posted by GM Fan on Apr 29

After many years of trying to get out of its own hole, General Motors finally wraps up its payment to the US Treasury and Export Development in Canada. The company was also able to invest $257 million to prepare its Malibu plants in Kansas (primary), Fairfax and Detroit Hamtramck (secondary). GM paid a total of $5.8 billion, with $4.7 billion owing to loans made from the US and the remaining $1.1 billion to Canada. According to Automotive News reports, the US government still holds equity stakes in GM.

The company’s ability to pay back ahead of time is a sign that GM’s financial plan is working, says GM CEO Ed Whitacre. This is definitely good news for GM investors around the globe. Whitacre also stressed on the importance of letting their investors reduce their equity investments.

GM’s sales shot up to 36%, though, compared to the previous year. The popular crossover models including the 5th generation Camaro, the mid-sized Malibu and Lacross, and the range vehicles Equinox, Traverse, Acadia, and SRX all contributed to the increase in sales growth.

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posted by GM Fan on Jun 26

There is no such thing as a smooth exit route from bankruptcy, and auto industry giants like General Motors and Chrysler created some buzz on all media when they declared Chapter 11. Everyone doubts that they will be out of it within the plotted 60 days but it seems GM will be setting up a new shop by 15 July.

According to some reports, there will still be some impediments to overcome before GM can see its new beginning. Most of these processes will not have GM calling the shots— the bankruptcy judge still needs to rule on urgent matters by July 1. The court will hear a call for sale based on Section 363 which will involve putting on the market of the GM assets.

The General Motors is eyeing to form a new company by mid July and try to cut its time in the bankruptcy court. Among the major issues needed to be addressed is the reorganization.

The car manufacturer aims to chop of from its rank hundreds of dealerships across the United States before the end of 2010. The dealers who will remain in business can definitely smile but be ready for tougher demands for their businesses.

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posted by GM Fan on Jun 3

General Motors is planning to build small and fuel efficient cars in the United States that can compete with the B segment of the market as tougher mileage guidelines may be implemented based on the proposal of the Obama administration.

GM executives reveal that it might structure one of its plants that is scheduled to go on idle for the production of the vehicle. The plan will create 1200 jobs, which includes salaried and hourly labor. The car manufacturer has not selected a specific plant yet, but the investment is said to be between $600 million and $700 million.

In the US and around the globe the segment of small cars is the fastest growing market. The GM designers believe that the new generation of small cars will be ahead of the pack in terms of customer appreciation.

The specs of the new car have not been revealed. It will not be like Chevrolet Aveo which is built in South Korea or the Spark which is due for release in 2011. The Volt and the Cruze belong to the segment of larger cars. The company has also shown small, concept cars like the Groove and the Trax.

Cars in the B segment are considered entry-level, small cars. The Toyota has the Yaris in the B class while Honda has Fit, and Ford markets Fiesta. Aveo represents GM in this cluster.

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