There are lots of conflicting information about he upcoming Chevy Volt, that just doesn't seem to add up.  Past news has presented the Volt in a light that makes the electric car look like GM's savior.  But what can an expensive vehicle focused on a small niche market do for a failing monster like GM?

Furthermore GM has announced that the Volt will get 230 miles per gallon, which is true, if you don't understand basic math.  This issue has been discussed at length with GM's 100 mpg Hummer as well, electric cars and hybrids have limitations, which aren't taken into consideration when figuring gas mileage.

All of this aside, from a strictly economic perspective, do you know how much gas I can buy for $40,000?  At a price of $3 per gallon I can purchase over 13,000 gallons.  Assuming I drive an average of 20,000 miles per year in a vehicle that gets an abysmal 16 mpg, I can purchase 10 YEARS worth of gasoline.  So, with a cost analyst of buying a Volt, the only people interested will be the rich hippies.

As far as I'm concerned, we still don't have a viable option to the traditional internal combustion engine.  Count me out until the next big thing hits.

Looks like I was correct, the 2010 Camaro recall list has began.  The only Camaro's affected by the recall will be the SS V8 models and ultimately pissing off only about 300 new 2010 Camaro owners.  The rest of the Camaro recalls can be performed in house before being delivered to their owners.

The 2010 Camaro recall is for a manufacturing defective battery cable.  Essentially this makes the Camaro completely die or in worst case scenarios catch fire.  As of this posting no fires have been reported due to the battery cable rubbing up agains the Camaro starter.

GM has agreed to not only fix the issue listed in the recall but also provide a free loaner vehicle and a free oil change for the new Camaro owners troubles.

2010 Camaro Recall

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World markets are a tricky thing and staying in the customers good graces can be a balancing act.  That's why, at least vocally, Toyota hopes that GM will succeed and are constantly sending good wishes their way.  But why would a competitor, in a ever growing cut-throat market, want it's biggest competitor to succeed?

Let's look at history, even a few short decades ago.  In the 80's and before there was huge hatred toward the foreign market.  The perceived quality of foreign vehicles had not yet been established, so Toyota like other brands were just trying to prove themselves.  Another challenge they were trying to overcome was the general publics patriotism, the hope, and want for an American company to dominate the industry.

How far have we come?  Obviously Toyota took over GM as the largest car manufacturer in the world, owed largely to it's ever increasing US market share.  So what does Toyota risk, if they don't actively support it's domestic competitors?  In a sensitive market, walking on egg shells may be the only thing that keeps Toyota from slipping back into the early 80's in the eyes of American car buyers.

Consider the devastation to Toyota domestically if the American people decide to rally against foreign competitors and strongly support their domestic car manufacturers again.  Potentially, all the work Toyota had done to generate brand quality would be destroyed.  I'm not saying it's a bad thing, but there is a reason the owl wants the rabbits to mate.

GM Restructuring

Does the President of The United States of America really know what's best for the auto industry or more specifically GM?  I suspect he does not, nor does his appointed Auto Task Force, but that's not stopping him from taking control and throwing more weight around in the free market than I feel is justified.  It's a difficult political stance to take in the face of growing government and strong liberal support, but I say, let them fail.  But let's take a look at what it means to let domestic car manufacturers, like GM, go under.

The first argument always brought up is the threat of losing so many jobs at one time.  GM, not too long ago was one of the largest employers in the world and going under inevitably meant thousands of lost jobs.  However, this seems to be a misguided opinion on the face of what bankrupt means in the US.  Just because GM may file for some chapter of bankruptcy, does not mean they will stop making cars.  What bankrupt means in the US, is that they will be allowed to restructure, renegotiate, and hopefully get the company moving in the right direction again.

Most important to GM's potential restructuring plan would be the ability to renegotiate their Union contracts.  It's been proven for years that the payout to GM employees per hour is far above what competitors are paying, yet still satisfactory wages.  Pile this unnecessary expense on top of the money they spend on pensions and it spells a huge disaster in a failed auto market.

These are just a few examples of what could potentially happen with GM failing and I don't think it means closing doors and never making cars.  But what kind of impact will Barack Obama have on GM at a time when the automotive market is as unpredictable as ever.  Contrary to popular belief, not everyone is buying little hybrid cars.  So what will the Auto Task Force appointed by Barack Obama instruct GM to do?

For starters, as part of the bail out, CEO Rick Wagoner will be required to step down from his position.  The COO Frederick Henderson will be assuming the CEO's vacated position.  But since Barack Obama specifically asks for Rick's resignment, who really is the CEO of GM if everyone answers to Barack?

Hummer In Trouble

The automobile industry is quickly becoming a wild west again, where nobody knows what the next big thing will be.  Sure, you could hedge your bets on a hybrid, but unfortunately those are too expensive for a bad economy.  Better yet, you could bet against fuel hogs, but then again thats a tired bandwagon that may be ending with the killing off of Hummer.

The New York Times has a devastating article today about a Hummer dealership in St. Louis, MO that is struggling to stay afloat.  According to statistics, the Hummer was at the peak of it's sales in  2006, but has since plumetted to an 1/8 of what it was in 2006.  This will effect more than GM, this will effect dealerships, and people's livelihoods.

