Posts Tagged ‘gm news’

Bad Week for Those Suing Takata, GM

Courts side with airbag maker; GM derails $1b settlement over faulty ignition switches.

by on Aug.18, 2017

As many as 18 people are known to have died due to faulty Takata airbag inflators.

Motorists looking for settlements related to two of the biggest safety scandals in recent years were in for some unpleasant surprises this week.

General Motors derailed a deal that could have forced it to provide $1 billion in stock to thousands of plaintiffs suing over the company’s faulty ignition switches which were linked to more than 100 deaths and hundreds of injuries.

The Last Word!

Separately, a Delaware bankruptcy court halted a collection of lawsuits filed against the Japanese auto partsmaker seeking damages related to faulty airbags now linked to as many as 18 deaths and about 180 injuries worldwide – though the suits may continue after a 90-day ordered by Judge Brendan Shannon.

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End of Economic Councils Pose Trouble for Auto Industry

by on Aug.18, 2017

GM CEO Barra enjoyed a laugh with Trump during an automotive summit earlier this year.

Members of another White House advisory council resigned Friday, two days after President Donald Trump tweeted that he was “ending” a pair of economic advisory boards formed after his inauguration. In fact, the CEOs on those boards had voted to disband hours earlier in response to  the controversy over the president’s comments about the rioting in Charlottesville, VA over the weekend.

“General Motors is about unity and inclusion and so am I,” GM Chairman and CEO Mary Barra said, in a statement. “Recent events, particularly those in Charlottesville, Virginia, and its aftermath, require that we come together as a country and reinforce values and ideals that unite us – tolerance, inclusion and diversity – and speak against those which divide us – racism, bigotry and any politics based on ethnicity.”

Breaking News!

GM declined to comment when asked whether Barra would have joined the fast-growing list of executives who were quitting in response to the Trump’s comments on Charlottesville, but several company sources said the industry’s first female CEO was caught in a difficult position: needing to publicly express GM’s position on racism and the desire to maintain the close ear of the president. That’s especially significant considering the White House is addressing a wide range of issues that will have serious impact on the auto industry, including federal fuel economy standards and the North American Free Trade Agreement.

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GM Escapes $1B Stock Handover in Lawuit Settlement

Automaker pays trust's legal fees to fight lawsuits.

by on Aug.17, 2017

General Motors avoided giving up $1 billion in stock by paying its bankruptcy trust to fight lawsuits related to its faulty ignition switches.

General Motors escaped handing over $1 billion in stock by reaching an agreement with the automaker’s bankruptcy trust to litigate hundreds of personal injury cases and a class-action lawsuit related to its faulty ignition switches.

Last week, it appeared that the trust and plaintiffs had reached a $15 million settlement that would have had the trust accepting $10 billion in previously disputed claims, which would have pushed total approved claims in the case past $35 billion.

News Now!

The company cried foul in a letter to U.S. Bankruptcy Court in Manhattan, claiming the two sides had engaged in secret talks. (more…)

Trump Disbands Economic Councils – Could Impact Auto Industry at Critical Time

GM CEO Barra faced growing pressure to resign in wake of president’s Charlottesville comments.

by on Aug.16, 2017

Merck CEO Kenneth Frazier with Pres. Trump before he resigned from the council and found himself rebuked in a presidential tweet.

(This story has been updated to include comments from GM CEO Mary Barra on the closing of the economic councils and the controversy over Charlottesville.)

Turning again to Twitter, President Donald Trump announced Wednesday that he is disbanding two economic advisory groups formed as he entered the White House last January and originally consisting of some of the nation’s top business leaders.

The move came shortly after the well-publicized resignation of an eighth council member, 3M CEO Inge Thulin. While some of the business leaders had resigned earlier in the year, the exodus had ramped up in recent days following a series of controversial remarks the president made regarding the weekend violence in Charlottesville, Virginia as neo-Nazis, KKK members and other White Supremacists marched through the city.

The Inside Story!

Other members of the council faced increasing pressure to resign, as well, including Mary Barra, the CEO of General Motors. But several industry insiders said Barra, in particular, faced a perplexing situation. The Trump Administration is considering several measures – including a possible rollback of mileage standards, and the renegotiation of the North American Free Trade Agreement – that could have substantial impact on GM. As part of the two councils, Barra had unusually good access to the president.

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GM Recalls 800K Full-Size Pickups Due to Steering Issue

Company will update software to fix problem.

by on Aug.11, 2017

The 2014 Chevrolet Silverado is being recalled for a potential problem with its electric power steering.

General Motors Co. is recalling 800,000 full size pickups worldwide due to a potential problem with the trucks electric power steering.

The action impacts 690,000 Chevrolet Silverado 1500 and GMC Sierra 1500 trucks in the U.S., the automaker noted. The recall impacts 2014 model year vehicles.

Safety News!

The trucks could suffer a temporary loss of the power steering, particularly during low-speed turns, according to the National Highway Traffic Safety Administration. Dealers will reflash the software in the truck to resolve the problem. (more…)

Chevy Has Big Plans for Bigger Traverse

GM’s largest brand wants to boost sales, drive up transaction prices.

by on Aug.09, 2017

The Chevrolet Traverse tied with its siblings, the GMC Acadia and Buick Enclave, as the most American vehicle on the market in a recent study.

