P/U. It has been
just as reliable as my Supra. I also have a 2006 Honda Civic that
will get better gas mileage than they advertise if I drive it right.
Even my Supra is rated at only 25 MPG on the highway, but I can get 29.
I've never been sorry I switched. I think American cars are much
better than they used to be, but dollar for dollar I haven't been
convinced I want to buy one yet. I did however come close this last
time, but I'm still waiting.
I buy Honda & Toyota. I could car less about status. I started buying
them because they work well and are reliable beyond any American car
I've ever owned. I've owned twice as many Arerican vehicles as
foreign vehicles. That's because the American vehicles did not last
as long and they weren't as reliable. They also didn't function as
well as the Hondas or Toyotas I've purchased. I've owned 4 Toyotas.
The 3rd one I've had since it was new in 1986. It still runs great,
it looks good, it's reliable still and it will get 29 MPG on the
highway. There aren't any high performance cars I'm aware of that
will do that. My last Toyota is a 1994 Toyota 4 WD P/U. It has been
just as reliable as my Supra. I also have a 2006 Honda Civic that
will get better gas mileage than they advertise if I drive it right.
Even my Supra is rated at only 25 MPG on the highway, but I can get 29.
I've never been sorry I switched. I think American cars are much
better than they used to be, but dollar for dollar I haven't been
convinced I want to buy one yet. I did however come close this last
time, but I'm still waiting.
Friday, December 15, 2006
10 Fastest Cars in America
I saw a thing where it had the 10 fastest cars in America and 4 of them are made by GM and 1 isn't made by GM but the engine is made by GM.
The 4 that were made by GM were
Chevrolet Corvette Z06
Cadillac CTS-V
Cadillac STS-V
Cadillac XLR-V
and if they would have counted the regular Corvette there would have been 5 by GM.
The 4 that were made by GM were
Chevrolet Corvette Z06
Cadillac CTS-V
Cadillac STS-V
Cadillac XLR-V
and if they would have counted the regular Corvette there would have been 5 by GM.
Wednesday, December 13, 2006
10 Reason Why You Should Not Buy a Honda
#1. Honda is a Japanese company so when you buy a car from them your money goes to Japan. When you buy a car from GM your money stays in America.
#2. You shouldn't buy a Honda just because you think it is more reliable. Honda does have good lasting vehicles but so does GM. And I have several examples of GM with lots of miles. I have seen many GM's with 1 million miles on them and I have never seen a Honda with 1 million miles.
#3. Don't buy a Honda because you think it is a better value because it is not. You can get a GM for less money because GM has bigger rebates on their vehicles.
#4. Don't buy a Honda because you think it gets better gas mileage. GM has many models that get over 30 MPG and the new Silverado 1500 crew cab 2wd with a V8 gets 22 MPG.
#5. Don't buy a Honda because you think it has better quality. GM vehicles quality keeps getting better and better. They have improved many of their interiors and they are really nice.
#6. GM has many more features then Honda. Such as Onstar, XM radio,etc.
#7. GM has been very important to America and the US auto industry. Honda hasn't
#8. If GM were to go bankrupt it would be a great loss to our military. GM has built many vehicles and other military equipment for America during wars such as World War 1 and 2. GM actually closed their plants and only built military vehicles during the wars. And Honda will not build military vehicles for the US because they are from Japan.
#9. When you buy a Honda you can only buy certain package such as LX, EX models, etc. Where on a GM you can get any option you want. Like if you want 1 option but not another that is the way you can get it. It is not in package where you can't choose each individual option. So a GM gives the customer more choices.
#10. GM has a better warranty then Honda. GM has a 5 year/ 100,00 mile warranty and Honda doesn't.
#2. You shouldn't buy a Honda just because you think it is more reliable. Honda does have good lasting vehicles but so does GM. And I have several examples of GM with lots of miles. I have seen many GM's with 1 million miles on them and I have never seen a Honda with 1 million miles.
#3. Don't buy a Honda because you think it is a better value because it is not. You can get a GM for less money because GM has bigger rebates on their vehicles.
#4. Don't buy a Honda because you think it gets better gas mileage. GM has many models that get over 30 MPG and the new Silverado 1500 crew cab 2wd with a V8 gets 22 MPG.
#5. Don't buy a Honda because you think it has better quality. GM vehicles quality keeps getting better and better. They have improved many of their interiors and they are really nice.
#6. GM has many more features then Honda. Such as Onstar, XM radio,etc.
#7. GM has been very important to America and the US auto industry. Honda hasn't
#8. If GM were to go bankrupt it would be a great loss to our military. GM has built many vehicles and other military equipment for America during wars such as World War 1 and 2. GM actually closed their plants and only built military vehicles during the wars. And Honda will not build military vehicles for the US because they are from Japan.
#9. When you buy a Honda you can only buy certain package such as LX, EX models, etc. Where on a GM you can get any option you want. Like if you want 1 option but not another that is the way you can get it. It is not in package where you can't choose each individual option. So a GM gives the customer more choices.
#10. GM has a better warranty then Honda. GM has a 5 year/ 100,00 mile warranty and Honda doesn't.
Joke for Now.
But if ye will not do so, behold, ye have sinned against the LORD: and be sure your sin will find you out. Num 32:23
John invited his mother over for dinner. During the meal, his mother couldn't help noticing how beautiful John's roommate was. She had long been suspicious of a relationship between John and his roommate and this only made her more curious.
Over the course of the evening, while watching the two interact, she started to wonder if there was more between John and the roommate than met the eye. Reading his mom's thoughts, John volunteered, "I know what you must be thinking, but I assure you, Julie and I are just roommates."
About a week later, Julie came to John and said, "Ever since your mother came to dinner, I've been unable to find the beautiful silver gravy ladle. You don't suppose she took it, do you?" John said, "Well, I doubt it, but I'll write her a letter just to be sure." So he sat down and wrote:
"Dear Mother, I'm not saying you 'did' take a gravy ladle from my house, and I'm not saying you 'did not' take a gravy ladle. But the fact remains that one has been missing ever since you were here for dinner."
Several days later, John received a letter from his mother which read:
"Dear Son, I'm not saying that you 'do' sleep with Julie, and I'm not saying that you 'do not' sleep with Julie. But the fact remains that if she was sleeping in her own bed, she would have found the gravy ladle by now.Love, Mom"
John invited his mother over for dinner. During the meal, his mother couldn't help noticing how beautiful John's roommate was. She had long been suspicious of a relationship between John and his roommate and this only made her more curious.
Over the course of the evening, while watching the two interact, she started to wonder if there was more between John and the roommate than met the eye. Reading his mom's thoughts, John volunteered, "I know what you must be thinking, but I assure you, Julie and I are just roommates."
About a week later, Julie came to John and said, "Ever since your mother came to dinner, I've been unable to find the beautiful silver gravy ladle. You don't suppose she took it, do you?" John said, "Well, I doubt it, but I'll write her a letter just to be sure." So he sat down and wrote:
"Dear Mother, I'm not saying you 'did' take a gravy ladle from my house, and I'm not saying you 'did not' take a gravy ladle. But the fact remains that one has been missing ever since you were here for dinner."
