The thing with business is it really is a dog-eat-dog world. Falter and your competitors would be more than happy to kick you while you’re down.

Toyota might be the biggest automaker today after GM went bust but it might not be able to hold on to the title for long. Especially with mighty Volkswagen eating away at the lead and, of course, in the light of one of the biggest recalls in history.

An accelerator problem prompted Toyota to recall millions of vehicles worldwide. The company even halted US sales of select models until its engineers figure out a permanent solution to the problem.

Ready to pick on the wounded giant are GM, Ford, Chrysler and Hyundai who are offering Toyota customers incetives on trade-ins.

Chrysler is offering $1,000 bonus for Tundra, Tacoma, and Sienna owners who’d want to get any new Chrysler, Jeep, Dodge or Ram. A similar $1,000 offer is made by Hyundai for any new takers of a Sonata, Elanta, and Elantra Touring.

Call it honor, but Toyota’s biggest Japanese rival Honda which has been permanently trying to pip Toyota’s model range, takes the high road in not trying to steal Toyota’s customers in such a manner.

And we all really thought Saab will be a dead brand. General Motors and Spyker has confirmed that they have reached an agreement for the sale of Saab.

That should be great news from everyone involved with Saab. It should be a great acquisition for Spker. GM could now breathe a sigh of relief. And Saab fans should be very well pleased.

The deal would result in a formation of a new company merging Saab and Spyker – Saab Spyker Automobiles.

And even though GM announced a continued wind-down of Saab operations, reports have it that the 2011 Saab 9-4X is already being produced in limited volumes. Maybe that should give Spyker a bit of headstart in sales.

Anyway, this is great news for everyone who makes a living with Saab and at least, a 60 year-old car brand wouldn’t simply bite the dust.

It’s Official. Ed Whitacre, former AT&T boss appointed by President Obama to take care of GM, will be staying on to serve as both CEO and chairman of General Motors.

He had been searching for a replacement but settled on the fact that that he probably is the best man for the job. Not that it’s easy work to keep a company running especially one that has just came out of bankruptcy.

Whitacre claimed that GM will be paying off its billions of dollars of government bailout money that it got due to the economic downturn last year. The company is practically owned mostly by the US and Canadian governments and labor unions.

As for the Saab deal, Whitacre claims that there has been no solid offer yet.

How many defibrillator shocks would Saab get from General Motors? Saab seems to be clinically dead for too long that I fear that any chance it would back would either be brain damaged or as a zombie.

In a last-ditch effort to save the brand from complete closure, GM said it will entertain bids after its previous talks with Swedish supercar maker Koenigsegg fell square on its ass.

Spyker was seen to be the last possible and most viable savior of the Swedish brand but it seems that its effort to raise proper funding to enter a deal with GM has been in vain. Or delayed at least.

Around 3,400 workers will be without jobs if the company will not be bought out as GM planned for its closure if no viable deals can be made to save it.

Just when everyone thought that Saab is dead, General Motors and some group come up with further talks and negotiations. Spyker just might give Saab its breath of life.

Saab was nearly declared dead by General Motors when talks with Koenigsegg fell square on its ass. Danish automaker – Spyker – then entered the picture.

However, Spyker’s financials had General Motors thinking hard about the viability of the deal. GM already wanted to end talks with Spyker last December 18 but Spyker seems insistent on buying the brand.

GM has given Spyker a bit of hope as GM handed Spyker a January 7 deadline to sort out financing options for it to buy Saab. Else, GM will continue shutting down the brand.

GM also received a number of bids from other groups but they lacked both the financial and industrial capability to be viable candidates.

That’s it folks. GM has decided that it will close down Saab. There were no real takers after the deal with Swedish supercar maker Koenigsegg fell square on its ass a few weeks ago.

Not even Spyker, the latest giver of hope for the brand, can save it from doom. GM acknowledged that it wasn’t viable to close a deal with Spyker and the best decision is for it to close down the brand.

It’s really a business decision for GM. The brand’s continued existence is costing GM money that it doesn’t really have. It’s not like Saab has been rolling out cars since the automotive sales crash.

Shades of Saab will still be seen in BAIC cars since the Chinese company bought tooling rights to the 9-3 and the 9-5. But that just means that only a strand of DNA will be all that’s left of Saab.

So who’s to blame for this? We do think that GM has really made a hash of things and Saab biting the bullet is just one of its ill-effects.

Saab, 62.

Source: CAR

This is classic 80s corporate America. GM president and CEO Fritz Henderson got booted out by GM’s board in what reports are calling a “shock coupe.” Hostule takeovers are just part of it.

