Autoblog

It's usually fun to speculate on what the future might hold, but this is one case where we're not so enthused. First of all, nobody in their right mind really wants to see GM fold (at least they shouldn't), regardless of the fact that it has been mismanaged for a good portion of its 100-year run. There have been some seriously cool machines that have rolled out of GM's various divisions, not the least of which is the iconic American sportscar, the Corvette. The 'Vette has succeeded where others have failed in providing a relatively inexpensive way for Americans to enjoy world class performance, and things have recently taken a turn for the better with the Z06 and ZR1 models. But, what would happen to the American classic if the General were to go bankrupt and couldn't recover? Would the Corvette cease to exist?

This exact question is currently being contemplated by forum members at GM Inside News. One inexplicable suggestion is that Toyota would be the best automaker to take the reigns of the Corvette brand -- a theory that's been met with a fair amount of skepticism. After taking just one look at the latest 'Vette wearing a Toyota badge, we nearly shed a tear. The comments are open -- let the debate rage.

[Source GM Inside News]

"Thick and fast." That's the phrase that describes the opinions, pleas, advice, denunciations, and WTF? going on around the U.S. auto industry right now. Enter Congress, which is trying to figure out how to give Detroit automakers the $25 billion they were promised a few months ago. Congressmen are sounding off almost daily on what kinds of stipulations they want to attach to the loan/bailout/whatever you want to call it -- and that's just the ones who would vote for it at all.

Next up is Senator Bill Nelson, a Florida democrat, who wants U.S. automakers to achieve a fleet average of 50 mpg by 2020. Right now, the CAFE target is 35 mpg by 2020 -- a goal agreed upon only after a huge amount of jockeying in and out of Congress. Nelson asked, "Why should we be pouring taxpayer money into an automobile industry that has continued to resist higher miles per gallon, which has led us in part to the problems we're in?"

While that might sound like a great idea to some, it would cost a terrific sum of money to achieve. The Detroit Three need the money they're asking for just to get to Q2 of 2009, not to create a range of cars that would represent magnificent advances -- based on where we are right now -- in 11 years. There's a good chance nothing will be decided until the president-elect takes office, and by then, who knows what other requests Congress will have.

[Source: Automotive News - Sub. Req.]

From November 28 to December 11, GM is holding back incentive payments to dealers, including dealer cash and customer cash. Why? in the words of Mark LaNeve, GM's VP of North American sales, because "Anytime you can delay any kind of a payment, it helps cash flow" And cash is probably the most important four-letter word in any GM dictionary.

The withheld payments don't cover all the monies that GM sends to dealers, just various incentives. According to Automotive News' numbers, the two weeks of extra cash could let GM hold on to an extra $300 million. If GM needs $14 billion per month to operate, $300 million would extend the lifeline by... almost another day. Payments after December 11 would resume on a weekly basis, but with the new two-week delay, something like an employee paycheck. GM discussed the plan with the National Dealer Council beforehand and, unsurprisingly, the council understood. Follow the jump to read LaNeve's letter to dealers.

[Source: Automotive News - Sub. Req.]

General Motors CEO Rick Wagoner mentioned last week that, in addition to selling the HUMMER brand, other assets were being evaluated for sale, as well. While no other brands are likely to be sold off besides HUMMER, GM did announce this morning that it's selling all of its remaining stock in Suzuki. GM owns 16,413,000 Suzuki shares, which is about 3% of the Japanese automaker's traded stock. The value of the sale is estimated at $230 million, all of which should help keep the lights on at GM for an extra day or two if some form of government aid isn't approved this week by Congress.

Despite selling off its remaining interest in Suzuki, GM is still very much interested in continuing the two automakers' working relationship and may end up repurchasing a stake in the future. The giant American carmaker's interest in its Japanese competitor has fluctuated over the years, peaking in 2001 when it held over 20% of Suzuki's outstanding shares. In 2006, however, it sold 17.4% before today's unloading of the remaining 3%.

[Source: General Motors]

Today's lame-duck Congressional meeting is going to be an important one for Detroit automakers, with House Democrats working on a $25 billion bailout proposal. Passion is high on both sides of the bailout argument, and Democrats are looking to toughen up a bill to help gain crucial votes needed for passage. Among the items being discussed is a taxpayer stake in any assisted automaker, additional restructuring and stiff restrictions on executive pay.

House Republican Richard Shelby is one of many leaders likely to vote against the bill no matter what stipulations are added. The Alabama Republican called Detroit Automakers "dinosaurs" that need to start over. He also called for management to go, but he stated that he wouldn't support a bill even if they did. Michigan Democrat Senator Carl Levin suggested that if GM CEO Rick Wagoner had to step down to guarantee aid, he should consider it. GM is pleading for a bridge loan both in Washington and on YouTube, where the automaker released a four-minute video explaining the importance of its industry.