When Chevrolet unveiled the all-new 2018 Traverse earlier this year, it revealed a three-row ute that is larger in just about every dimension. The question is whether it will grow larger in the column that matters most to Chevy’s bookkeepers.

Compared to the midsize SUV segments dominant nameplates, like the Toyota Highlander and Ford Explorer, the Traverse has been a relative afterthought. But Chevy is hoping that the significant upgrades it’s making will sharply boost demand in the coming year, especially at a time when utility vehicles continue to gain momentum even as the overall U.S. automotive market slips into the doldrums after three years of record sales.

The Inside Story!

Officials with General Motors are so confident about the new model, in fact, that they’re studying ways to squeeze more utes out of the Lansing, Michigan plant Traverse shares with midsize offerings from the Buick and GMC brands, the brand’s marketing chief told TheDetroitBureau.com during a briefing on the all-new 2018 model.

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GM Completes Sale of Opel/Vauxhall to France’s PSA

Detroit maker continues downsized focus on profitable markets.

by on Aug.01, 2017

PSA CEO Carlos Tavares and his GM counterpart Mary Barra celebrate the sale of Opel.

Moving faster than many expected, General Motors has completed the sale of its money-losing European operations to PSA Group, the French automaker’s chairman hailing “the birth of a true European champion today.”

The sale was announced last March and marked a major shift by General Motors away from being a global brand operating in virtually every possible market to one focusing on locales where it can be sure of turning a profit. The long-troubled Opel/Vauxhall unit had last operated in the black in 1999 despite repeated turnaround efforts.

Breaking News!

Itself running deep in the red until earlier in the decade, Parisian-based PSA, the parent of the Peugeot and Citroen brands, has delivered an unexpectedly strong turnaround of its own since the original Peugeot family gave up control of the company and Carlos Tavares was brought on board to run the company.

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As 2 More Kids Die, New Bill Aims to Prevent Vehicular Heatstroke Deaths

Nationwide heatwave threatens to bring more fatalities, experts warn.

by on Jul.31, 2017

Within hours, two Phoenix babies died after being left in hot cars over the weekend.

Days after two children died in Phoenix after being left in the back seat of hot cars, lawmakers and safety advocates say they’ll push to pass new legislation designed to prevent further deaths.

More than two dozen child and highway safety groups are calling on the U.S. Senate to pass the HOT CARS – short for Senate Bill S.1666, the Helping Overcome Trauma for Children Alone in Rear Seats Act – which has been introduced on Capitol Hill. It would require automakers to equip new vehicles with alarms designed to prevent parents and caregivers from inadvertently leaving children in the back seat of their vehicles.

Breaking News!

“A simple sensor could save the lives of dozens of children killed tragically in overheated cars each year, and our bill would ensure such technology is available in every car sold in the United States,” said Sen. Richard Blumenthal, a Connecticut Democrat and co-sponsor of the bill, along with Minnesota Sen. Al Franken. “It can take mere minutes on a hot day for a car to turn into a deathtrap for a small child.”

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Renault-Nissan Alliance Leapfrogs Toyota, VW, to Become World’s #1 Automaker

Hits mid-year with big lead, lots of momentum.

by on Jul.28, 2017

Badass warrior? Nissan and Alliance partner Renault have leveraged a lead in global sales.

The auto industry has a new king-of-the-hill – at least for the first half of the year. A dark horse not all that long ago, the Renault-Nissan Alliance handily outsold both Volkswagen and Toyota and continues to gain momentum going into 2017’s second act.

It had been largely a two-horse race until recently, Volkswagen last year pulling off an upset due to a series of problems hammering Toyota. But Nissan has rapidly gained speed and last year’s effective takeover of troubled Mitsubishi Motors Corp. helped put it over the top.

Industry News!

For the first half, the Euro-Asian Renault-Nissan Alliance sold 5,268,079 vehicles, compared to Volkswagen’s 5,155,600 and Toyota’s 5,129,000. All three makers are on track to top 10 million for year. But General Motors, which had long ranked at the top of the sales charts, now lacks well back in fourth and unlikely to even make 9.5 million for the full year without picking up its pace.

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GM Earnings Tumble on Weakening U.S. Demand, Sale of European Ops

But numbers manage to beat Wall Street expectations.

by on Jul.25, 2017

GM CEO Mary Barra: "discipline" pays off.

General Motors reported second-quarter net income of $2.4 billion, down about 15% year-over-year, reflecting a variety of headwinds, including weakening U.S. sales, as well as the sale of the maker’s European Opel Vauxhall unit to France’s PSA Group.

On a per-share basis, GM came in at $1.60, though that rose to $1.89 by excluding  one-time charges, well ahead of the $1.68 consensus forecast by automotive analysts polled by FactSet. As a result, the maker’s shares began trading up slightly in early morning trading.

Breaking News!

GM’s declining net earnings came as no surprise, especially considering the ongoing slump in U.S. new vehicle demand. It reported an overall 5% decline in June, continuing this year’s overall downward trend. In recent months, the automaker has voluntarily cut back on low-profit fleet sales, but June’s retail numbers were also down 3% for June.

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