Report : Penske walks away from Saturn deal, and GM forced to kill Saturn brand !

No matter how ready you are expected to hear bad news, it'll always be a shock. Back last summer, when General Motors was crying for some extra cash, it was reported that their Saturn barnd will be sold to Penske Automotive Group. While that was certainly good news, Penske and GM went through a lot of discussion sessions about the supply, maintinance, and labor.

Well after months of discussion, Penske announced that it's mostly worried on future supply of vehicles, and therefore their negotiations with GM about the purchase of Saturn have been canceled. “Since announcing its discussions with GM on June 5, 2009, the company has been in the due diligence process to determine the feasibility of developing an independent distribution model for Saturn-branded products and service parts in the United States, including the sourcing of vehicles from GM and other potential suppliers,” Penske said in a statement. “The company had negotiated a definitive agreement with GM to source vehicles on a contract-manufactured basis for a period of time.”

On GM's side, CEO Fritz Henderson announced that the Saturn brand will be "winding down" the brand, until Saturn finds a new owner. “This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality,” GM CEO Fritz Henderson said in a statement. However, Henderson also stated that customers can still buy Saturn vehicles in dealers, and owners can still have their vehicles serviced. GM is determinded that no jobs will be lost, even after the death of Saturn.

Source : [Penske Automotive Group, General Motors]

New GM : 25 new models to come through by 2011

With General Motors CEO Fritz Henderson announcing the big news on the up-coming 2011 Chevrolet Volt, which will be achieving 230 mpg, he continues to announce more news on the other cars that will be coming the next two years.

GM confirmed that it plans to launch 25 new models for its remaining 4 core brands (Chevrolet, Cadillac, Buick, GMC), by the end of 2011. CEO Fritz Henderson confirmed that a group of consumers and select media were shown the plans for what GM has in-works by 2011 at GM’s Design Center and Milford Proving Ground.

So let's start with Chevrolet. Chevrolet will be getting 10 new models for the next two years. Surely, there's the supposed GM saviour - the 40-mile electric Volt, the Spark city car, the Cruze compact-size sedan, the Camaro Convertible, a production version of the Orlando, production of the GPiX Crossover Coupe Concept, and maybe some others.
As for Buick and GMC, the Detroit automaker said that the two brands will present a total of 10 new entries through 2011, which will include cars like the up-coming luxury compact-sedan - the 2011 Buick Excelle (spy picture above), the new Buick Regal, and the GMC Terrain city-crossover.
Most interestingly, Cadillac will be getting 5 all-new models. The first comer will be the beautiful and longly-awaited - the 2010 CTS and CTS-V Coupe, along with the all-new Escalade, which will be smaller and based on the Lambda crossover platform, and the production version of the Volt-based Converj. Nonetheless, GM will be introducing two new names in the Cadillac line-up, the ATS and the and XTS sedans. The ATS is a performance-oriented luxury compact-sedan, that will get “high-tech engines, rear-wheel drive and optional all-wheel drive”, and competes with the benchmarks from BMW 3-Series, Infiniti G37, Audi A4 and the Mercedes-Benz C-Class. The XTS on the other hand, is a full-size luxury sedan that will replace both DTS and STS sedan, with a design that echoes the 2003 Cadillac Sixteen Concept, and will be a real contender to the BMW 7-Series, Audi A8, and Mercedes-Benz S-Class.

Now, GM said that it is holding back pictures of any of these models, until further along the development process. So if we get any more information of even pictures, you'll be the first to know!

Source : [General Motors]

BREAKING : 2011 Chevrolet Volt to achieve 230 mpg city! [report fully covered]

We didn't want to rush with this kind of news until we got the full coverage behind the story. So just two days ago, General Motors CEO Fritz Henderson held a press conference, and for the first time since 'New GM' emerged out of bankruptcy, he made some big surprising news!

'New GM' CEO Fritz Henderson that the up-coming 2011 Chevrolet Volt, which GM hopes could save the company and their auto industry, will have an official EPA fuel-economy rating of 230 miles-per-gallon in city driving.

The new methodology of rating an EV vehicle is being developed by the EPA; which weighs plug-in EVs as traveling more city mileage than highway mileage on electric power alone. The EPA uses kilowatt-hours per 100 miles traveled to define the electrical efficiency of plug-ins, which then is converted to mpg. As such, GM says the Volt consumes 25 kilowatt hours per 100 miles in a city cycle, resulting 230 mpg. Now that makes the Volt, the first car ever to get a triple digit fuel economy rating!

What's more, GM said that it expects Volt owners to pay $2.75 for electricity for a range of 100 miles, or less than 3 cents a mile. So how in the name of technology have GM achieved such a thing?