Several days later, John received a letter from his mother which read:
"Dear Son, I'm not saying that you 'do' sleep with Julie, and I'm not saying that you 'do not' sleep with Julie. But the fact remains that if she was sleeping in her own bed, she would have found the gravy ladle by now.Love, Mom"
Cadillac: Since 1902
Cadillac: Through the Ages
1902: The Birth of a Legend
At the dawn of the twentieth century, Cadillac is born. Henry Leland, a master mechanic and entrepreneur, takes the reins and names the new company after a legendary ancestor, Antoine de la Mothe Cadillac, the founder of Detroit.
1902: Off to a Historic Start
To herald the birth of the new company, a Crest is chosen based on the historic coat of arms of the Cadillac family. It makes its first appearance as a decal on the company's first vehicle, Model A Runabout. Described as "just good all over" in the company's first ad, the single-cylinder Model A introduces technology that's ahead of its time. In fact, some of its features, such as rack-and-pinion steering and variable intake-valve timing, can still be found in the most advanced cars over a century later.
1908: Setting the Standard
A few years after producing their first four-cylinder engine, Cadillac makes automotive history again by demonstrating the complete interchangeability of its precision parts. The accomplishment doesn't go unnoticed. It lays the foundation for modern mass production, and Cadillac is awarded the prestigious Dewar Trophy by the Royal Automobile Club of England. To reflect this great honor, the company Crest proudly bears the slogan "Standard of the World".
1909: Quality before Quantity
In a bold move that will shape the course of company history, Cadillac turns down the temptation of volume sales and devotes its energies to crafting the finest automobile imaginable. In the same year, Cadillac produces the first closed bodywork vehicles (limousines) and is acquired by the new General Motors Company.
1912: Cranky No More
Cadillac debuts "the car with no crank". The Model Thirty is the first production car to feature an electric self-starter, ignition and lighting. It brings the Dewar trophy back to Detroit, making Cadillac the only car manufacturer to claim the distinction twice.
Operating the crank was physically demanding at best and mortally dangerous at worst. Breaking one's arm or jaw while cranking was not uncommon. In fact, the word "cranky" was coined to describe it. By getting rid of the cumbersome contraption, Cadillac opens up the driving experience to women and those of slight build.
1916-18: Officer Class
Progressive technology, like thermostatic cooling and tilt-beam headlights for night driving, make the Cadillac the standard car issued to U.S. Army officers in World War I.
1920: Changing the Script
The roaring twenties inspire far-reaching changes in the company's lineup of cars. While innovations such as the windshield wiper and rearview mirror further Cadillac's reputation for excellence, the company responds to the extravagance of the times by directing more attention to automotive bodies, styling and luxury.
1924: The Smooth Operator
Cadillac unveils the fully balanced engine, a major evolution in engine design, which vastly improves the smoothness of the V-8. In the same year, the company also pioneers the use of lacquer paint, offering customers over 500 color combinations to choose from at a time when most competitors still offer only a single shade of black.
1930: Firing on All 16 Cylinders
Cadillac kicks off the thirties by raising the bar yet again with the world's first V-type 16-cylinder engine in a passenger car. In the words of a reviewer of the time, the V-16 was "so smooth and quiet throughout its range as to make it seem incredible that the car is actually being propelled by exploding gases." A V-12 version of the vehicle is produced later that year.
1938: Sun Sign
Cadillac makes the sunroof a part of the American vocabulary. Another first.
1942-45: Battle Ready
Shortly after Pearl Harbor, Cadillac discontinues car production and devotes its resources to the war effort. V-8 engines, transmissions and power units are successfully used in M-5 light tanks and M-8 Howitzer Motor Carriages, helping the company live up to its slogan "Famous in Peace - Distinguished in Battle!"
1950: Racing Ahead
Cadillac embraces the post-war boom with open arms. In 1950 and 1951, car production exceeds 100,000 vehicles a year, almost double the number in prewar years. As an added bonus, V-8-powered cars do the company proud by finishing third, tenth, and eleventh at the 24 Hours of Le Mans, one of the most grueling races in the world.
1954: Safely in the Lead
Cadillac sets the course for the rest of the decade by becoming the first manufacturer to provide standard power steering on its entire fleet of automobiles. Not known for resting on its laurels, the company follows this up with a string of safety innovations, including an "autotronic eye" which dims headlamps automatically.
1959: Tails, You Win
Tail fins reach their highest expression with the Eldorado Convertible. By the end of the decade, they have secured their place as one of the definitive icons of the fifties.
1960-63: Making Strides
Cadillac continues to make technological and stylistic strides in the sixties. Self-adjusting brakes are adopted at the beginning of the decade. With regards to the emblem, the Wreath is introduced to complement the Crest, and the new Wreathed Crest makes its first appearance on a 1963 Eldorado.
1963-66: Stepping into the Comfort Zone
The company redefines luxury in 1964 with Comfort Control, the industry's first thermostatically regulated heating, venting and air conditioning system. Over the next few years, automatically turned headlamps, front seat belts, variable-ratio power steering, electric seat warmers and stereo radio are introduced in rapid succession.
1970: Living Large
Cadillac inaugurates the seventies by unveiling the largest production passenger car in the world, the 400 hp, 8.2L engine Eldorado. Its completely redesigned axle boasts the highest torque capacity of any passenger car available. At this point, it is no longer necessary to emphasize the V-8, and as a result, the "V" is dropped from the emblem after almost 25 years of continuous use.
1975-78: Leading the Pack
The company continues to lead the pack with innovations. Specifically, Cadillac is the first to provide electronically fuel-injected engines in production cars. The company also pioneers the use of air cushion restraints (air bags) for passenger safety and catalytic converters to lower emissions. In 1978, the Seville ushers in the era of the computerized automobile with an onboard microprocessor in its digital display.
1984: The Key to Satisfaction
The company's long tradition of customer service enters a new phase. The Gold Key Delivery System introduces standardized procedures for the delivery of newly purchased vehicles, such as inspections, ride-and-drive demonstrations and walk-around tutorials. The company's efforts are recognized a few years later when J.D. Power rates Cadillac number one in sales satisfaction.
1990: Traction Hero
Cadillac swerves back into the spotlight with the first Traction Control system in America, and offers it as a standard feature on the Cadillac Allante.
1992: Power Player
The powerplant of the future makes its debut. The 32-valve Northstar V-8 engine introduces 16 patented advancements, such as a "limp home" feature that enables the engine to run without coolant for 50 miles, and a unique induction system for near-perfect fuel distribution. Beyond exhilaration, it inspires the company to chart a new course.
The Cadillac Seville is Motor Trend's "Car of the Year", thanks to features such as all-electronically controlled powertrain, traction control, anti-lock brakes and speed-sensitive suspension.
2002: Show Stopper
Based on the F-22 Stealth aircraft, Cadillac's 100th anniversary show car, the super-sleek Cien, wins the Best Concept Award at the 2002 North American International Auto Show. Beyond futuristic looks, the Cien is equipped with the next generation of performance and communication systems, including a 7.5L Northstar XV12 powerplant which generates a mind boggling 750 hp.
2002-04: An Anniversary to Remember
To coincide with the company's 100th anniversary, the new company Crest adorns the new Cadillac models. From the racecar-bred rear-wheel drive CTS, the first of the new releases, to the versatile XLR and SRX, the new line-up reinterprets performance, utility and style for the new millennium.
1902: The Birth of a Legend
At the dawn of the twentieth century, Cadillac is born. Henry Leland, a master mechanic and entrepreneur, takes the reins and names the new company after a legendary ancestor, Antoine de la Mothe Cadillac, the founder of Detroit.
