Archive for the ‘GM’ Category

Tesla to Hold Musk to a Higher Standard for Compensation

No cash or bonuses unless carmaker hits milestones.

by on Jan.23, 2018

Elon Musk won't receive any compensation from Tesla until the EV maker begins hitting select stock and operational milestones.

With Tesla still struggling with serious production problems and a balance sheet that has been sinking deeper into the red, the battery-carmaker said Tuesday that its billionaire founder and CEO Elon Musk won’t be in line for any form of compensation until it reaches stock and operational milestones.

While investors continue to back the company, its shares rebounding sharply since a deeper-than-expected third-quarter loss was announced last autumn, there has been growing concern about the delays in ramping up production of the new Model 3. That has raised concerns the company might have to raise more capital to compensation for its rapid cash burn.

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“Tesla and all of its shareholders” will have to perform “extraordinarily well before Musk is to receive any form of compensation going forward, the company said. But the announcement also took aim at another concern that some investors and analysts have raised in recent months: whether the South African-born Musk would remain onboard. (more…)

GM Escapes $1B Stock Payout in Ignition Case

Judge says trust acted in bad faith.

by on Jan.19, 2018

GM ultimately admitted delaying a necessary recall which eventually involved millions of vehicles.

General Motors just avoided a $1 billion bill, as a New York bankruptcy judge threw out a settlement agreement that would have forced GM to pay $1 billion in stock to owners of cars with defective ignition switches.

The case is part of the automaker’s recall of 2.6 million small cars equipped with faulty ignition switches that resulted in the deaths of 124 people. The vast majority of the cars were produced before GM’s bankruptcy in 2009.

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The automaker’s bad assets were lumped together and considered “old GM,” technically called Motors Liquidation. Wilmington Trust, the M&T Bank Corp. unit that oversees the bankruptcy claims filed against the “old GM” trust, struck the deal to resolve hundreds of personal-injury cases and a class-action suit over millions of vehicles that allegedly lost value due to a series of 2014 recalls. (more…)

FCA Arguing About Viability of Midsize Pickup

Ford joins GM, Toyota and Nissan in booming segment.

by on Jan.19, 2018

CEO Sergio Marchionne said there has been a lot of pushback on the idea of building a midsize pickup truck.

Executives inside what is now Fiat Chrysler Automobiles N.V. have been arguing about building a midsize pickup truck for nearly a decade, FCA CEO Sergio Marchionne told the media this week during a meeting at the North American International Auto Show.

Marchionne told reporters that FCA had not made any decisions on a future midsize pickup even as Ford Motor Co. revealed its new Ford Ranger during the press previews for the NAIAS.

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“We’re still studying it,” said Marchionne, who acknowledge that the midsize segment where the new Ranger will compete with the Chevrolet Colorado, Toyota Tacoma and Nissan Frontier have has come alive in the last couple of years.  (more…)

PSA Lays Out 3-Stage, 10-Year Roadmap for U.S. Return

CEO calls for “100% electrified” line-up by 2025.

by on Jan.19, 2018

PSA CEO Carlos Tavares has been credited with turning around the near-bankrupt French company.

After a 26-year absence from the North American market, French automaker PSA Group is formalizing plans to reenter the market, though in a series of interviews and appearances in Detroit this week, CEO Carlos Tavares made it clear he’s not in a rush.

With the once nearly bankrupt automaker now flying high in most of its other markets, Tavares outlined a three-stage process that will take as much as a decade to complete. In the meantime, he is focusing on several other critical endeavors, including the revival of the Opel/Vauxhall operations PSA purchased from General Motors last year, as well as a plan that call for the company to have 100% of its products electrified by 2025.

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“When we go into a country we try to be really cautious,” Tavares said during a Thursday roundtable with a small group of journalists, one of several meetings he held in connection with the annual North American International Auto Show. The plan for North America is “more frugal, more humble” and will require only “a small investment,” he explained.

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Caddy Chief “Highly Optimistic,” Despite Struggles in U.S.

De Nysschen counting on new crossovers to help reshape the brand.

by on Jan.17, 2018

Cadillac President Johan de Nysschen has had to reshape his product plans to favor SUVs.

Cadillac chief Johan de Nysschen is proving himself to be a “glass full” kind of guy. Despite ongoing struggles in the U.S., he is optimistic General Motors’ luxury brand’s revival is “proceeding according to plan.”

Of course, it helps to know that Caddy is rapidly gaining ground in China, the world’s largest market – which also happens to be generating more sales than the U.S. these days. There’s also the fact that the new XT4, a critically needed new SUV will be in dealer showrooms late this year, with another new product set to roll out every six months through at least the end of 2020.

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“At the conclusion of this first phase of the plan, Cadillac will be armed for the first time with a family of premium crossover vehicles, positioning us well to exploit market preferences,” de Nysschen said during a presentation to the Automotive News World Congress.