Well, GM refused to state any answer to this, but just yesterday, we somewhat got an answer. Green Car Advisor contacted the EPA looking for confirmation and clarification on the methodology used on the Chevy Volt to come to 230 mpg - just like the rest of us. The EPA responded with the following statement: “EPA has not tested a Chevy Volt and therefore cannot confirm the fuel economy values claimed by GM. EPA does applaud GM’s commitment to designing and building the car of the future - an American-made car that will save families money, significantly reduce our dependence on foreign oil and create good-paying American jobs. We’re proud to see American companies and American workers leading the world in the clean energy innovations that will shape the 21st century economy.” - [Green Car Advisor]

So, to be brutally honest, GM basically lied about EPA actually rating the Volt at 230 mpg! Ok, if GM says that the Volt will be able to achieve 230 mpg in city, then that must be true; but why say that EPA tested it and measured the Volt at 230 mpg? That seems pretty weird.

However today, we got another answer. Everyone's favorite GM man, Bob Lutz, who's now the marketing manager for GM, said that “If you haven’t heard, 230 is the estimated city fuel economy number for the Chevrolet Volt, as in 230 miles per gallon, according to new federal fuel economy procedures under development by the U.S. Environmental Protection Agency for plug-in electric vehicles,” said Lutz. “And we anticipate a composite fuel economy rating of more than 100 mpg. The Volt’s estimated electricity usage is about 25 kilowatts per 100 miles, about half of what a typical household uses daily”. - [Lutz’s article on ChevroletVoltage.com]

Yes, we are all confused! GM are adamant that the Volt has an official EPA fuel-economy rating of 230 mpg. On the other hand, the EPA says they haven't tested the Volt yet. So really, what's going on? For that, we just have to wait until the Volt comes to showrooms in end of 2010, and see if that is true.

Oh also, the embedded video below is Henderson's announcement of the 230 mpg Chevy Volt.

Refresher:

- 2011 Chevrolet Volt: Production of the 2011 Chevrolet Volt will start in late 2010. The plug-in hybrid electric-car will only drive the battery-powered electric-motor, while the petrol engine will recharged it when needed. The electric-motor can run up-to 40 miles alone on a electric-recharge, and 300 miles when the petrol-engine provides recharging. By running 220 Lithium-ion battery-cells, it produces 150 hp and 273 lb-ft of torque from zero-rpm. 0-60 mph is expected to come in less than 8 seconds, and now the fuel-economy is "rated" at 230 mpg.

Source : [General Motors]

New Reveal : 2010 Holden Commodore SIDI

Introduction:

With many of the rear-drive family sedans are in-dangered species, the Australians are still primarily the ones who make the cheapest and the most fun out there. Yes, we are talking about the Holden Commodore, which the face of Australian RWD family sedan. The Commodore always had either two options, a base V6, and a massive American V8. For 2010 though, the Commodore SIDI line-up, adds a new small V6, a bigger V6, and the usual V8. Though styling hasn't changed, this still looks fresh, but we'll talk about the design when the next-generation Commodore comes-out.
Powertrain:

The 2010 Holden Commodore SIDI will newly come-up with a base direct-injection 3.0L V6, that puts-out 270 hp and 213 lb-ft of torque. Although this is the smallest V6 in a Commodore for the last decade, this V6 is actually as powerful as the current 3.6L V6. However, also for 2010, the 3.6L V6 is now rated at 281 hp and 258 lb-ft; though this engine is now an option. For the outrageous SS V8, it's the same 6.2L L99 V8 found in the new Chevrolet Camaro, so 400 hp and 395 lb-ft of torque. All engines also have replaced the 4-speed transmission, to Holden's new 6-speed automatic, with "Shift Tronic".
Fuel Economy:

The whole point that Holden actually moved-down for a 3.0L V6 as a base engine, is to save-up fuel and less CO2 for the environment. Holden says that the 3.0L engine gets up to 13% better gas mileage than the 3.6L, at 25 mpg at city, and 31 mpg on the highway. The extra power in the 3.6L engine doesn't get in the way of economy, so this engine get the same gas-mileage as last year. The new V8, with its Active Fuel Management, gets 16 mpg city, and 25 mpg highway.

Future Work:

This model-design of this Commodore will only last for 2010. So the 3.0L V6 Commodore is actually is a tease for the next year's all-new redesigned Commodore, that will come in end of 2010, as a 2011 model. Nonetheless, the next-generation Holden Commodore will get a new base engine, which is probably a turbocharged 4-cylinder, and the new 3.0L will be the mid-range, replacing the 3.6L. But we will always get the muscle V8, making this our favorite V8 muscle-sedan.