1902: Off to a Historic Start
To herald the birth of the new company, a Crest is chosen based on the historic coat of arms of the Cadillac family. It makes its first appearance as a decal on the company's first vehicle, Model A Runabout. Described as "just good all over" in the company's first ad, the single-cylinder Model A introduces technology that's ahead of its time. In fact, some of its features, such as rack-and-pinion steering and variable intake-valve timing, can still be found in the most advanced cars over a century later.
1908: Setting the Standard
A few years after producing their first four-cylinder engine, Cadillac makes automotive history again by demonstrating the complete interchangeability of its precision parts. The accomplishment doesn't go unnoticed. It lays the foundation for modern mass production, and Cadillac is awarded the prestigious Dewar Trophy by the Royal Automobile Club of England. To reflect this great honor, the company Crest proudly bears the slogan "Standard of the World".
1909: Quality before Quantity
In a bold move that will shape the course of company history, Cadillac turns down the temptation of volume sales and devotes its energies to crafting the finest automobile imaginable. In the same year, Cadillac produces the first closed bodywork vehicles (limousines) and is acquired by the new General Motors Company.
1912: Cranky No More
Cadillac debuts "the car with no crank". The Model Thirty is the first production car to feature an electric self-starter, ignition and lighting. It brings the Dewar trophy back to Detroit, making Cadillac the only car manufacturer to claim the distinction twice.
Operating the crank was physically demanding at best and mortally dangerous at worst. Breaking one's arm or jaw while cranking was not uncommon. In fact, the word "cranky" was coined to describe it. By getting rid of the cumbersome contraption, Cadillac opens up the driving experience to women and those of slight build.
1916-18: Officer Class
Progressive technology, like thermostatic cooling and tilt-beam headlights for night driving, make the Cadillac the standard car issued to U.S. Army officers in World War I.
1920: Changing the Script
The roaring twenties inspire far-reaching changes in the company's lineup of cars. While innovations such as the windshield wiper and rearview mirror further Cadillac's reputation for excellence, the company responds to the extravagance of the times by directing more attention to automotive bodies, styling and luxury.
1924: The Smooth Operator
Cadillac unveils the fully balanced engine, a major evolution in engine design, which vastly improves the smoothness of the V-8. In the same year, the company also pioneers the use of lacquer paint, offering customers over 500 color combinations to choose from at a time when most competitors still offer only a single shade of black.
1930: Firing on All 16 Cylinders
Cadillac kicks off the thirties by raising the bar yet again with the world's first V-type 16-cylinder engine in a passenger car. In the words of a reviewer of the time, the V-16 was "so smooth and quiet throughout its range as to make it seem incredible that the car is actually being propelled by exploding gases." A V-12 version of the vehicle is produced later that year.
1938: Sun Sign
Cadillac makes the sunroof a part of the American vocabulary. Another first.
1942-45: Battle Ready
Shortly after Pearl Harbor, Cadillac discontinues car production and devotes its resources to the war effort. V-8 engines, transmissions and power units are successfully used in M-5 light tanks and M-8 Howitzer Motor Carriages, helping the company live up to its slogan "Famous in Peace - Distinguished in Battle!"
1950: Racing Ahead
Cadillac embraces the post-war boom with open arms. In 1950 and 1951, car production exceeds 100,000 vehicles a year, almost double the number in prewar years. As an added bonus, V-8-powered cars do the company proud by finishing third, tenth, and eleventh at the 24 Hours of Le Mans, one of the most grueling races in the world.
1954: Safely in the Lead
Cadillac sets the course for the rest of the decade by becoming the first manufacturer to provide standard power steering on its entire fleet of automobiles. Not known for resting on its laurels, the company follows this up with a string of safety innovations, including an "autotronic eye" which dims headlamps automatically.
1959: Tails, You Win
Tail fins reach their highest expression with the Eldorado Convertible. By the end of the decade, they have secured their place as one of the definitive icons of the fifties.
1960-63: Making Strides
Cadillac continues to make technological and stylistic strides in the sixties. Self-adjusting brakes are adopted at the beginning of the decade. With regards to the emblem, the Wreath is introduced to complement the Crest, and the new Wreathed Crest makes its first appearance on a 1963 Eldorado.
1963-66: Stepping into the Comfort Zone
The company redefines luxury in 1964 with Comfort Control, the industry's first thermostatically regulated heating, venting and air conditioning system. Over the next few years, automatically turned headlamps, front seat belts, variable-ratio power steering, electric seat warmers and stereo radio are introduced in rapid succession.
1970: Living Large
Cadillac inaugurates the seventies by unveiling the largest production passenger car in the world, the 400 hp, 8.2L engine Eldorado. Its completely redesigned axle boasts the highest torque capacity of any passenger car available. At this point, it is no longer necessary to emphasize the V-8, and as a result, the "V" is dropped from the emblem after almost 25 years of continuous use.
1975-78: Leading the Pack
The company continues to lead the pack with innovations. Specifically, Cadillac is the first to provide electronically fuel-injected engines in production cars. The company also pioneers the use of air cushion restraints (air bags) for passenger safety and catalytic converters to lower emissions. In 1978, the Seville ushers in the era of the computerized automobile with an onboard microprocessor in its digital display.
1984: The Key to Satisfaction
The company's long tradition of customer service enters a new phase. The Gold Key Delivery System introduces standardized procedures for the delivery of newly purchased vehicles, such as inspections, ride-and-drive demonstrations and walk-around tutorials. The company's efforts are recognized a few years later when J.D. Power rates Cadillac number one in sales satisfaction.
1990: Traction Hero
Cadillac swerves back into the spotlight with the first Traction Control system in America, and offers it as a standard feature on the Cadillac Allante.
1992: Power Player
The powerplant of the future makes its debut. The 32-valve Northstar V-8 engine introduces 16 patented advancements, such as a "limp home" feature that enables the engine to run without coolant for 50 miles, and a unique induction system for near-perfect fuel distribution. Beyond exhilaration, it inspires the company to chart a new course.
The Cadillac Seville is Motor Trend's "Car of the Year", thanks to features such as all-electronically controlled powertrain, traction control, anti-lock brakes and speed-sensitive suspension.
2002: Show Stopper
Based on the F-22 Stealth aircraft, Cadillac's 100th anniversary show car, the super-sleek Cien, wins the Best Concept Award at the 2002 North American International Auto Show. Beyond futuristic looks, the Cien is equipped with the next generation of performance and communication systems, including a 7.5L Northstar XV12 powerplant which generates a mind boggling 750 hp.
2002-04: An Anniversary to Remember
To coincide with the company's 100th anniversary, the new company Crest adorns the new Cadillac models. From the racecar-bred rear-wheel drive CTS, the first of the new releases, to the versatile XLR and SRX, the new line-up reinterprets performance, utility and style for the new millennium.
Tuesday, December 12, 2006
GMC Acadia
First Drive: 2007 GMC Acadia - Previews
A refined crossover that outperforms the truck-like Yukon in everything except towing.BY MARK GILLIES, December 2006
Until now, General Motors has put most of its SUV eggs in the traditional body-on-frame basket. But beginning late December, the General will sell full-size crossover SUVs in GMC dealerships. (The Saturn Outlook and Buick Enclave versions will follow shortly, with a Chevrolet likely to follow at a later date.) These are all based on the so-called Lambda architecture, which is available in front- or all-wheel drive and uses car-like unit-body construction. The first of them we got our hands on is the GMC Acadia, which goes on sale in front-drive SLE form for $29,990. The fully loaded all-wheel-drive Acadia SLT-2 that we drove had a sticker of $44,985. Depending on configuration, the Acadia seats seven or eight passengers, in three rows of seats.