President-Elect Barak Obama also chimed in on the automaker bailout situation on 60 Minutes Sunday, stating that the loss of Detroit Automakers would be a disaster for the country. Obama also insisted that any loan can't be a "blank check," and that industry leaders, labor, suppliers, lenders, and stakeholders needed to agree on a long term solution that shows that loans aren't merely delaying the domestic industry's demise.

[Source: Automotive News - Sub. Req.]

General Motors' CEO, Rick Wagoner, who's been manning the helm for the last eight years and a part of its staff since 1977, has taken some heat for asking the Feds for a bailout. A possible condition for those funds may be the symbolic sacrificial death of its current leader, according to a slew of analysts polled by Bloomberg. Whether true of false, there seems to be a sense that the CEOs of U.S. automakers are some of "the dumbest people in the world," according to ex-Chrysler prez. Thomas Stallkamp. Ouch. Ford has stated that it doesn't need a bailout and Chrysler is actively looking for partners to keep itself alive.

In the last few months, when the government has bailed out institutions such as AIG, Fannie Mae and Freddie Mac, one stipulation was that its top management be replaced, and that sentiment may stick around if the Detroit 3 receive packages of their own. Although Wagoner isn't likely to step down willingly, he may not be given the choice if some legislators get their way. Here's an unanswered question, though... who would be the best man to replace him?

[Source: Bloomberg]

General Motors CEO Rick Wagoner has confirmed that HUMMER is the only brand in the automaker's portfolio that's up for sale. Many believed that Saab's days were also numbered and the Swedish brand would be getting out from under the corporate umbrella as soon as a buyer could be found. Not so says the Ricker. Other brands thought to have been out on the lawn behind a For Sale sign included Opel-Vauxhall, GM of China and Holden. While HUMMER may be the only GM brand for sale, the automaker is certainly keen to sell other assets weighing it down. Wagoner didn't elaborate on which assets those might be, but his company's remaining 49% stock in GMAC doesn't seem to be doing it any good.

[Source: Autocar, Photo by Bill Pugliano/Getty]

We weren't surprised when Chrysler decided to nix plans for a Dodge Challenger convertible. The LX-based coupe wasn't developed with a drop-top variant in mind and it would've taken far too much cash to shore up the chassis with the roof removed. And if you hadn't heard, Chrysler isn't doing too well in the cash department.

Now, MotorTrend is reporting that General Motors is delaying the launch of the Chevrolet Camaro Convertible for the same reason, putting off the introduction for another year as the General attempts to keep its head above these financially troubled waters. Spending on such extravagances is hard to justify for both GM and consumers, and if the Federal bailout goes through, it's safe to assume that legislators and the public us would have hard time seeing our tax dollars being used to sell a niche vehicle.


[Source: MotorTrend]

When Congress wants to hand out money, it apparently wants to include everybody. Barney Frank, Chairman of the House Financial Services Committee, is likely to propose a measure that lets automakers tap into the $700 billion vein of rescue dollars that's ostensibly intended for financial institutions, yet is being hungrily eyed by everyone.

CEOs from Ford, General Motors, and Chrysler will make the trek to Washington, DC, as will UAW chief Ron Gettelfinger. All will be pleading their collective case for an estimated $100 billion-plus vitamin pill. Many, not the least of whom is Treasury Secretary Henry Paulson, think that automakers should not be allowed to snag some of the cash that's intended for financial institutions. Things look bleak for all three of the brands, but can Congress be moved to offer up some money and prolong the jobs of so many Americans? Even if the automakers get the $100 billion they're seeking, when nobody's buying, it will merely turn into taxpayers funding an increasing glut of product nobody can afford to buy. Even those consumers with money and good credit are holding back as the economy delves into recession, emotional purchases are way down, and most vehicle purchases are driven by wants versus needs. Things will undoubtedly sort themselves out, but not before more pain for Detroit.

[Source: Automotive News - Sub. Req.]

After months of reviewing only family-oriented transportation, this particular blogger began a streak of judging high-horsepower sports coupes. It's damn near impossible to complain about something with more power than anyone should ever need, but after a while my family got tired of trying to shoehorn five-year-old twins into the cramped back seat of a coupe. That's why we were most relieved to see that the 2009 Chevy Traverse was ready for a run in the Autoblog Garage.

The Traverse is the latest though maybe not last Lambda crossover, and since it dons General Motors' high volume Bow Tie badging, it's likely the most significant, as well. It is GM's least expensive eight-passenger crossover while also carrying the distinction of being the most efficient and most powerful Lambda. Does that make the Traverse the best of GM's Lambda litter? We took on the massive people hauler for a week to find out for ourselves.


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