Source : [Holden via General Motors]

New Reveal : 2010 Chevrolet Camaro Transformers Special Edition

General Motors announced the release of the 2010 Chevrolet Camaro Transformers Special Edition, allowing the "Autobot" fans a chance to become Sam Witwicky and have their very own Bumblebee parked in the garage.
“When the first TRANSFORMERS movie was setting box office records, we had countless customers asking to purchase the ‘BUMBLEBEE’ Camaro,” said Karen Rafferty, product marketing director, Chevrolet. “Now, they can buy one with the new Camaro TRANSFORMERS Special Edition. Streets all over North America will be buzzing in no time.”
So what does this special edition of the 2010 Camaro feature? The 2010 Chevrolet Camaro TRANSFORMERS Special Edition includes the following:

- AUTOBOT® shield on the driver and passenger side panels

- AUTOBOT® shield on each of the four wheel’s center cap

- AUTOBOT® shield embroidered on interior center console

- “TRANSFORMERS” logo on driver and passenger doors’ sill plates

- “TRANSFORMERS” logo embedded into the hood rally stripes

- High-gloss black center rally stripe package

- Manufacturer’s suggested retail price of package: $995
The Transformers Special Edition Package is available on both versions of the Camaro: 304 hp 3.6L LT V6 and the 426 hp 6.2L V8 Camaro SS. Dealers are now taking orders for this edition.

Source : [Chevrolet]

Camaro Recall No.2: Early Chevrolet Camaro SS manual transmission failures reported, factory hold issued

The all-new and re-born 2010 Chevrolet Camaro has just been out in the U.S market, and owners give it the thumbs up, as it's a bargain muscle car and a true sports car. Nevertheless, nothing is perfect in truth. Earlier, some of the first V8-powered Camaro SS had their first-recall of battery issues. Now, more Camaro SS get another recall!

General Motors issued another recall for the new 2010 Camaro. This time, the recall concerns V8-powered Camaro SS models, equipped with a TREMEC 6-speed manual transmission. The problem here, is that a hard launch or using the launch control system occasionally results in a broken output shaft, a serious failure that will most likely leave the car immobile and in need of repair.

Chevrolet engineering teams are still investigating the problem to find the cure. However, the TREMEC transmission is already used in the Dodge Viper, Dodge Challenger, Ford-Shelby GT500, and Chevrolet Corvette; and no issues were found in these cars.

So if you're one of the Camaro SS manual owners, and had this problem, please contact Chevrolet at 1-800-630-2438. Please be advised, drive your new Camaro V8 smoothly, and don't use launch-control.

Source : [General Motors via Camaro5.com]

Cadillac's Future : All-new BLS to compete against BMW 3-Series, XTS as a Lexus ES rival, a compact city car, and smaller Escalade

Now that General Motors emerged out of bankruptcy filing, the new company will head towards lots of changes. Main part of the change, that GM will focus on four brands only; which are Chevrolet, Buick, GMC, and Cadillac. Ultimately, the only true luxry badge here is Cadillac. So what are they going to change?

Well, according to Car And Driver, Cadillac's new cars will get both BMW's driving capabilities, and Lexus' ultra reliability and quality. In fact, rumors that the next-generation Cadillac BLS sedan will finally be a rival to BMW's 3-Series; which many consider it as the benchmark of all small sedans. Nonetheless, the current BLS wasn't quite a hit. That's why rumors around that the new BLS will get a rear-wheel drive platform, which is similar to Cadillac's CTS. Expect to see the new BLS sometime in 2010.

Moving on to another type of luxury, the Lexus ES. The ES is much like a Toyota Camry; it shares its platform and V6 engine. However, the purity in the ES' luxury, and ultimate reliability according to J.D.'s Power List, made it so popular around. Well, Cadillac too, will be coming with an ES competitor. The new Caddy will be known as XTS, which will get Cadillac's award-winning 3.6L V6, connected to a front-wheel-drive platform. XTS may debut in 2010, as a 2011 model year.

Because of enviroment-awareness, and increased fuel prices, the all-time rap singer's favorite, the Cadillac Escalade has to go! However, the large Escalade SUV will be downsized for its next-generation model as it moves to the Lambda crossover platform, which is currently shared by the Buick Enclave, Chevrolet Traverse and the GMC Acadia. Cadillac say that the new Escalade will still have its distinctive looks.

Also in the works is an aggressive-looking, FWD city/commuter car. Currently in planning phase, the “premium small-car project” has been described to be a stunning and affordable Caddy.

As for the XLR roadster, don’t expect to see a replacement, ever! If anything, the model will be replaced by the Chevrolet Volt-based Converj plug-in hybrid.

Source : [CARandDriver]

BREAKING : 'New GM' finishes bankruptcy filing, and sells assets to U.S Department of the Treasury

Eariler this week, General Motors announced that if their new assests weren't approved by the U.S Government, they would have to liquidate. Luckly though, it was announced by a New York judge, that the U.S Government Court approved the sale of most of General Motors Corporation's assets to NGMCO, Inc., an entity funded by the U.S. Department of the Treasury.