Powertrain: There are no choices
The Acadia—as well as the Buick and Saturn versions—are available at launch with one powertrain: a 3.6-liter, dual-overhead cam, 24-valve V-6 engine that employs variable valve timing, mated to a six-speed automatic transmission. The engine makes 275 horsepower at 6600 rpm and 251 pound feet of torque at 3200 rpm.
These are not petite utes
The Acadia is a large beast, with a 118.9-inch wheelbase and a 67.3-inch track. The vehicle has an independent suspension at all four corners, with struts, lower control arms and an anti-roll bar at the front, and an H-arm and coil spring rear layout. Power-assisted rack-and-pinion steering is standard on the SLE, with a variable-effort system on SLT models. Acadias are equipped with 18-inch wheels and tires, with 19-inch versions available at extra cost. Base Acadias have front-wheel drive: pony up around $2000 more, and there’s an all-wheel-drive system that uses a clutch pack to apportion torque between the front and rear wheels, depending on vehicle speed, throttle position, and road conditions. Acadias can tow up to 4500 pounds if buyers specify the optional $425 trailering package.
Stability control comes standard
The Acadia has the full complement of airbags that now seem to be de rigueur: dual front airbags for the driver and passenger, seat side-mounted front-row airbags, and full-length curtain airbags for all three rows of passengers. Before you get yourself into a situation where the airbags come to the rescue, GMC places a lot of emphasis on the Acadia’s dynamic safety features, such as handling that’s more car-like than a traditional SUV’s, its four-wheel anti-lock disc brakes, and the standard StabiliTrak stability-control system that incorporates rollover mitigation.
Interior:
More accommodating than a Yukon’sThe first thing you’ll notice about the interior of the Acadia is that it’s huge, with more usable space than GMC’s traditional full-size truck, the Yukon. There are three rows of seats in two configurations: standard second-row captain’s chairs for two passengers, or an available split/folding second-row bench that accommodates three people. The rear bench takes three passengers, giving seating for seven or eight. The third-row cushion is a bit low for grown-ups, but kids are unlikely to complain—especially if you shut them up by ordering the DVD entertainment system. It’s also way better than the Yukon’s hopeless third row. With the captain’s chairs, access to the third row is excellent.Whether you order the bench or the captain’s chairs, the center row seats slide fore and aft. The second- and third-row seats fold to give a flat load area, one that varies between 20 cubic feet with the third row in place to 117 cubic feet with the second- and third rows stowed. There’s 69 cu ft of space behind the second-row seats.
The interior design is attractive, but the materials aren’t quite as upscale as GM would have people believe. The chrome plastic trim on the air vents looks, well, like plastic chrome, and there is an awful lot of hard plastic on display. Against that, head- and legroom are exemplary in the first two rows.
A sea of options
In typical GM fashion, the base Acadia is pretty basic. A six-speaker audio system that plays CDs and MP3s is standard, along with remote keyless entry and the sliding middle-row seats. Power locks, windows, and mirrors are also included, but if you want tri-zone climate control, rear audio controls, a leather-wrapped steering wheel with audio controls, and heated, leather-covered power front seats, then you have to go for the SLT-1 trim package. This starts at $33,990 in front-drive guise. The SLT-2, which runs at $36,105, adds XM Satellite radio, rear park assist, a power rear liftgate, and remote start.
Stand-alone options include a Panasonic DVD entertainment system ($1295); a touch-screen navigation system ($2145); the so-called dual skyscape sunroof that features a conventional sliding glass sunroof over the front-seat occupants and a glass panel over the middle row ($1300—ouch!); nineteen-inch bright-finish wheels ($1295); High Intensity Discharge headlamps ($500); and a head-up system that projects information onto the windshield ($350). The pricing of some of these features is BMW-esque, which is a good thing only for GM’s bottom line.
No slop behind the wheel
For anyone used to the sloppy road manners of full-size truck-based SUVs, the Acadia is a revelation. The steering is precise and accurate, the handling is poised, body control in the twisties is excellent, and the ride is well controlled and supple. Head toss is minimal compared with, say, a GMC Yukon. The brakes have a firm pedal feel, and are able to woe the 5000-pound Acadia with aplomb.
That weight explains why the Acadia feels a bit of a slug at certain speeds on the highway. We expect a 0-to-60-mph time around eight seconds, which is decent, but the transmission starts hunting at 80 mph on the highway when even slight grades are encountered. The V-6 engine is reasonably muted at low speed, but get into the throttle hard for passing at speed and the engine becomes intrusive. And the driver has to really get into the throttle—tip-in is way too stiff, unusual on an American vehicle. The new six-speed transmission is quite refined, but manual shifting is effected by a button on the shift lever, which isn’t the most intuitive way to achieve this.
How does it stack up?
The Acadia is a fine large crossover SUV: good looking, spacious, and nice to drive, too. At $45,000 fully loaded, it’s straying into competition with some smaller luxury trucks, such as the Mercedes ML350 and Volvo XC90, but if a buyer can keep the tag in the mid- to high $30,000 bracket, it offers a lot of vehicle for the money. It gives more space and handles better than a Honda Pilot, for instance, and is a much more pleasing vehicle to drive than GM’s full-size body-on-frame SUVs, the GMC Yukon and Chevrolet Tahoe. While critics argue that GM needs a smaller crossover SUV more urgently than a full-size version, the Acadia is certainly worth a look if you’re in the market for a family hauler.
A refined crossover that outperforms the truck-like Yukon in everything except towing.BY MARK GILLIES, December 2006
Until now, General Motors has put most of its SUV eggs in the traditional body-on-frame basket. But beginning late December, the General will sell full-size crossover SUVs in GMC dealerships. (The Saturn Outlook and Buick Enclave versions will follow shortly, with a Chevrolet likely to follow at a later date.) These are all based on the so-called Lambda architecture, which is available in front- or all-wheel drive and uses car-like unit-body construction. The first of them we got our hands on is the GMC Acadia, which goes on sale in front-drive SLE form for $29,990. The fully loaded all-wheel-drive Acadia SLT-2 that we drove had a sticker of $44,985. Depending on configuration, the Acadia seats seven or eight passengers, in three rows of seats.
Powertrain: There are no choices
The Acadia—as well as the Buick and Saturn versions—are available at launch with one powertrain: a 3.6-liter, dual-overhead cam, 24-valve V-6 engine that employs variable valve timing, mated to a six-speed automatic transmission. The engine makes 275 horsepower at 6600 rpm and 251 pound feet of torque at 3200 rpm.
These are not petite utes
The Acadia is a large beast, with a 118.9-inch wheelbase and a 67.3-inch track. The vehicle has an independent suspension at all four corners, with struts, lower control arms and an anti-roll bar at the front, and an H-arm and coil spring rear layout. Power-assisted rack-and-pinion steering is standard on the SLE, with a variable-effort system on SLT models. Acadias are equipped with 18-inch wheels and tires, with 19-inch versions available at extra cost. Base Acadias have front-wheel drive: pony up around $2000 more, and there’s an all-wheel-drive system that uses a clutch pack to apportion torque between the front and rear wheels, depending on vehicle speed, throttle position, and road conditions. Acadias can tow up to 4500 pounds if buyers specify the optional $425 trailering package.