With news of Barack Obama taking over GM, it's unlikely that the Hummer will saved.  The Volt and other hybrid type vehicles will most likely be given head way and 'bail out' money before making the Hummer more efficient will even be considered.  The Hummer has a bad rap, one that cuts deep, and may indicate the changing of the guard at GM when the Hummer dies an untimely death.

The economy is going down fast. It has been bloated for so many years and has been extremely faked by the worlds governments. We are now seeing just where our economy is, the real economy. Jobs are being layed off and so people do not have as much money. As you may have seen and heard the car industry is hurting very badly during this time. Without money people can't buy cars and so car companies are seeing close to 50% drops in car sales compared to last year. Its not that people do not have money,they still do its just that they are saving everything now.

The New York times is reporting on a interesting story about how cars from Toyota and other car companies are having to moth ball their cars. Each day thousands of cars are being made in plants all over the world. Then they are loaded onto a ship and sent overseas to America and other countries. Well the thing is people are just not buying the cars. When the cars get over here they are not being taken to sellers but the car companies are renting acres of space that is usually used to temporary store containers to store their cars on. Toyota alone has cleared a deal for 6 acres worth of land to store cars on for an unknown amount of time! They even want more land! This has been going on for 2 years now but is getting worse.

Toyota has slowed production down to meet demand but what will they do with all those cars if people are not buying them? Whats really bad is we could have a surplus of 2007-2008 models with no miles on them for years to come. They will only go down in value so its not good for car companies. Cars are being stored at airports and fairgrounds also I read. Its amazing what just a slowdown of the economy can do to some businesses.

Dealerships are actually denying truck loads of cars because they just can't sell them fast enough. General motors is going to go bankrupt soon they are saying also. Toyota is hurting just as bad though as GM as their car and SUV sales are way down. You may have noticed Toyota's "Saved by Zero" commercials. Its a sign they are hurting badly,desperate to get rid of a car. If you NEED a new car this is the best time to find one but I suggest you buy a used one. People are almost giving them away.

Take a look at the picture on the New York times article about the cars being stored. Its just amazing to see just how many cars are sitting their with no place to go!
http://www.nytimes.com/2008/11/19/bu...orts.html?_r=1

I can't help but notice the influx of large SUV's and big trucks in used car lots and peoples front yards.  I mean, gas is bad yeah, but there always be a need to pull something or haul a ton of dirt, so now is the time to buy.  GM and Chevrolet feels the same way and are showing it by offering some bigger incentives to match the girth of the vehicle.

Previously GM was offering up to $4,000 in cash incentives to new SUV and big truck buyers, but sales just keep falling.  Now GM has announced up to $6,000 in incentives for vehicles like the Chevrolet Silverado.  Seems like a good deal to me, but I already have a 9 mpg SUV with a 5.9l V8...taking up residence in my front yard.

Chevrolet Silverado 1500 1979 CHEVROLET SILVERADO TRUCK    US $51.00

Chevrolet Silverado 2500 DIESEL 2WD 2004 2500HD DURAMAX ALLISON LEATHER 1 OWNER MINT    US $13,950.00

Chevrolet Silverado 1500 2WD Regular 2004 CHEVROLET SIVERADO 1500 2WD REG CAB WORK TRUCK    US $7,987.00

In another sad display of cooperation, that is the domestic auto manufacturer, GM will be stopping production at it's Wentzville, MO plant. The strike in question is between the UAW and American Axle and Manufacturing, Inc. Sadly this is the 11th plant to halt production due to this specific strike.

The Wentzville plant produces the Chevrolet Express and GMC Savana vans, but not right now. Because of the strike over 1,800 hourly employees and more than 170 salaried employees will be without work. Overall the strike has adversely effected more than 21,000  General Motor employees.

No contract talks have taken place since Feb. 25 when the two sides were reportedly far apart on issues such as buyouts and wages.

More Info on the Strike

• BizJournals
  
• Automotive World
• STL Today

Domestics make the world go round and hearing of such a staggering loss makes me weep. For North American car manufacturer General Motors this was an expected announcement, based on 07 quarter reports, but it doesn't make it hurt any less. $38.7 to the red side of the spectrum is no way to end a year, but there is only one way out, up. Starting anew has made national news with GM offering to buy out more than 74,000 U.S. workers, to replace them with lower paid ones.

"We're pleased with the positive improvement trend in our automotive results, especially given the challenging conditions in important markets like the U.S. and Germany, but we have more work to do to achieve acceptable profitability and positive cash flow," Wagoner said in a statement.

It looks like years of bad decisions have finally caught up with the manufacturer. Furthermore the elders at GM have accepted that no significant profits will be met until sometime in 2010, by staying focused on reducing work force and reworking health benefits.

"We need to get all the structural costs down," Chief Financial Officer Fritz Henderson said. "We need to step on the gas in terms of how we're performing in the market as well."

More on General Motors loss in 07 can be found over at mLive.com.