So, GM plans on exiting bankruptcy sometime tomorrow, and announcing the new company name with the new 'good GM' assests. Of couse, the new company will be officially called 'New GM', which will be known as General Motors Company. New GM will be supported by a $50 billion in U.S. government loans.

GM CEO, Fritz Henderson, said today "We expect the sale to close immediately after the appeal process is exhausted later this week, and for the new GM to be operational and fully competitive, with an exciting line of new products, a smaller and more focused brand portfolio, and a clear mission to put the customer first in everything we do,"

All we have to say; Good luck New GM!

Source : [Detroit News]

Refresher: GM filed for Chapter 11 bankruptcy protection last June. The CH11 bankruptcy forced GM to cut costs, and close plants. Under the bankruptcy plan, the new company is called 'New GM'. New GM stock will be owned by:
· U.S. Department of the Treasury: 60.8 %
· UAW Retiree Medical Benefits Trust: 17.5 %
· Canada and Ontario governments: 11.7 %
· GM Bondholders: 10 %

BREAKING : If GM can’t sell its ‘good assets’ by July 10, it will be forced to liquidate !

On July 10th, 'New GM' need to report to the U.S. bankruptcy court their latest sales report. However, General Motors CEO Fritz Henderson told U.S. bankruptcy court earlier that if GM can’t sell its ‘good assets’ to a government supported ‘New GM’ by July 10, it will lose access to government funding and would be forced to liquidate. Henderson said that “business is doing better” as customers, suppliers and workers anticipate the completion of a successful deal for the company to become the ‘New GM.’

If a deal is approved, GM will sell its best assets, including its four-core brands (Buick, Chevrolet, Cadillac and GMC) under Section 363 of the bankruptcy code while the U.S. Treasury would provide 30 billion dollars in financing. Sources say that the GM sale hearing could continue for at least two days as the company faces numerous objections from the creditors committee and a group of bondholders.

So by July 10, there could be no GM! So, if you're really fond of GM, support them by actually buying a GM product, to keep them alive.

Source : [Reuters]

Refresher: GM filed for Chapter 11 bankruptcy protection last June. The CH11 bankruptcy forced GM to cut costs, and close plants. Under the bankruptcy plan, the new company is called 'New GM'. Also, the U.S. Government will be financing New GM with $30 billion, taking the majority of New GM at 60%. The Canadian Government will be paying $10 billion, taking over 12%, while the UAW will own 17.5%. GM bondholders will take a 10% stake only in New GM.

BREAKING : Koenigsegg reaches agreement with GM to buy Saab

With General Motors selling out all their 'unprofitable' brands, like Hummer and Saturn, to emerge out of bankruptcy and called 'New GM'. Words now are all around the Swedish-originated, Saab. Well earlier reports were looming on China's Geely to buy Saab. However, with the help of the Swedish Government, the supercar maker Koenigsegg got into the bid, and won it.

Yes, it's official! General Motors announced that it has reached a preliminary agreement to sell the Saab brand to supercar manufacturer Koenigsegg. GM did not release any details on the price tag of the agreement, but said that the sale will include guaranteed financing by the Swedish Govenment.

“The sale, expected to close by the end of the third quarter of this year, includes an expected $600 million funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government,” GM said in a statement.

However, GM still has some stake in Saab. Therefore, GM will still provide Saab with platforms, engines, and technologies. Additionally, Saab plans to produce its next generation 9-5 models in the Saab production facility in Trollhättan, Sweden.

“Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab’s operations and product program investments.” GM said in another statement

As for the new owner, Koenigsegg was founded in 1994, and has 45 employees and output of only a handful of cars a year. However with the match power of Swedish luxury and power, we'll probably see new Saab cars, that have some supercar inspiration.

Source : [General Motors]

Report : GM rolls off the 1,500,000th Chevrolet Corvette since 1953 !

The Chevrolet Corvette. The American milestone that cracks Europe's sportscars on quarter-mile drag races. It's been since 1953, and the recipe never changed. A big-block GM V8, manual transmission, and rear-wheel drive; all crafted into a light-weight fiber-glass body. Even with the latest C6 generation, it only has changed to become a better all-round sportscars. However now, customers can choose from lots of variations of the 'Vette, which starts with a $50,000 base C6 Corvette with or without the Grand Sport package, and a $70,000 7.0L Zo6, all the way to the $100,000 Nurburgring-lap record breaker, the superchaged LS9 ZR1.
Well, along generation after generation, GM now reports that it has finally built the 1,500,000th Corvette ever produced! The 1.5 million Corvette, produced on May 28, is a white convertible 3LT with a red interior and a black top. “The 1.5 millionth Corvette is a great example of how Chevy is America’s Brand,” Karen Rafferty, Chevrolet Product Marketing Director, said. “For nearly 60 years we have built America’s Sports Car and this milestone is a solid proof point.”
The first Corvette ever rolled off the assembly-line on June 30, 1953. There it was, an American dream car was born. So although from-time-to-time the 'Vette had its downfalls, kudos to GM to stick with the Corvette, that now, the Corvette is absolutely one awesome machine to drive!