Stability control comes standard
The Acadia has the full complement of airbags that now seem to be de rigueur: dual front airbags for the driver and passenger, seat side-mounted front-row airbags, and full-length curtain airbags for all three rows of passengers. Before you get yourself into a situation where the airbags come to the rescue, GMC places a lot of emphasis on the Acadia’s dynamic safety features, such as handling that’s more car-like than a traditional SUV’s, its four-wheel anti-lock disc brakes, and the standard StabiliTrak stability-control system that incorporates rollover mitigation.
Interior:
More accommodating than a Yukon’sThe first thing you’ll notice about the interior of the Acadia is that it’s huge, with more usable space than GMC’s traditional full-size truck, the Yukon. There are three rows of seats in two configurations: standard second-row captain’s chairs for two passengers, or an available split/folding second-row bench that accommodates three people. The rear bench takes three passengers, giving seating for seven or eight. The third-row cushion is a bit low for grown-ups, but kids are unlikely to complain—especially if you shut them up by ordering the DVD entertainment system. It’s also way better than the Yukon’s hopeless third row. With the captain’s chairs, access to the third row is excellent.Whether you order the bench or the captain’s chairs, the center row seats slide fore and aft. The second- and third-row seats fold to give a flat load area, one that varies between 20 cubic feet with the third row in place to 117 cubic feet with the second- and third rows stowed. There’s 69 cu ft of space behind the second-row seats.
The interior design is attractive, but the materials aren’t quite as upscale as GM would have people believe. The chrome plastic trim on the air vents looks, well, like plastic chrome, and there is an awful lot of hard plastic on display. Against that, head- and legroom are exemplary in the first two rows.
A sea of options
In typical GM fashion, the base Acadia is pretty basic. A six-speaker audio system that plays CDs and MP3s is standard, along with remote keyless entry and the sliding middle-row seats. Power locks, windows, and mirrors are also included, but if you want tri-zone climate control, rear audio controls, a leather-wrapped steering wheel with audio controls, and heated, leather-covered power front seats, then you have to go for the SLT-1 trim package. This starts at $33,990 in front-drive guise. The SLT-2, which runs at $36,105, adds XM Satellite radio, rear park assist, a power rear liftgate, and remote start.
Stand-alone options include a Panasonic DVD entertainment system ($1295); a touch-screen navigation system ($2145); the so-called dual skyscape sunroof that features a conventional sliding glass sunroof over the front-seat occupants and a glass panel over the middle row ($1300—ouch!); nineteen-inch bright-finish wheels ($1295); High Intensity Discharge headlamps ($500); and a head-up system that projects information onto the windshield ($350). The pricing of some of these features is BMW-esque, which is a good thing only for GM’s bottom line.
No slop behind the wheel
For anyone used to the sloppy road manners of full-size truck-based SUVs, the Acadia is a revelation. The steering is precise and accurate, the handling is poised, body control in the twisties is excellent, and the ride is well controlled and supple. Head toss is minimal compared with, say, a GMC Yukon. The brakes have a firm pedal feel, and are able to woe the 5000-pound Acadia with aplomb.
That weight explains why the Acadia feels a bit of a slug at certain speeds on the highway. We expect a 0-to-60-mph time around eight seconds, which is decent, but the transmission starts hunting at 80 mph on the highway when even slight grades are encountered. The V-6 engine is reasonably muted at low speed, but get into the throttle hard for passing at speed and the engine becomes intrusive. And the driver has to really get into the throttle—tip-in is way too stiff, unusual on an American vehicle. The new six-speed transmission is quite refined, but manual shifting is effected by a button on the shift lever, which isn’t the most intuitive way to achieve this.
How does it stack up?
The Acadia is a fine large crossover SUV: good looking, spacious, and nice to drive, too. At $45,000 fully loaded, it’s straying into competition with some smaller luxury trucks, such as the Mercedes ML350 and Volvo XC90, but if a buyer can keep the tag in the mid- to high $30,000 bracket, it offers a lot of vehicle for the money. It gives more space and handles better than a Honda Pilot, for instance, and is a much more pleasing vehicle to drive than GM’s full-size body-on-frame SUVs, the GMC Yukon and Chevrolet Tahoe. While critics argue that GM needs a smaller crossover SUV more urgently than a full-size version, the Acadia is certainly worth a look if you’re in the market for a family hauler.
Sunday, December 10, 2006
2007 Chevy Silverado Pics
Here are some links to some websites where you can look at the all new 2007 Silverado. I have to say this is a really nice truck. I have looked at a bunch of them and they are great trucks. And this past week I actually got to sit in a bunch of them and the interior is excellent. So everybody go out to your local Chevy dealership and check them out.
Photo Gallery: Silverado: Trucks: Chevrolet
Car and Driver: Car and Driver Photo Gallery
Photo Gallery: Silverado: Trucks: Chevrolet
Car and Driver: Car and Driver Photo Gallery
Friday, December 08, 2006
2007 Chevy Silverado
First Drive: 2007 Chevrolet Silverado - Previews
A smart, well-dressed, all-American superhero has just arrived to save GM. And it ain’t Bob Lutz. BY STEVE SILER, November 2006 ( Car and Driver Magazine)
When the going gets tough—as in navigating nasty, washed-out roads, hauling hay through a lumpy field, or pulling a four-ton trailer up a mountain pass—it’s nice to have an unflappable full-size truck. And certainly, when the going gets tough for the world’s most prominent automaker that is bleeding market share and money, it’s really nice to have a stellar profit generator ready to plug at least some of the flowing red ink that has been pouring out of the Renaissance Center and all over the pothole-ridden streets of Detroit.
Different than Sierra in looks only.
Though the Silverado’s “This is our country. This is our truck.” advertising campaign has generated its fair share of controversy, the new Silverado takes few risks in the styling department. The Silverado’s design has a broad, chiseled “face,” which accentuates a broad-shouldered stance and gives the Silverado a powerful and muscular presence. As with the previous generation, most of what comes inside the Silverado is offered on its near-twin, the GMC Sierra (right), but the entire front-end, wide hood, bumpers, front and rear fenders, lamps, cargo box, and tailgate are unique to the Silverado. Common to both trucks are other interesting features such as power rear windows on the extended cab models that drop down into the rear doors, both of which now are double-jointed so as to open to an angle of 170 degrees.
Mechanical bits.
In the beginning, the Silverado will be offered with three cabs, three bed lengths, two drivetrain choices and five engines. Bargain-hunters might go for a 4.3-liter V-6 rated at 195 hp and 260 lb-ft, but a vast majority will be powered by one of three small-block V-8s, starting with an iron-block 4.8-liter V-8 with 295 hp and 305 lb-ft. Next up is a 5.3-liter with a choice of iron or aluminum blocks in both gasoline or flex-fuel flavors. GM claims that eventually, all 5.3s will be made with aluminum blocks, but for now, it’s a matter of production capacity. All four variants put out 315 hp and 338 lb-ft. At the top of the Silverado range is a 6.0-liter V-8 with 367 hp, 375 lb-ft, which, like the 5.3-liter, features Active Fuel Management to shut down four cylinders and save gas when you’re not standing on it. At first, only the Sierra will be offered in decked-out Denali trim, with the 6.2-liter, 400-hp V-8 from the Escalade, but rest assured that Chevy won’t take long to launch an SS model quite with the same innards.
