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.

Original automotive content: Automotive Blog

Volt To Cost $40,000?

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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Original automotive content: Automotive Blog

2010 Camaro SS Recall On Battery Cable

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.

Original automotive content: Automotive Blog

Why Toyota Wants GM To Succeed

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?

Original automotive content: Automotive Blog

Does Barack Know What’s Best For GM?

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.

Original automotive content: Automotive Blog

Will GM Kill The Hummer?

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

Original automotive content: Automotive Blog

Automotive Industry Storing Unwanted Cars

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 2500 LTZ w Z 71 package DIESEL 2WD Burl dash Summit WHITE    US $36,300.00

Chevrolet Silverado 2500 LS ONE OWNER 60L V8 TOW PKG FULL POWER OPTIONS CLEAN    US $12,795.00

Chevrolet Silverado 1500 LT2 GREAT LOOKING VERSITILE WORK OR PLAY TRUCK    US $20,831.00

Original automotive content: Automotive Blog

Bigger Incentives For Bigger Gas Guzzlers

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

Original automotive content: Automotive Blog

General Motors Closes Plant Due To Strike

"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.

Original automotive content: Automotive Blog

Record Loss for GM in 07