Source : [General Motors]

BREAKING : Former AT&T chief Edward Whitacre Jr. officially named chairman of 'New GM'; and admits: "I don't know anything about cars."

With GM's Chapter 11 bankruptcy filing, the 'New GM' gets a new management. So following the replacement of former CEO Rick Wagoner with Fritz Henderson, the General has announced its new incoming chairman: Edward E. Whitacre, Jr.

Whitacre is perhaps best known for his seventeen-year tenure as chairman and chief executive of AT&T, overseeing mergers and expansions that made AT&T the largest telecom company in America. He holds a degree in industrial engineering from Texas Tech, and also serves on the boards of ExxonMobil and BNSF Railway.

However, with an interview with with Bloomberg, Whitacre said: “I don’t know anything about cars. A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.” We think a GM chairman should atleast have some knowledge about cars, even if it meant business.

On GM's side, GM thinks that Whitacre is a "good choice" of their chairman position. The 67-year-old Whitacre will be officially get his chairman position on August 31rst, when 'New GM' is launched.

Source : [General Motors via Bloomberg Image: Mark Wilson/Getty]

BREAKING : GM agrees to sell Saturn to Penske Automotive Group

With the Chapter 11 bankruptcy looming on General Motors, GM are cutting costs as much as possible. Well, first as GM sold Hummer to China's Sichuan Tengzhong for Heavy Industrial Machinery, GM also intended to sell Saturn. Well, earlier reports that 16 companies were interested for the purchase of Saturn. Saturn is the GM brand that ships Opel vehicles to the States.

It is officially reported that General Motors has reached an agreement to sell Saturn to U.S.-based Penske Automotive Group. The source said that Penske will pay $100 million to $200 million for Saturn, winning the bid over the other 16 companies. Penske are known as the second-largest retailer in the States.

Like the Hummer deal, Saturn's new owner plans to keep Saturn's same factory plants and dealerships, which will help save more than 350 dealerships and 13,000 jobs at 'New Saturn'. Penske also announced that Saturn's Aura sedan, Vue SUV and Outlook SUV are kept into production, but the Astra and Sky are 'dead'.

Source: [The New York Times and Bloomberg]

GM branches: HUMMER purchased by China's Sichuan Tengzhong; Koenigsegg interested in SAAB; 16 buyers interested in Saturn; Holden safe from bankruptcy

It just been days, that General Motor announced that it's entering Chapter 11 bankruptcy protection filing, which should clear off into a "New GM", that should be into the new business within 90 days. Well, GM immediately headed off for new changes. It was earlier reports that GM will focus on less brands and less cars, to produce better quality and better service.

Well first up, Hummer. It was reported earlier that two Arab investors were interested in buying Hummer's stake. However, it was announced today GM and China's Sichuan Tengzhong for Heavy Industrial Machinery reached a deal into the purchase of Hummer. That right, Hummer is now fully-owned by a Chinese company! GM said that Tengzhong is a "privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment." On Tengzhong side, they announced that Hummer will still be manufactured in the U.S, which will secure more than 3,000 American jobs in factories and management. Tengzhong plans to produce more Hummer fuel-efficient trucks, and spread Hummer dealers worldwide. - [The New York Times]

In other GM brands, there's Saab. Saab was once asking their originated Swedish government to take loans for their independence from GM. However, GM is still considering any profitable bids from other companies to sell it to. Well, it was also once reported that China's Geely automaker is in fact interested to buy stake in Saab. Joining Geely, a report from the Swedish financial daily newspaper, Dagens Industri, Sweden's own supercar builder Koenigsegg, is now one of the parties interested in buying General Motors' Saab brand. GM announced that Saab's new owner should be decided by end of June. - [Reuters]

GM is also considering on selling Saturn. Saturn is the GM brand that ships Opel vehicles to the states. Well, now after GM have sold Opel to Canadian auto part Magna, Saturn is in a deep downfall. Nevertheless, 16 companies (GM weren't allowed to announce who they are) are bidding for the purchase of Saturn from GM. The sale of Saturn should help GM repay some of its debts. - [Detroit Free Press]

Finally, there's General Motor's Australian branch, Holden. Holden is responsible for such great cars like the Holden Commodore (Pontiac G8 in U.S. and Chevrolet Lumina in the Middle East), and the all-new 2010 Chevrolet Camaro that shares platform with the Commodore. It was stated today that GM intends to keep its relationship with Holden, and that it's safe from any bankruptcy terms. "We don't anticipate GM's bankruptcy will have any direct impact on Holden's workforce, dealers, or suppliers," said Holden Chairman and Managing Director, Mark Reuss. GM also announced that Holden will be a big part of the 'New GM' after the bankruptcy Chapter 11 filing. - [Stuff.Co.Nz]

BREAKING : GM files for Chapter 11 bankruptcy, to be owned by the government, closes factories, and Opel/Vauxhall sold to Magna !