Reports imply that Henderson’s push for the sales of Opel to Magna and the closure of Swedish brand Saab. The board seemed not to be too pleased with the

Failed sales and takeovers as a reason for booting out chiefs aren’t really news. Remember Wendelin Wiedeking with Porsche?

The GM board is pushing for the speedy implementation of the reforms that are needed to put GM back to profitability in order to be able to repay the American taxpayers the bailout money invested in rescuing GM.

Obama-appointed GM chairman Ed Whitacre will temporarily take Henderson’s vacated positions while they search for a replacement.

Source: AutoCar

Even after some time since General Motors agreed to sell its Hummer brand to Chinese company Sichuan Tengzhong Heavy Industrial Machinery, the proposed deal is still being criticized and opposed by certain parties in China, from the government to the media to people in the car industry.

Here are just a few examples of how enthusiastic the Chinese are about the Hummer sale. A Chinese news agency colorfully likened the deal to “a snake attempting to swallow an elephant.” A member of the Chinese Communist party questioned whether the deal was actually an “international joke”. The Xinhua News Agency says that the move is just a bid by Tengzhong to heighten publicity and increase capital.

The Chinese Ministry of Commerce added further fuel to the fire of criticism, advising similar Chinese firms that want to go global to “learn more about international market rules and development trends in their industries and make prudent investments.”

This spells a bit of bad news for GM, which is itching to unload its struggling brands to kick off its restructuring plans.

When former GM Chairman and CEO Rick Wagoner tendered his resignation, most people thought that was it. It was the end of an era, one that can be looked upon as good or bad. Wagoner, though, is still set to receive some $20 million for his retirement package.

Surprised? In fairness, Wagoner won’t get the entire sum in one go—according to ABC News, the $20 million comes in the form of benefits that will be given to Wagoner over time. What this duration is and the details have yet to be revealed.

Wagoner was forced to leave GM as part of a reorganization that was a stipulation for added loans from the United States government. It should also be noted that added guidelines laid down by the Obama administration, particularly the Treasury Department, prevent Wagoner and other top executives from getting paid out in terms of severance benefits.

While Wagoner’s tenure has some questionable figures attached to it—47,000 jobs lost and GM getting mired in over $13 billion in government loans—some still see Wagoner’s efforts in turning around GM’s fortunes before the shit hit the fan and before the economic crisis hit really hard.

Source: Motor Authority

The government is setting really tough moves to get the US out of the economic mess that it’s in. If it involves chucking out CEOs to help corporations restructure, then so be it. First to go was General Motor’s CEO Richard Wagoner who was reportedly asked to step down by the administration’s Auto Task Force.

Wagoner has been GM’s CEO since 2000 and chairman since 2003 was at the helm for the most part of GM’s grim spell. In his watch, GM posted record losses and saw their stock value chopped to half. Wagoner, among the other auto chiefs received stern reprimand after arriving in corporate jets to show up in Congress to ask for aid.

Assuming the new role is Fritz Henderson, GM president and Chief Operating Officer. In a quote in their official press release, Kent Kresa, GM currently non-executive chairman of the board of directors says:

The Board has recognized for some time that the Company’s restructuring will likely cause a significant change in the stockholders of the Company and create the need for new directors with additional skills and experience. The Board intends to work to nominate a slate of directors for the next annual meeting that will include a majority of new directors taking into account the addition of new directors, retirement, and decisions by individual directors not to stand for re-election, although the specific individuals who will be nominated or choose not to run or leave the board are not yet known.

Source: GM

You know what they say: The bigger they are, the harder they fall. Such is the case with General Motors, which posted a $31 billion loss for the entirety of 2008, the biggest reflection of a beleaguered and struggling industry in these financially-dire times.

In the fourth quarter of 2008 alone, GM’s profits were down 34 percent. For that period, the company spent a whopping $5.2 billion, which is considerably more than the $4 billion in loans that the US government handed the company as part of a massive bailout package involving the other floundering members of the so-called Detroit Big Three automakers.

As GM lays “awaiting advice on whether it remains a going concern”, debts and operating costs keep piling up with no end in sight. The government is keen on keeping GM afloat to offset the possibility of having too many people from such a big corporation unemployed.

The situation looks really bleak, and it’s going to take a lot of work on both GM’s and the government’s part to get out of this hole.

Source: Autocar

Bob Lutz, the vice chairman of global product development at General Motors, will be retiring at the end of the year. He will step back into a reduced advisory role starting in April, providing “key product initiatives” and global design insights for the company until his retirement come December 31.

