6 posts tagged “general motors”
General Motors has dramatically shrunk its lineup through bankruptcy proceedings, and one of the brands that GM is retaining as a core component is Cadillac. The luxury brand has lost plenty of ground to Japanese and German competitors in recent years, but it remains important to General Motors.
Among Connecticut Cadillac dealers, one of the most exciting models in the Caddy lineup is the CTS-V. Powered by a 556 horsepower 6.2-liter V8 engine, the CTS-V is complete with massive Brembo brakes, 19-inch wheels, and a range of other performance tweaks. But with only 12 miles per gallon, Cleveland Chevrolet dealers say the Cadillac CTS-V may seem like an odd vehicle to hold on to when the brand is struggling - especially considering its price tag of over $60,000.
The Cadillac CTS-V is limited to about 1,000 vehicles. Being such as low-volume model, Pittsburgh Cadillac Loans admits the survival of the CTS-V may be in question . With the exit of Bob Lutz, perhaps no one at GM is left to defend such a frivolous model for the financially strapped automaker.
Where the Cadillac CTS-V truly shines is in its ability to deliver the performance of a Chevrolet Corvette, while providing an upscale interior environment and the flexibility of four full-size doors. With a 0-60 mph speed of only 4.3 seconds, Avon Auto Repair suggests that the Cadillac CTS-V packs plenty of performance for the price. Although there is plenty of German competition in this class, the CTS-V is a standalone among American luxury vehicles.
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Get the latest insights into new Cadillac cars here.
General Motors has been hinting about the possibility of dropping a number of brands within its broad lineup. Ford has also removed several brands from its lineup, and General Motors may be next to remove brands that simply aren’t yielding results. Another factor the General Motors has to deal with is jobs. Ford, again, has already announced that it will be laying-off white-collar workers, and GM must now face the same difficult task of tightening up its operations.
Recent shifts in consumer buying habits have already caused sales to dramatically slip, especially as consumers no longer want gas-guzzling trucks and SUVs, but instead want fuel efficient cars, crossovers, and green vehicles such hybrids. While the Saturn Vue Hybrid at Saturn Boulder is a popular vehicle with eco-conscious consumers, buyers are still weary of domestic brands and their SUV- and truck-heavy lineups.
As the current automotive climate continues to suffer, especially in North America, GM will have to make further changes to offset its troubles. Production has already been cut, with some assembly plants being shut down entirely, to help align supply with the dwindling demand at dealers. GM has had more luck abroad in emerging markets which has helped marginally to offset the losses experienced in North American. In addition to cutting production, GM made jobs cuts last year as well, but Lubbock Chevrolet admits that the efforst the efforts may be just the beginning.
Some of the brands that may be at stake at GM are Buick, Saab, and Saturn, which may face either being sold or dissolved entirely much like Oldsmobile in 2004, which Detroit Chevrolet dealers certainly hope will not be the case. Another brand that that may face being sold in the short term is Hummer which currently only has large trucks and SUVs - the exact vehicles that most consumers don’t want to buy at the average price of gas is priced well above $4 per gallon. While the overall picture looks grim, Yakima Pontiac is remaining optimistic as they've already seen progress from GM in terms of new models, improved quality, and promise of innovation.
General Motors is facing significant problems with its lineup and brands, and manufacturers such as Toyota, while also suffering a sales slump, is now able to chisel away at GM’s once unstoppable market share.
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The every changing developments of the Detroit automakers can be found here.
With the Big Three lobbying Washington hard for federal aid, the biggest question is what will happen to their product offerings and lineups. Needless to say, the business plans that were requested by Congress needed to address details about just how these automakers would use federal dollars to help turn the companies around.
Currently, General Motors, Ford, and Chrysler sell a total of 112 models and offer 15 different brands to choose from, and that’s in the United States alone! Those are high numbers, especially considering the steep sales declines faced by many of these brands. By comparison, Toyota, Honda, and Nissan offer only 58 models and seven brands.
But the US automakers are not necessarily entirely at fault, argues Waterbury GMC dealers and others. The Big Three once dominated the auto market, and offering a slew of brands was a strategy that helped them become sales leaders. However, these once powerful automakers now account for under half of all new vehicle sales in the US, and their market share continues to slide.