As many know, the start of June today, is the day that decides General Motor's last deal. Well, the die is cast: General Motors has filed for Chapter 11 bankruptcy protection in a New York court. Listing $82 billion in assets and $172 billion in debts, GM already fell into a liquidity predicament. That's why, GM is going to need to cut any "bad" assets as a part of "Bad GM", and will only keep the profitable assets as part of "Good GM". Then, Good GM is going to split into new owners, beginning a "New GM" to start restructuring. The Chapter 11 bankruptcy filing should take from 60-90 days.

Speaking of the new owners, GM's stake will be shared between the President Obama Administration, the Canadian Government, the United Auto Worker (UAW), and GM bondholders. The U.S. Government will be financing GM with $30 billion, taking the majority of GM at 60%. The Canadian Government will be paying $10 billion, taking over 12%, while the UAW will own 17.5%. GM bondholders will take a 10% stake only in GM. Nevertheless, GM will still run its own board directors and management.

As a part of the restructure and new owners, GM will surely cut down any unprofitable costs or assets. General Motors announced that it will close or idle 14 plant factories and three Service and Parts Operations in the United States. Michigan is hit the hardest as it will see five plants being closed while another two factories will be idled. Under the new reconstructing plan, GM will reduce the total number of assembly, powertrain and stamping facilities in the U.S. from 47 in 2008 to 34 by the end of 2010 and 33 by 2012. The automaker said it will achieve full capacity utilization of its assembly operations in 2011.

To limit their costs to repay their debts, GM also announced that it has come to terms into selling Opel and British sibling Vauxhall. According to a report by Reuters, GM and Canadian auto parts group Magna International have reached a deal to invest in Opel/Vauxhall. GM and Magna also got the agreement from the German Government to sell stake in Opel. Magna and GM have signed a memorandum of understanding that will reportedly help Opel secure some 1.5 billion euros ($2.1B USD) in bridge loans, as well as shore up protections against creditors in the event of a GM bankruptcy. More interestingly, GM will still hold of 35% of Opel, which will still allow them to share technology and parts with the new Opel. Opel workers themselves will end up with 10% of the company as well.

Below, we have three videos:

1) The official President Obama speech, announcing GM Chapter 11 bankruptcy filing.

2) GM CEO Fritz Henderson comments on the bankruptcy, and announces restructuring plan.

3) GM Reinvention commercial, explaining the bankruptcy case and plan in a basic form.

Source : [Detroit Free Press, NewsY, GM Reinvention, Reuters]

Report : GM reach agreetment with UAW and CAW unions, but bankruptcy still "probable"

June 1, which is just a week away, is the deadline that President Barack Obama and his Auto Task Force Department have decided for GM to show their new full viability plan on which it will decide to seek loans, or force into Chapter 11 bankruptcy filing. Well, General Motors is still doing is best to avoid that.

GM and the U.S. Treasury Department have reached a deal with the United Auto Workers (UAW), one of the key hurdles that GM needs to clear before its June 1 deadline to avoid bankruptcy. UAW said that the deal is similar to the Chrysler deal. That means, GM is going to spend about $10 billion covering for worker insurance while working for the company's factories, and even at retirement.

GM also needs to please the Canadian Auto Workers (CAW) union, because GM also builds cars in Canada. Gladly, it's reported today that General Motors and Canadian Auto Workers have reached a deal that will help the automaker cut costs, allowing it to meet the terms for additional government loans. Ken Lewenza, head of the CAW, said it was "a struggle" to reach a deal with GM, but he added that the union had done the best it could under the circumstances, saying: "we have protected most of our core benefits."Like the UAW deal, GM has to offer a lot of benefits to the factory workers. The deal also keeps GM's plants in Oshawa, St. Catharines and Woodstock open for the foreseeable future.

So with Workers unions on GM's side, will it really help avoiding Chapter 11 bankruptcy? Well, auto analysts say that even if the new agreement is ratified, it may not be enough to keep GM out of bankruptcy court. GM is still trying to get creditors, that hold $27 billion of its bonds, to accept a debt-for-stock swap. CEO Fritz Henderson has previously said that it may be difficult to reach an agreement with bondholders, making bankruptcy “probable.” So we are probably going to see GM falling with Chrysler into Chapter 11 bankruptcy.