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Cadillac Takes Aim at New Record

Division chief says there is still work to be done.

by on Jan.16, 2018

Cadillac President Johan de Nysschen said the luxury division is enjoying strong sales, but still has work to do.

Cadillac expects to set another global sales record in 2018 thanks to the strength of strong sales in China where the brands sales of surpassed more than 200,000 units in just four years.

Johan de Nysschen, General Motors executive vice president and Cadillac Global president, spread that bit of good news during an appearance at the Automotive News World Congress today; however, he added that Cadillac’s transformation is still very much a work in progress.

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U.S. sales dropped last year and Cadillac is still grappling with cultural issues, particularly with its dealer organization in the United States, which has long depended on deals to help move the metal, he acknowledged. Cadillac will continue to face challenges in the U.S. again this year. (more…)

General Motors Expecting Big Profits for 2018

Company expects stable results in North America and China.

by on Jan.16, 2018

GM CEO Mary Barra said she believes that all of the fundamentals that brought profits to GM in 2017 are in place to repeat in 2018.

General Motors Co. expects strong earnings in 2018, as it builds on an expected record 2017 diluted-adjusted EPS as well as previous record earnings in 2016 and 2015.

GM’s bullish forecast comes on the heels of a bullish prediction for 2018 from Fiat Chrysler Automobiles N.V. Chief Sergio Marchionne, who told reporters at the Detroit Auto Show that he expected upward of $9 billion in operating profits from FCA for the full-year even as it falls short of the sales targets laid out in four-year plan set out 2014 when it predicted sales of 7 million units.

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The company’s “product cadence” will help FCA offset any potential weakening in the economic outlook, added Marchionne, who noted the company was bringing out a new version of the Jeep Cherokee and brand-new Jeep Wrangler as well as the new Ram 1500 pickup truck. (more…)

GM CEO Barra Wants to Turn a Profit – Soon – on Electric Vehicles

New platform, high volume and cheaper batteries are key.

by on Jan.15, 2018

General Motors CEO Mary Barra recently signed off on a plan to expand the company's portfolio of electric vehicles.

While there are only a handful of long-range electric vehicles on the market right now, you can expect to see as many as two dozen or more in U.S. showrooms by the end of the decade, and several times as many five years from now.

Virtually every major automaker has promised to “electrify” its line-up, and companies like General Motors, Toyota and Daimler AG plan to put a premium on pure battery-electric models. While that may be great news for green-minded auto buyers, there’s a serious flaw in the equation for auto manufacturers, says Woong-chul Yang, the head of R&D for both Hyundai and its sibling brand Kia.

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“Whenever we sell eco-friendly vehicles we all lose money,” the South Korean executive told TheDetroitBureau.com after presiding over the rollout of the new Kia Niro EV at the Consumer Electronics Show last week. “Even battery vendors are losing money.” (more…)

China Posts Meager Auto Sales Gain in 2017

Sport-ute led the way to small 1.4% increase last year.

by on Jan.12, 2018

Auto sales in China increased marginally for 2017, but they were led by sport-utilites.

China’s auto sales stalled in December and ended 2017 up a meager 1.4% compared with a year ago results as the popularity of SUVs helped to offset falling demand for sedans, the China Association of Automobile Manufacturers said.

With global car makers such as General Motors, BMW, Volkswagen AG, Mercedes-Benz, Toyota and Nissan all reporting solid, but not spectacular, gains during 2017, smaller local brands common to almost every province and international brands such Ford and Hyundai, appeared to suffer the most for the slowdown, which was due in part to the end of special tax credits.

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The growth rate was barely one-tenth the previous year’s 15% rate, which was boosted by a temporary tax cut. (more…)

GM Asks Feds to OK 2019 Launch of Driverless Robo-Cabs

Automaker aims to put as many as 2,500 on the road annually during test program.

by on Jan.12, 2018

GM will use an updated version of this Chevrolet Bolt EV - sans steering wheel and pedals - for the robo-cab test program.

General Motors wants permission from federal regulators to begin testing driverless robo-cabs on public roads, starting in 2019, a move that could position the Detroit automaker as one of the leaders in the development of autonomous vehicle technology.

Company officials said they would roll out as many as 25 vehicles annually under the pilot project, if given approval from the National Highway Traffic Safety Administration. GM ultimately hopes to provide the vehicles to ride-sharing services such as Lyft – in which it is a major investor – as well as its own service, Maven.

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Unlike the autonomous prototypes GM and many competitors are currently testing, the vehicles would be completely driverless and not even be equipped with pedals or a steering wheel. That is something the automaker’s President Dan Ammann called “a major milestone, adding that, “this technology will have a huge impact on the world.”

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