For now, at least, all Silverados come only with a four-speed automatic, which is one of the few things on the new truck that isn’t class-competitive. So how do these translate into capability? Payload capacities range from 1,564 to 2,160 pounds, with trailering capability from 4,300 to a whopping 10,500 pounds. By spring of 2007, the HD (left) versions of the Silverado will be on the market with even more impressive numbers, but for now, we can’t imagine anyone needing more than that out of their light-duty pickups. Equally impressive are the fuel economy numbers, which top 20 mpg on the highway for all but the 6.0-liter.
Just as important to truck buyers is the frame, now fully boxed with hydroformed front sections and additional cross-members with coil-over-shock front suspension and rack-and-pinion steering. StabiliTrak is now standard on crew cab models and available on extended cab models. Other safety systems include head curtain air bags on crew cabs. Two Distinct Interiors.
If you’ve been in a 2007 Tahoe, which features a slick, low-rise dash and wood-grain-trimmed center console between its bucket seats, you’ve been in a Silverado. Or at least one of the Silverado’s interior choices. The other interior features a more horizontal dash and bench seat, as well as more tunneled, retro-look gauges and a cool, two-story glovebox. Both present a terrific seat position that makes it hard to be uncomfortable. Crew cab models feature a huge back seat, while the extended cab’s rear bench is acceptable for the average Joe, but only for “average” trips. One nifty feature is the way the rear benches on both models flip up into the cab wall with one hand to expand the cargo-carrying options.
The Silverado offers the usual smattering of options like leather upholstery and upgraded stereos, plus some less-common ones such as power-opening back glass, a power sunroof, heated washer fluid system, a touch-screen navigation system and rain-sensing windshield wipers. OnStar—which confoundingly was able to track us even when we called from the bottom of a desolate Arizona canyon—is standard and a one-year subscription included.
Driving impressions.
After being relatively impressed with the transformation of GM’s full-size SUVs, we had high expectations of the pickups with which they share so much. They didn’t disappoint. Though we tested only V-8 models, we found all to be smooth and quiet on the highway. Acceleration was impressive with the LTZ’s 6.0-liter V-8. though we remember the day of lighter, smaller trucks when 295 to 315 horsepower—as found in the 4.8- and 5.3-liter V-8s, respectively—would yield much more excitement.
GM went to the unusual length to take us to its proving grounds and let us drive the trucks with the entire competitive set (save the yet-to-be-released 2007 Toyota Tundra) on a closed course. We found the Silverado matched the previous segment-best Nissan in steering precision, transitional grace and engine smoothness. Indeed, both on the road and on the course, the GM trucks garnered unanimous praise. We found body motions to be as well controlled, at least as well as can be expected of a big truck, and at no time did we notice any annoying front-end porpoising or on-road rear-end hop—a common problem, especially with an unloaded bed—at highway speeds. The LTZ’s slightly more aggressive suspension tuning and 20-inch wheels made for the most fun, naturally, but no Silverado could be characterized as sloppy in any way. The solid structure contributed to a vibration-free atmosphere, while stable, responsive brakes matched the rest of the vehicle’s overall solid dynamic character.
Competitive Pricing.
Dozens of cab/bed/drivetrain/trim level combinations are available, with prices strarting around $20K for the base, regular-cab “work truck”. Extended cab models start at $23,605 and rise into the $30K range quickly if you go heavy on the options. Crew cab models are over three grand more at $27,000, and four-wheel drive adds a whopping three grand or so for most models. The range-topping Crew Cab LTZ 4WD starts at $38,990.
Capable Crusader?
So it appears that Chevy has a built a truck with genuine appeal to pretty much any truck buyer, save the most ardent of Ford-o-philes. Now whether the Chevy’s suave superhero can help GM haul the rest of the company into the black again remains to be seen.
A smart, well-dressed, all-American superhero has just arrived to save GM. And it ain’t Bob Lutz. BY STEVE SILER, November 2006 ( Car and Driver Magazine)
When the going gets tough—as in navigating nasty, washed-out roads, hauling hay through a lumpy field, or pulling a four-ton trailer up a mountain pass—it’s nice to have an unflappable full-size truck. And certainly, when the going gets tough for the world’s most prominent automaker that is bleeding market share and money, it’s really nice to have a stellar profit generator ready to plug at least some of the flowing red ink that has been pouring out of the Renaissance Center and all over the pothole-ridden streets of Detroit.
Different than Sierra in looks only.
Though the Silverado’s “This is our country. This is our truck.” advertising campaign has generated its fair share of controversy, the new Silverado takes few risks in the styling department. The Silverado’s design has a broad, chiseled “face,” which accentuates a broad-shouldered stance and gives the Silverado a powerful and muscular presence. As with the previous generation, most of what comes inside the Silverado is offered on its near-twin, the GMC Sierra (right), but the entire front-end, wide hood, bumpers, front and rear fenders, lamps, cargo box, and tailgate are unique to the Silverado. Common to both trucks are other interesting features such as power rear windows on the extended cab models that drop down into the rear doors, both of which now are double-jointed so as to open to an angle of 170 degrees.
Mechanical bits.
In the beginning, the Silverado will be offered with three cabs, three bed lengths, two drivetrain choices and five engines. Bargain-hunters might go for a 4.3-liter V-6 rated at 195 hp and 260 lb-ft, but a vast majority will be powered by one of three small-block V-8s, starting with an iron-block 4.8-liter V-8 with 295 hp and 305 lb-ft. Next up is a 5.3-liter with a choice of iron or aluminum blocks in both gasoline or flex-fuel flavors. GM claims that eventually, all 5.3s will be made with aluminum blocks, but for now, it’s a matter of production capacity. All four variants put out 315 hp and 338 lb-ft. At the top of the Silverado range is a 6.0-liter V-8 with 367 hp, 375 lb-ft, which, like the 5.3-liter, features Active Fuel Management to shut down four cylinders and save gas when you’re not standing on it. At first, only the Sierra will be offered in decked-out Denali trim, with the 6.2-liter, 400-hp V-8 from the Escalade, but rest assured that Chevy won’t take long to launch an SS model quite with the same innards.
For now, at least, all Silverados come only with a four-speed automatic, which is one of the few things on the new truck that isn’t class-competitive. So how do these translate into capability? Payload capacities range from 1,564 to 2,160 pounds, with trailering capability from 4,300 to a whopping 10,500 pounds. By spring of 2007, the HD (left) versions of the Silverado will be on the market with even more impressive numbers, but for now, we can’t imagine anyone needing more than that out of their light-duty pickups. Equally impressive are the fuel economy numbers, which top 20 mpg on the highway for all but the 6.0-liter.
Just as important to truck buyers is the frame, now fully boxed with hydroformed front sections and additional cross-members with coil-over-shock front suspension and rack-and-pinion steering. StabiliTrak is now standard on crew cab models and available on extended cab models. Other safety systems include head curtain air bags on crew cabs. Two Distinct Interiors.
If you’ve been in a 2007 Tahoe, which features a slick, low-rise dash and wood-grain-trimmed center console between its bucket seats, you’ve been in a Silverado. Or at least one of the Silverado’s interior choices. The other interior features a more horizontal dash and bench seat, as well as more tunneled, retro-look gauges and a cool, two-story glovebox. Both present a terrific seat position that makes it hard to be uncomfortable. Crew cab models feature a huge back seat, while the extended cab’s rear bench is acceptable for the average Joe, but only for “average” trips. One nifty feature is the way the rear benches on both models flip up into the cab wall with one hand to expand the cargo-carrying options.