Source: [CNNMoney and CTV]

GM hosts ‘V-Day’ in Shanghai with some brave stunts in lots of Cadillac CTSs

General Motors has just launched the new 2009 Cadillac CTS and CTS-V into the Chinese market. The celebration of launch was held in on the F1 circuit in Shanghai. GM were actually celebrating the come of the CTS-V and other V-Series Cadillacs, as they called this event 'V-Day'.
Around 19,000 fans gathered at the F1 circuit for the launch of the CTS and CTS-V in China, while a team of professional stunt drivers from Hollywood put on an incredible show to ‘wow’ the crowd. These 'indescribable' stunts they made with these Cadillacs aren't done by normal Cadillacs. So these stunts won't be seen everyday

Watch the 'V-Day' stunts video below. Trust us, it's worth watching.

Source : [Cadillac Notes via YouTube]

For new Camaro owners: First recall to the 2010 Chevy Camaro

The all-new and re-born 2010 Chevrolet Camaro has just been out in the U.S market, and owners give it the thumbs up, as it's a bargain muscle car and a true sports car. Nevertheless, nothing is perfect in truth.

General Motors announced to the new 2010 Camaro owners, reporting an issued recall of the Camaro. The recall concerns 1,243 V8-powered Camaro SS over an issue with the battery cable. Turns out that the positive battery cable has been positioned too close to the starter motor housing. According to GM, the cable may come in contact with the starter motor, wearing the insulation and potentially causing the vehicle to stall without the ability to restart, or even result in an engine compartment fire, though no such case has been reported.

GM said that its dealers will reroute the positive battery cable to ensure adequate clearance. So if you or anybody that has a 2010 Camaro SS with a V8, contact Chevrolet at 1-800-630-2438 for more detailed information.

Source : [General Motors]

Potential Buyers : Renault is interested in Saturn, Geely in Saab, Arab inverstors in Hummer, and Pontic not for sale !

With General Motor's new viability plan, which states the death of Pontiac, and "the resolution" of Saturn, Saab, and Hummer, companies and investors have come to GM to ask for the purchase of these companies.

To start with, Wall Street Journal reports that General Motors’ talks with selling Saturn to Renault SA, giving the French automaker a “launching pad for growth in North America.” Just like Chrysler is being saved by Italian Fiat, there is now a high chance that Saturn will be saved by French brand Renault. - [WSJ]

Saab, which GM is also looking to sell got a bid from Chinese Geely, which just few weeks ago made a bid for Volvo as well. It might be that Geely pressures Ford with that new bid to sell Volvo. Who knows maybe Geely will end up owning both Swedish automakers. Just like Indain Tata now owns both British Jaguar and Land Rover. - [WSJ]

As for Arabs, they want gas-guzzling off-roaders. According to GM's Middle East Managing Director, Terry Johnsson, a pair of Arab investors are interested in Hummer. Reports that Hummer is worth from $100 - $200 million. Hummer's new owner should be announced by GM within a few weeks. - [The Associated Press]

Lastly, Pontiac. The "phase-out" of Pontiac was a surprise to us all, and many still couldn't move on. Specially that many Pontiac dealers might get broke by it, one local Pontiac dealer owner, Jim Waldron, said he and other investors had offered GM money to buy the Pontiac brand and numerous plants from them. They would hire their own workforce and try to restart the rather strong brand. However, GM have turned them down by saying "Pontiac is not for sale at the moment." So does it mean that GM has plans someday to bring back Pontiac? Well, we have to optimistic. - [WJRT]

Top 10 best Pontiacs of all time

With the death of Pontiac, we really ought to remember what was so great about Pontiac. First, some history: Pontiac was first launched in 1926 as a companion to the Oakland brand, which was purchased by General Motors way back in 1909. In 1949, Pontiac introduced a brand new model that was intended to usher in a new sporty flair to the automaker's stately line of automobiles. Though the new model was fairly successful, it was held back by the long-running straight-eight engine that had been used since the early 1930s. And since then, Pontiac is known as the sporty brand in GM. So some were fantastic muscle cars.

THE BEST:

10. 1955 Pontiac Catalina:

This has started it all. It was nothing like the line-up from Chevrolet. This was actually the first Pontiac to feature a classic V8 engine, at which GM didn't know. So since then, Pontiac would hone its image as GM's performance brand.

9. 1963 Pontiac Tempest:

Where everyone thinks that the Ford Mustang that started the compact sports car, it wasn't actually. It was this, the Tempest, which originally was revealed in 1961. But the 1963, got upgrades that made it a technological showcase at that time. Where it featured a 326 cubic-inch V8 engine, the weight distribution was 50/50. Because it also had four-wheel independent suspension, it handled like something new to that age, a true sporty feeling that was even better than the Mustang.