According to Lutz, his greatest accomplishment was the creation of a bond between the United States and Australia as he fostered the increased role of Holden within GM. Rick Wagoner, as he announced news of Lutz’s impending retirement, described the man as “a legendary automotive product guy” even before rejoining GM’s ranks back in 2001.

“I’m looking forward to Bob’s continued contributions to GM for the remainder of 2009 – and I know the impact of his efforts leading GM global product development will continue for years to come,” Wagoner added.

Lutz is a hero for Holden and Australia, as his initiatives have helped forge global product development for GM. “The work on the GTO with Australia,” Lutz said, “forged an important bond and got us to unify everything: common processes and common testing. I am proud to say that was my initiative. That’s my proudest accomplishment.”

Source: GoAuto

In its bid to secure a $12 billion government bail-out for the Detroit Big 3 automakers, GM reportedly is planning to ‘shed’ three of its brands—Saab, Saturn, and Pontiac. This is part of GM’s viability plan, which the government required of bail-out seekers before it releases even a cent of the money.

This goes against a previous statement made by GM that only the Hummer brand is up for grabs. However, GM is being advised by members of Congress that letting some of the company’s eight brands would help any turnaround plans. Additionally, the automaker really needs the bail-out money; it needs at least $11 billion at any one time to operate—an amount that GM might not have when 2009 starts unless it gets government aid.

The question now is who would really buy any car brands these days? With the economic crunch and the current state of the automotive industry, there might be little incentive for investment groups to take on the challenge of handling any of the shed brands. All brands are down significantly when it comes to sales. If the plan pushes through, GM will be left with Chevrolet, Buick, Cadillac, and GMC.

Source: Bloomberg

The directors of General Motors are rumored to be discussing filing for Chapter 11 bankruptcy, following Senate’s rejection of the Detroit Big 3’s bail-out bid.

While the board did discuss filing bankruptcy, it is also reported that the members did not really find it a feasible or acceptable solution to the company’s current financial problems. GM CEO Rick Wagoner had stated previously that GM would not go the bankruptcy route, since this would discourage most patrons and prospective buyers.

GM has been losing over $2 billion each month over the last three months, and could run out of money by year’s end. Just this November, GM expressed that the company might not be able to service any debts unless it gets a bail-out (which it didn’t, along with Ford and Chrysler).

Tony Cervone, a spokesman for GM, told The Wall Street Journal that the GM board is exploring every possible avenue just to prevent having to file for bankruptcy, especially Chapter 11. Their last chance could come in December 2, when House and Senate committees will view the Big 3’s new proposals on how they will use the $25 billion bail-out money for viability.

Source: Motor Authority

In a last-ditch effort to stop the bleeding of rapidly-sliding revenue, General Motors (GM) has announced that it will launch its red tag sale on November 4, and the sale includes cash incentives of up to $3000, rebates, and price drops. The sale, which lasts through January 5, 2009, is the automaker’s last stand in a bleak fiscal year that saw

GM reportedly will offer up to nine grand off even some of the later models, including certain 2008 and 2009 cars. On top of the red tag sale across dealerships, there will also be targeted incentives programs through direct mailing, which includes discount coupons for $2000 off on ’08 and ’09 most models. Additional rebates will also be given on selected models. All GM brands are covered by the sale, with only a few GM cars excluded. The Cadillac CTS-V and the Corvette ZR-1 are among those not included in the sale.

The sale allows consumers to purchase GM products almost at supplier’s price. With the holidays approaching and with all the incentives and rebates offered in the sale, perhaps many people will not be as reluctant to shell out cash to purchase eligible cars.

Source: Auto News

Doomsayers might as well be soothsayers with the way the US car market is shaping up these recent weeks. With General Motors and Chrysler talks ongoing on a possible merger, experts fear that given GM’s already shaky outlook that we might soon see the fall of two of Detroit’s big three.

GM and Chrysler have announced more job losses to further cut costs and even new models are put on hold to further curb spending. A few of the models currently shelved are Cadillac CTS Coupe and the Buick Lacrosse.

With US’ credit economy failing, both GM and Chrysler are in deep shit financially. Experts consider the merger only likely if the federal government steps in to help both companies. GM asked the US Treasury for a $25B loan package to help the company inch its way back to more solid footing.

The situation is even made more complex by the coming US elections. With presidential candidates having different economic and energy policies. John McCain wants to $25B loan to materialize first before doing anything else. Barack Obama wants to double the loan package with the condition that the companies build economical vehicles from the money.