The Silverado offers the usual smattering of options like leather upholstery and upgraded stereos, plus some less-common ones such as power-opening back glass, a power sunroof, heated washer fluid system, a touch-screen navigation system and rain-sensing windshield wipers. OnStar—which confoundingly was able to track us even when we called from the bottom of a desolate Arizona canyon—is standard and a one-year subscription included.
Driving impressions.
After being relatively impressed with the transformation of GM’s full-size SUVs, we had high expectations of the pickups with which they share so much. They didn’t disappoint. Though we tested only V-8 models, we found all to be smooth and quiet on the highway. Acceleration was impressive with the LTZ’s 6.0-liter V-8. though we remember the day of lighter, smaller trucks when 295 to 315 horsepower—as found in the 4.8- and 5.3-liter V-8s, respectively—would yield much more excitement.
GM went to the unusual length to take us to its proving grounds and let us drive the trucks with the entire competitive set (save the yet-to-be-released 2007 Toyota Tundra) on a closed course. We found the Silverado matched the previous segment-best Nissan in steering precision, transitional grace and engine smoothness. Indeed, both on the road and on the course, the GM trucks garnered unanimous praise. We found body motions to be as well controlled, at least as well as can be expected of a big truck, and at no time did we notice any annoying front-end porpoising or on-road rear-end hop—a common problem, especially with an unloaded bed—at highway speeds. The LTZ’s slightly more aggressive suspension tuning and 20-inch wheels made for the most fun, naturally, but no Silverado could be characterized as sloppy in any way. The solid structure contributed to a vibration-free atmosphere, while stable, responsive brakes matched the rest of the vehicle’s overall solid dynamic character.
Competitive Pricing.
Dozens of cab/bed/drivetrain/trim level combinations are available, with prices strarting around $20K for the base, regular-cab “work truck”. Extended cab models start at $23,605 and rise into the $30K range quickly if you go heavy on the options. Crew cab models are over three grand more at $27,000, and four-wheel drive adds a whopping three grand or so for most models. The range-topping Crew Cab LTZ 4WD starts at $38,990.
Capable Crusader?
So it appears that Chevy has a built a truck with genuine appeal to pretty much any truck buyer, save the most ardent of Ford-o-philes. Now whether the Chevy’s suave superhero can help GM haul the rest of the company into the black again remains to be seen.
Thursday, December 07, 2006
More Recalls for Toyota
WASHINGTON (AP) -- Toyota Motor Corp. said Wednesday it would recall more than 200,000 Highlander and RAV4 sport utility vehicles to fix a malfunction with the "check engine" light.
Toyota Motor Sales USA Inc. said its special service campaign involved 60,700 four-cylinder Highlander SUVs from the 2001-2003 model years and 159,100 RAV4s from the 2001-2002 model years.
Toyota said it had received 80 reports of the "check engine" light illuminating inadvertently because of an issue with the vehicle's engine control module. The automaker said the light did not affect the vehicle's operation.
Toyota will notify owners of the problem in mid-December, and dealers will reprogram the module at no charge. Customers with questions can contact the company at (800) 331-4331.
Toyota Motor Sales USA Inc. said its special service campaign involved 60,700 four-cylinder Highlander SUVs from the 2001-2003 model years and 159,100 RAV4s from the 2001-2002 model years.
Toyota said it had received 80 reports of the "check engine" light illuminating inadvertently because of an issue with the vehicle's engine control module. The automaker said the light did not affect the vehicle's operation.
Toyota will notify owners of the problem in mid-December, and dealers will reprogram the module at no charge. Customers with questions can contact the company at (800) 331-4331.
Long Lasting Chevy Trucks
Calvin Vincent
North Dakota
Before 1980 Truck
2,001,000 Miles
Bought this truck new from Mayville Motor Co in Mayville, N.D. in 1978. I have used it in my construction business since then. This unit has pulled equipment on construction trailers and been a work horse for the past 28 years. The trans. was replaced once, the short block twice and the rear end is still original after 2 million miles. I still use it every day. I have had a long-lasting and rewarding experience with my Chevrolet. Thanks Chevy.
CHARLEY ANTON
Georgia
1995 Truck
1,020,066 Miles
This truck was purchased new by a William White and driven from Lawrenceville, GA to Spartanburg, SC to Knoxville to Memphis to Chattanooga and back to Atlanta every weeknight Monday through Friday for many years. He had his oil changed every Friday at a Pennzoil facility and Pennzoil purchased this truck for testimonial purposes when he reached 1 million miles. The engine has had absolutely no repairs and currently is at a Shell Oil facility in Houston, TX. The engine has been disassembled and is on display in the bed of the pickup.
James Zoltenko
Nebraska
1998 Truck
782,684 Miles
In June of 2000, ZFI purchased a used Chevrolet Silverado 1500 with 34,848 miles, from Alexander Motors, Inc. in Superior, Ne. The pickup immediately became part of the ZFI delivery fleet as ZFI 4. ZFI 4 has proven to be extremely dependable and has missed very few delivery days over the past 6 years. What makes the story behind the Chevrolet Silverado so incredible is that to date it has logged over 800,000 miles and the engine has never been touched.
STANLEY WILLIAMS
Texas
1988 Truck
867,532 Miles
I BOUGHT THIS TRUCK NEW IN OCT. 1987 FOR MY WIFE. SHE DROVE IT FOR THE FIRST 107000 MILES. I STARTED DRIVING IT IN JAN. 95. I USE IT IN MY MACHINE SALES BUSINESS AND PERSONAL USE . I CHANGED OUT THE ORIGINAL ENGINE AT 676806 MILES. IT STILL HAS THE ORIGINAL REAR END AND MANY OF THE SAME ENGINE PARTS (PS PUMP, CRUISE CONTROL, FI THROTTLE BODY, ECT). I DRIVE MY TRUCK APPROXIMATELY 3000 MILES EVERY 3 WEEKS. (PUT THAT IN YOUR PIPE AND SMOKE IT FORD OWNERS.)ADDED NOTE: MY WIFES 94 SILVERADO HAS 231157 MILES
Richard Allen
Texas
1989 Truck
652,409 Miles
I bought this truck from Four Stars in Heneritta, Tx. I also married the Woman I bought this truck from and I still have them both. At first my boss paid me mileage for driving it, than I sold the truck to him, and kept driving it as it was my own. Then they retired it to buy a new one and I got mine back. It has been a great truck, the oil gets changed every 3000 to 3500 miles. I have only used Mobil oil from day one.
Jeana Green
Arkansas
2001 Truck
611,656 Miles
I use my 2001 Silverado 2500HD 6.0 V8 4dr crew cab for hot shots/delivery using the bed only. Even I'm surprised that this truck has lasted so long without rebuilds on the motor or transmission. How long will it go?
Lori Boaz
Colorado
2001 Truck
604,582 Miles
I have been very happy with my truck. Dakota,Troubles and I have driven to all but three states. Played in the Pacific and Atlantic,played in the snow,in several states as well as got to chase a few Deer took strolls with an Armadillo in Okahoma. The back seat is my bed and the road is my home. We have met a lot of good people and seen a lot of Gods Beauty. He travels with us everywhere. I plan on getting a million miles plus out of my truck. Dealers everywhere try to sell me a new one . My answer to them is, She's not dead. I know what I have in her so why would I get something I know nothing about.