8. 1964 Pontiac GTO:

While the Tempest was designed to be a sports car and care about handling, Pontiac went back to roots, and thought big. They've invented the GTO, which was the start of the muscle car era. It was way bigger and heavier than the Tempest, but became so popular, that it inspired an entire genre of performance cars in America that followed. With a 389 cubic-inch V8 engine, that developed 348 hp, there was nothing that was as fast as the GTO.

7. 1969 Pontiac Grand Prix:

We can't mention Pontiac, and leave the Grand Prix behind. The Grand Prix was the definitive Pontiac of the late '60s. Pontiac were still building the GTO, but the Grand Prix is a even bigger, but more luxurious. However, this wasn't a muscle car, it's best described as the "bad-boys" criminal car that is best suited for the Mafia. Specially that the 390 hp V8 engine was more powerful that the police can catch.

6. 1969 Pontiac GTO The Judge:

With the success of the original GTO, Pontiac decided to come up with a more muscular version that was an eye-candy, but still scary in its way. The package for the 69 GTO called The Judge, which combined bright colors (often an orange hue Pontiac called Carousel Red), loud graphics packages and a rear spoiler to stand apart from lesser models. However, Pontiac also offered a RAM VI to the 389 cubic-inch V8 engine, to pack overall 377 hp. That time where muscle cars were the "its" cars in America, Pontiac decided that it was the last GTO to come.

5. 1973 Pontiac Trans Am:

This was the replacement to the GTO, the Trans Am. With the Trans Am, Pontiac came up with a rival to the Ford Mustang, and introduced the f-body muscle car design. The Firebird up-front on the hood that was added as an option, made the Trans Am one of the best looking muscle cars. With a 455 cubic-inch V8, which was factory rated at 310 hp, it had less power than the GTO. However, the Trans Am's bigger engine, but lighter body, meant it had more torque than the GTO, which made it a serious fast-back muscle car as well.

4. 1978 Pontiac Trans Am:

In the late '70s, the refreshed Trans Am took the t-top shape as it defined an entire decade of American performance. In its age, this Trans Am was featured in most of movies as the "chase car". In the being of the '80s, the Trans Am was also the KITT car of Knight Rider. Of course, performance was down compared to what was available at the start of the decade, but Pontiac still offered a 220 hp 400 cubic-inch V8 engine mated up to a four-speed manual transmission. However, it was in the late '80s, early '90s that Pontiac has given up on its love of fast cars and outlandish in-your-face muscle cars. So this was the last proper Pontiac muscle car.

3. 1984 Pontiac Bonneville:

The Bonneville was always in the shadow of the GTO and Trans Am. Until the '80s, where both muscle cars were dead. At that time when GM and Pontiac switched to the X-body style, the Bonneville was converted to a four-door sedan. While that seemed weired and hateful, the Bonneville was the start of the American sports sedan. It underpinned a Caprice, but the Bonneville was shorter in length and had a sharper look. This Bonneville also featured sport bits that weren't in the Caprice. The 305 cubic-inch V8 was more powerful too. It seemed the '80s showed the entrance death of muscle cars, but this Bonneville kept some true Pontiac DNA.

2. 2005 Pontiac GTO:

We move from the mid '80s, to the beginning of the new millennium. While it's a big step, however there wasn't anything special in the time-line margin. In the '90s, most American cars were bad. They lost their steam, and became agricultural. But in 2002, Pontiac brought the GTO back to life. Although it was an Australian import from Holden, the 5.7L V8 was pure American LS1 engine. Later on, a LS2 6.0L replaced. However, this GTO was aimed at the modern-day Ford Mustang, which the GTO couldn't win. While the GTO had 375 hp, it was heavier and therefore slower than the Mustang. Even so, the GTO's price tag was more expensive by around $5,000 because of high import rates. So it was a sales-failure, but it was also an inspirational-success to see Pontiac back to its ogrins and roots.

1. 2009 Pontiac G8 GXP:

This was the last Pontiac ever produced. And what a great way to end 83-years of great American motoring. The G8 GXP has fixed all the GTO's problems. Despite still being a Holden import, the G8 has changed to a four-door sedan to change its competition class, to cars like the Dodge Charger. But as an Australian build quality, it was more aimed to mid-size luxurious like the BMW 5-Series. In fact, the G8 GXP's price tag of around $36,000, it was barely the price of a base 5-Series. Nevertheless, the G8 GXP's powertrain, which is a 6.2L LS3 V8 with 414 hp, which launch it to 60 mph in 4.6 seconds, it was actually a hit on the M5. So the G8 GXP ended up as a true performance bargain.

This ends my tribute to Pontiac. If you've got any better Pontiacs that you think is one of the best, tell us about it in the comments.