While having a multitude of brands used to make sense, that same strategy is now depleting budgets, increasing the number of designers and engineers needed, and also causing strain on management and dealers. For example, Detroit Chevrolet dealers now have to compete against dealers offering re-branded variants of practically the same cars just down the street. The radical proliferation of models and brands has certainly contributed to high costs for the automakers. To make matters worse, Used Cars Springfield MA believes this strategy has also has caused domestic automakers to move in accordance with adverse business and financial issues at a much slower pace.
Among the cut backs that the Big Three will have to make are the ridiculous salaries. For example, Alan Mulally, Ford’s chief executive, will reduce his $21 million salary to a mere $1. Additionally, Ford will be arriving on Capitol Hill in a Ford Escape Hybrid, which certainly will put more symbolic faith in American cars as the Big Three's decision to previously arrive in Washington via private jets did not convince anyone shopping at Chrysler Chicago of their plight. But plenty of people did wonder why they were unable to use this opportunity to promote the value of their own vehicles. After all, the Escape hybrid has appealed to Ford Tacoma customers for its versatility and class-leading fuel efficiency.
The reduction of the Big Three’s brands and vehicle lineups has already been underway. Perhaps the latest news is from Ford who announced it was considering the sale of Volvo, its last remaining European luxury brand, which has also seen diminishing sales. But Ford isn’t the only one. General Motors has already been trying to sell the Hummer brand, while Saab, Saturn, and Pontiac all have the potential to be sold or eliminated as well. However, with so many brands, customers at a Ford Dealership in St. Louis expect that something will have to give at GM soon.
Cutting a brand isn’t a simple task says Lincoln Mercury Los Angeles, despite the need for it. Due to state franchise laws, an automaker such as GM will need to buy out the dealers that offer that brand. GM spent about $1 billion doing this when it decided to scrap the Oldsmobile brand.
But these days the automakers are already bleeding cash, and don’t have tons of it on hand to be buying out dealers of dissolved brands. A Spokane used cars dealer suggests that this makes a federal bailout absolutely vital to GM and the Big Three.
The Big Three are not the only ones hurting. Chevrolet Tuscaloosa dealers warns that dealers are also suffering from slowing car sales and the credit crunch. As a result, the Big Three’s dealer networks are shrinking as many dealers are closing their doors for good.
Forecasts remain fairly dim in the short-term as auto sales are not expected to rebound. Even Used Cars Kansas City dealers believe that until credit is readily available, it seems all dealers in the US market will continue to fight an uphill battle. But until the domestic automakers provide the changes that the industry desperately needs, it will be the domestic dealers that will especially be hurting.
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Look for more on the Detroit bailout right here.
There have been reports developing that the embattled General Motors may be considering dropping some brands, much like Ford’s recent purging of Jaguar, Aston Martin, and Land Rover. The GM brands that may be at risk of being dissolved or sold are Pontiac, Saab, and Saturn.
GM has a tough job ahead, and has to work hard to convince those on Capitol Hill that it has a strong plan to curb costs and help its chances of being profitable. If GM manages to do this, it may be able to get its hands on vital federal aid.
The report that GM may cut or sell several brand stemmed from Bloomberg, but the source for the information is unknown. Needless to say, GM is burning through cash and needs to make drastic changes if it hopes to quell talks of bankruptcy and return the company to profitability. Already, the automaker has reportedly been shopping for a buyer for the Hummer brand.
General Motors is in need of a restructuring if it hopes to get federal aid. With the automaker losing money month after month, the automaker is in need of retooling its ways if it hopes to stay in business, while also helping Detroit Chevrolet dealers and Lewis Automotive who strive to remain optimistic amid huge obstacles. GM isn’t new to eliminating brands. The Oldsmobile brand was eliminated in 2000 due to dwindling sales, despite its 103 year old history.
Although GM remains the largest domestic automaker, it's not alone in needing serious change says Ford of Brattleboro. But Ford Dealers Chicago IL contests that Ford is in better shape considering it has already ditched slow-selling brands and to Alberta Mazda's surprise has even diminished its stake in Mazda. Ford also also introduced many new vehicle to its lineup, including the most recent introductions of the Ford Fusion, Mercury Milan, and Ford Mustang at the LA Auto Show.