WISE CHEVROLET
Ohio
1992 Truck
565,519 Miles
THIS CHEVY TRUCK STORY BEGINS 11-12-91, WHEN WINKLE CHEVY IN PAULDING OHIO ORDERED A CHEVROLET CC10903 FOR STOCK. THE VICTORY RED CHEYENNE WAS SHIPPED FROM GM 12-05-91. A VERY BASIC W/T WITH ONLY 2 OPTIONS, A REAR BUMPER FOR $130, AND A $160 SPARE TIRE,ADDED TO A BASE MSRP OF $10600. DESTINATION CHARGES OH $595 PUSHED THE STICKER PRICE TO $11485. AFTER NEARLY 8 MONTHS ON THE LOT OUR W/T WAS DEALER TRADED TO WISE CHEVROLET IN RANDOLPH OHIO. WITH ONLY 208 MILES ON THE ODOMETER IT BECAME THE "NEW" PARTS TRUCK. FAST FOREWARD 14 YEARS AND COUNTLESS PARTS DELIVERIES, THE"OLD"PARTS TRUCK IS STILL IN SERVICE. NOW SHOWING 565,519 MILES ON THE ODOMETER, NO ONE CAN DISPUTE CHEVROLETS CLAIM OF HAVING THE MOST DEPENDABLE LONGEST LASTING TRUCKS ON THE ROAD. ALTHOUGH THE OHIO RUST STARTING TO EAT THE BODY, THE 4.3 V6 IS STILL GOING AND HAS NEVER BEEN APART. A QUALITY CHEVY TRUCK LIKE THIS IS ONE REASON WISE CHEVROLET HAS BEEN IN BUSINESS SINCE 1923. THANK YOU,TIM LONG,WISE CHEVY
North Dakota
Before 1980 Truck
2,001,000 Miles
Bought this truck new from Mayville Motor Co in Mayville, N.D. in 1978. I have used it in my construction business since then. This unit has pulled equipment on construction trailers and been a work horse for the past 28 years. The trans. was replaced once, the short block twice and the rear end is still original after 2 million miles. I still use it every day. I have had a long-lasting and rewarding experience with my Chevrolet. Thanks Chevy.
CHARLEY ANTON
Georgia
1995 Truck
1,020,066 Miles
This truck was purchased new by a William White and driven from Lawrenceville, GA to Spartanburg, SC to Knoxville to Memphis to Chattanooga and back to Atlanta every weeknight Monday through Friday for many years. He had his oil changed every Friday at a Pennzoil facility and Pennzoil purchased this truck for testimonial purposes when he reached 1 million miles. The engine has had absolutely no repairs and currently is at a Shell Oil facility in Houston, TX. The engine has been disassembled and is on display in the bed of the pickup.
James Zoltenko
Nebraska
1998 Truck
782,684 Miles
In June of 2000, ZFI purchased a used Chevrolet Silverado 1500 with 34,848 miles, from Alexander Motors, Inc. in Superior, Ne. The pickup immediately became part of the ZFI delivery fleet as ZFI 4. ZFI 4 has proven to be extremely dependable and has missed very few delivery days over the past 6 years. What makes the story behind the Chevrolet Silverado so incredible is that to date it has logged over 800,000 miles and the engine has never been touched.
STANLEY WILLIAMS
Texas
1988 Truck
867,532 Miles
I BOUGHT THIS TRUCK NEW IN OCT. 1987 FOR MY WIFE. SHE DROVE IT FOR THE FIRST 107000 MILES. I STARTED DRIVING IT IN JAN. 95. I USE IT IN MY MACHINE SALES BUSINESS AND PERSONAL USE . I CHANGED OUT THE ORIGINAL ENGINE AT 676806 MILES. IT STILL HAS THE ORIGINAL REAR END AND MANY OF THE SAME ENGINE PARTS (PS PUMP, CRUISE CONTROL, FI THROTTLE BODY, ECT). I DRIVE MY TRUCK APPROXIMATELY 3000 MILES EVERY 3 WEEKS. (PUT THAT IN YOUR PIPE AND SMOKE IT FORD OWNERS.)ADDED NOTE: MY WIFES 94 SILVERADO HAS 231157 MILES
Richard Allen
Texas
1989 Truck
652,409 Miles
I bought this truck from Four Stars in Heneritta, Tx. I also married the Woman I bought this truck from and I still have them both. At first my boss paid me mileage for driving it, than I sold the truck to him, and kept driving it as it was my own. Then they retired it to buy a new one and I got mine back. It has been a great truck, the oil gets changed every 3000 to 3500 miles. I have only used Mobil oil from day one.
Jeana Green
Arkansas
2001 Truck
611,656 Miles
I use my 2001 Silverado 2500HD 6.0 V8 4dr crew cab for hot shots/delivery using the bed only. Even I'm surprised that this truck has lasted so long without rebuilds on the motor or transmission. How long will it go?
Lori Boaz
Colorado
2001 Truck
604,582 Miles
I have been very happy with my truck. Dakota,Troubles and I have driven to all but three states. Played in the Pacific and Atlantic,played in the snow,in several states as well as got to chase a few Deer took strolls with an Armadillo in Okahoma. The back seat is my bed and the road is my home. We have met a lot of good people and seen a lot of Gods Beauty. He travels with us everywhere. I plan on getting a million miles plus out of my truck. Dealers everywhere try to sell me a new one . My answer to them is, She's not dead. I know what I have in her so why would I get something I know nothing about.
WISE CHEVROLET
Ohio
1992 Truck
565,519 Miles
THIS CHEVY TRUCK STORY BEGINS 11-12-91, WHEN WINKLE CHEVY IN PAULDING OHIO ORDERED A CHEVROLET CC10903 FOR STOCK. THE VICTORY RED CHEYENNE WAS SHIPPED FROM GM 12-05-91. A VERY BASIC W/T WITH ONLY 2 OPTIONS, A REAR BUMPER FOR $130, AND A $160 SPARE TIRE,ADDED TO A BASE MSRP OF $10600. DESTINATION CHARGES OH $595 PUSHED THE STICKER PRICE TO $11485. AFTER NEARLY 8 MONTHS ON THE LOT OUR W/T WAS DEALER TRADED TO WISE CHEVROLET IN RANDOLPH OHIO. WITH ONLY 208 MILES ON THE ODOMETER IT BECAME THE "NEW" PARTS TRUCK. FAST FOREWARD 14 YEARS AND COUNTLESS PARTS DELIVERIES, THE"OLD"PARTS TRUCK IS STILL IN SERVICE. NOW SHOWING 565,519 MILES ON THE ODOMETER, NO ONE CAN DISPUTE CHEVROLETS CLAIM OF HAVING THE MOST DEPENDABLE LONGEST LASTING TRUCKS ON THE ROAD. ALTHOUGH THE OHIO RUST STARTING TO EAT THE BODY, THE 4.3 V6 IS STILL GOING AND HAS NEVER BEEN APART. A QUALITY CHEVY TRUCK LIKE THIS IS ONE REASON WISE CHEVROLET HAS BEEN IN BUSINESS SINCE 1923. THANK YOU,TIM LONG,WISE CHEVY
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