posted by GM Fan on Jul 11

GM_Facebook_pageGeneral Motors is negotiating with Facebook to resume their advertising via the social media platform. GM put on halt their advertising on the website amounting to $10 million a day before the IPO of Facebook. GM is among the biggest advertiser on the site.

The previous withdrawal of the automotive company somehow embarrassed the social media giant and raised some doubts about the benefits of advertisements on Facebook that currently has 800 million registered users across the globe.

The chief executive of GM, Daniel Akerson, met with Facebook COO Sheryl Sandberg and other executives to discuss the possible comeback of the car brand. GM has not made any decision as yet and wants proof of the benefits of Facebook’s paid advertising.

Last May, GM said that the advertising on Facebook has been ineffective, but the brand maintained its presence on the site thru several fan pages. The automotive giant has been spending $10 million every year for the ad placements on Facebook while allotting $30 million for their fan pages. The budget though is just a fraction of what the company spends for their advertisements across the global market amounting to $4 billion.

Facebook is still working hard to convince Wall Street of the effectiveness of their advertisements.

Ford Motor meanwhile has been known as a strong backer of Facebook and has been pouring their budget for ads on the website. Ford has about 10 million followers across the world for its fan pages. The main page alone has more than 1.5 million followers while the Mustang has 4.2 million.

Chrysler also does not plan to stop their ads on Facebook. The Jeep fan page has more than 2.7 million followers while the Dodge page has about 1.3 million. The Chevrolet page is being followed by 1.2 million people; the GMC page by 685,000; and the Buick fan page by 420,000 uses. The corporate page of GM has more than 300,000 followers.

posted by GM Dog on Mar 1

An impressive 23% gain has been officially released by car company General Motors for its January figures. The company’s total sale of about 178,896 cars is an impressive boost when compared to last year’s figures.

General Motors said that their pick up and crossover sales are the strong points that led to the increased figures. According to the press release, the car company’s sales for its fleets have suffered a 7% decrease due to the 11% decline in rental fleet sales. Crossovers increased by 35%, trucks at 34%, and cars at 39%.

According to the vice president of the Sales Operations division in the U.S., Don Johnson, they are optimistic that the month of January has given then a good start for the year. Johnson added that the gains are widespread in all segments with the sales from their new models leading the hike to success.

The combined sales coming from models Silverado HD, Cruze, Chevrolet Equinox, Volt, Regal, Buick LaCrosse, Terrain, GMC Sierrra HD, CTS Coupe, CTS Wagon, and Cadillac SRX have given the car company an impressive 31% increase in gains. In January alone, the retail sales figures have increased by almost 61%.

Due to the high demand for GM models Buick regal, CTS Coupe, and Chevrolet Cruze, the total sales for these passenger car models rose to 15% for January. As for the company’s roster of eco-friendly crossovers, the Chevrolet Equinox has led the 31% increase in total sales. Johnson adds that the company’s average-sized crossovers like the GMC Acadia are also starting to rake in big sales figures because of its appeal to the customers in terms of style, functionality and fuel efficiency.

posted by GM Dog on Oct 1

light trucks GMTwo years from now, General Motors India’s combined business project with China’s SAIC will bring a line of three passenger vehicles and two mini-trucks to India which will bear the Chevrolet brand.  This is what India’s General Motor executive Karl Slym.

Slym explained that in the next three to four years, the popularity of light commercial vehicles will rise up to 24%, a rate wherein a foreseeable market growth is expected and wherein mini trucks in the sub-one ton and one ton categories, can be priced aggressively.

India manufactures a very small quantity of light trucks.  So far, Tata is the only brand who dominates the light truck market by almost 90%.   The others, namely Force Motors Trumpas, Bajaj Auto GC Max, Piaggio Ape, and Mahindra & Mahindra Gio, have small shares in the market.  Soon, General Motors will join in the light trucks markets of India too.

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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 Aug 7

General Motors returns to leasing some of their luxury vehicles after exiting about a year back. The program was recently re-launched to include some models from their 2010 and 2009 fleet. Consumers can check out some units from Cadillac, Buick, Chevrolet, and GMC.

The program is operated in collaboration with U.S. Bank. Pilot runs of the leasing program include vehicles of GM sold in Ohio, Michigan, Connecticut, New Jersey, and New York. The new gen Cadillac SRX is being offered for lease nationally by the bank. The initial run will go through August 31, 2009.

GM was forced to cut their leasing program last year due to the drop in profits. Consumers also showed low demand for vehicles because of the recession. The economy is starting to fix itself and the demand for cars has been up recently. According to statistics that monitors the demand in the leasing market, there was a 22% jump in the market demand for the Escalade of Cadillac. The Enclave from Buick has an 18% rise.

Although GM sales was doing okay without the leasing program, the car manufacturer believes that they have a sector which really needs it. The crossover Cadillac SRX really adds excitement to the luxury leasing program since it is offered nationwide.

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posted by GM Fan on Jul 15

Last weekend, a bankruptcy court judge gives a nod for the sale of assets for the most valuable assets of GM to end bankruptcy protection from the ownership of the government.GM Flag This means that the car manufacturer is a step closer from getting out of bankruptcy.

Robert Gerber, the judge who ruled on the case, described it as a necessary step to prevent the death of a critically ill patient. The court has given a stay of four days which permits a close as early as July 10.

The sale will transfer in essence all of the properties of General Motors to the NGMCO Inc. which was established by the Department of Treasury. NGMCO will be known as General Motors Company once the sale is completed and will operate through the corporate GM and all of its sub brands.

Fritz Henderson will be the CEO of the newly established GM. The cost of operations will also be competitive in terms of its structure with standing agreements with the UAW and CAW, organizations of Auto Workers in United States and Canada, respectively.

The new status of GM will allow it to operate and gain profits at lower volume of productions. GM attributes this foresight to the cleaner debt sheet and better balance sheet post bankruptcy.

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posted by GM Fan on Jul 3

About a week ago, General Motors denied that it will be licensing the Synergy Drive hybrid system of Toyota. Over the weekend, there are rumors that Toyota might be pushing the Prius over to the GM camp and be re-branded wearing a GM badge.

The picture is not that clear especially when one considers the effort of GM in developing the Volt and the Buick crossover. But with the announcement of General Motors that it will be withdrawing from its partnership with Toyota at the NUMMI or New United Motor Manufacturing Incorporated, the move of re-branding the Prius may be a logical move.

The withdrawal was made after a final agreement as to which future product line up should be developed cannot be made between the two parties.

A spokesperson from GM North America informed the press that the joint venture between Toyota and their company has no future units planned for production.

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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 17

The cost of labor may be one of the major factors in the current slump the US auto industry is experiencing. Up to a certain degree, that statement can be true, but without labor there will be no cars. General Motors is looking that the possibilities with the UAW to cut the gap of labor costs versus the non-labor auto producers.

The move is supported by as much as 74% of the union locals and is set to help make the American brands more competitive with the foreign brands of vehicles rolling into the US shores.

The deal with the UAW focuses on the essential elements like decreasing the production cost per unit and explore possibilities on retirement plans. These points will help GM handle its large population of retired workforce and its current wages and benefits for the employees. At present, the changes will affect about 54,000 employees across 46 plants and offices in the United States.

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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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