GM maintains 1,071 outlets for Pontiac, 400 for Saturn and about 105 for Saab from among its 6,400 dealerships across the country. More recently, GM has tried to combine Cadillac, Hummer and Saab together, and Pontiac, Buick, and GMC together at dealerships to help curb marketing costs. While Saab was acquired by GM in 1990, the automaker established Pontiac in 1926 and Saturn in 1985.
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Stay tuned for updates on General Motors restructuring plans.
With increasing scrutiny on fuel consumption and efficiency, General Motors may be switching gears and reducing its dependency on truck- based sport utility vehicles.
Demand from consumers as well as the government has been putting pressure on GM to boost fuel efficiency, causing a reported interest in creating lighter, car-based SUVs. This trend is evident among Bob Watson Chevrolet drivers who have felt the increased cost at the pump. Many of GM’s SUVs such as the full-size Chevrolet Tahoe currently rides on a heavy truck chassis which is shared with pickup truck platforms.
The Chevrolet Silverado and other GM pickups essentially share identical chassis with a wide range of large SUVs including the Chevrolet Suburban, Cadillac Escalate, and GMC Yukon. By switching to a car based chassis, the formula changes dramatically as their popular SUVs will have to be changed from the ground up.
This move is partially aimed to satisfy new government requirements. By 2020, the government demands that vehicles will need to cut down on fuel consumption by 40 percent and boost the consumption average up to 35 miles per gallon.
Making vehicles lighter is part of the new equation to curb excessive fuel consumption. As the price of fuel continues to skyrocket across the country, dealers such as GMC Rochester need vehicles that get consumers excited and offer greater efficiency, and the move is not only to appease government demands, but is also a way to satisfy growing consumer demands for efficiency.
The move to a unibody or car-based design will force GM to spend more money on developing new platforms. Even Ford has struggled to provide additional crossovers and fuel efficient vehicles, resulting in strong sales of the Ford Edge and Escape at Ford Dealers Ashland. Sharing platforms between trucks and SUVs has helped the company save since the vehicles used common parts and components.
Sales of gas guzzling
trucks and SUVs have declined dramatically recently as the price of gasoline
hovers around $4 per gallon in many parts of the country. With a costly move to
make larger SUVs more efficient, it could make the automaker more profitable in
the long run. Raynham New Buick dealers have already seen improvements, as vehicles such as the Buick Enclave offer both incredible size and cargo capacity as well as moderate efficiency.
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More GMC vehicle news coming shortly.
General Motors may be following the lead of other automakers
in removing brands from lineup. Aside from General Motors, Ford has already
ditched many of their slow selling premium brands including Jaguar and Land
Rover to focus on its main Ford lineup. Likewise, GM has faced slowing sales
across the board, a factor that has slowed truck inventory at Ford Orange County, and with the rising cost of gasoline more consumers are
demanding affordable and fuel efficient models.
GM has been forced to close several truck and sport utility
assembly plants recently and cut production back to become more in-line with
consumer demand. In addition, to sales down more than 16% this year, GM’s stock
has dipped below $10 – a first since 1954. Job cuts may also be an option in
the near option to help save the ailing automaker.
With development, manufacturing, and other costs continuing
to increase, GM has its hands full, and the selling or dissolving of at least one
brand seems almost imminent. So far, Chevrolet and Cadillac are the strongest
selling brands for General Motors.
Buick is perhaps one of the weakest brands in the GM lineup. This year, Buck has experienced a 21% decrease in sales. In addition, Saab continues to be a relatively low volume brand. One of the strongest brands under the GM umbrella continues to be Chevrolet, which offers vehicles such as the Chevy Cobalt and Aveo which have both picked up sales momentum at San Diego Chevrolet and other Chevy dealers. Saturn, despite introductions of new models, has also seen steep declines in sales.
GM dealers are also concerned about the products being offered by the automaker. Many dealers are seeing flaws in the automaker's lineup, including GMC Rochester which noticed a lackluster response to newer models including the GMC Yukon Hybrid which doesn't quite give the fuel efficiency that is currently in high demand.
Executives and analytics have also suggested that Hummer may be the first brand to go. As the price of gasoline continues to rise above $4 per gallon, the Hummer lineup which includes only large sport utilities and trucks is showing weak sales and certainly doesn’t help the automaker’s image among increasingly eco-conscious consumers.
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Get the latest General Motors and domestic automaker news here.