Source: Autocar

Chrysler fans may weep for the possible demise of the name and badge they have so loved. Chrysler has been quite a part of Americana that I’m sure this move will alter the face of American motoring. In an effort for both companies to stay afloat, there is a possibility for General motors to absorb Chrysler LLC.

That’s 83 years of Chrysler goodness to be swept under the great GM rug. Chrysler’s major stockholder – Cerberus Capital management – is planning to shift all its 88% of sticks to GM’s possession. This scenario is similar to what happened in Chrysler’s acquisition of American Motors Corporation back in 1987.

Some experts view this as an aggressive competitor buyout as GM would definitely benefit from eliminating Chrysler as a competitor. Try to visualize a Viper with a GM badge? Ugh.

Source: Detroit News

General Motors might be staring at Davy Jones’ Corporate Locker but execs are intent on keeping their ship afloat. America’s largest automaker made a statement last week that bankruptcy will not be an option for them. Quite a bold statement given the company’s bleak standing.

Market experts have been saying that it is only a matter of time before General Motors files for bankruptcy but GM countered these by releasing a statement indicating that they would not. The statement says:

“Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers and we believe speculation about a possible filing is exaggerated and unconstructive.”

After suffering from diminishing stock value and sales slumps for the good part of the year, GM is not only valued at less than $3 billion, with shares at around $4.75. They started with stocks valued at more than $10 each.

And perhaps the first sane move from GM this year. GM has decided not to join the Super Bowl advertising frenzy in an effort to cut costs. They’ve also opted out of advertising in big TV events like the Emmy and the Oscars.

GM has spent $77.1 million for advertising during the Super Bowl over the past 15 years and had been one of the biggest sponsors for the telecast. However, the floundering automaker is set to cut back on spending and increasing funds this year, hoping to trim down spending by $10 billion and raising another $5 billion through selling assets and securing loans.

Some old school marketers would probably think that this is a bad move and that GM should be diverting more funds to marketing than ever. But come on, who doesn’t know of GM? Opting out of a Super Bowl readily translates to money saved.

TV spots are always a gamble. It rides on whether you can move X number of people to buy your product and offset the millions of dollars you spend producing and airing the commercial or not for it to be a success or not.

Source: Detroit News

I love how Stephen Colbert eventually got out of Jon Stewart’s shadow and be king of his own show. Forget Bill O’Reilly, Stephen Colbert does it better. Anyway, it was GM’s Bob Lutz’ turn to be invited to the show and boy, did he get the treatment from Colbert.

Fresh off celebrating GM’s 100 years (and crying over the billions of dollars lost in recent years), GM unveiled what could be their saving grace – the first mass-produced plug-in hybrid – the Chevrolet Volt.

Heck, Bob Lutz is just so damn outspokenly proud of the thing that it’s interesting to see him on The Colbert Report. Colbert throws in some really uncomfortable questions into the mix and Bob Lutz answers with some flair.

But the Chevy Volt getting you laid? Let me just laugh. Ha. Ha. Ha.

Whew. This posting blitz has been all about hybrids. I’ll try to look for other newsbits on non-hybrid vehicles after this but hey, General Motors just celebrated its 100th birthday so why not give them a feature that isn’t related to other automakers. Thanks to the YouTube gods, we finally get this video featuring GM’s plug-in hybrid, the Chevrolet Volt.

GM’s saving grace? Check it out.

Now to add some more on the GM/Toyota-Volt/Prius wars. Never mind if GM just celebrated their first 100 years but Toyota was a real party pooper. With their Prius being threatened by the launch of the Chevrolet Volt, Toyota lobbies to lawmakers that the Volt shouldn’t receive any special tax breaks. The plug-in Prius and the Volt (also a plug-in hybrid) are set to duke it out in 2010.

This lobbying is based on the tax package currently under consideration in the Senate where a $7,500 rebate is in store for plug-in hybrids with batteries rated a 6kW or more. It just so happens that only one plug-in hybrid fits that criteria – the Volt.

Toyota has only started testing their plug-in Prius and its specifications doesn’t meet this tax break. Whether we’re seeing a darker side to Toyota (who’s just intent on leaving floundering GM to dust), or they’re just trying to level off the playing field for everyone else, only Toyota knows.

Source: Automotive News (subscription reuquired)

Perhaps a wise move done a little too late. GM had been struggling for years now losing billions upon billions a year. With the cranky US car market and the shunning of the SUV, it looks like it’s too late for GM to dispose of Hummer as a brand. Still, they’ll be letting go of Hummer next year.

How unprofitable a brand is Hummer? Well, they only just lost $51B over the past three years and with the sale, they’re hoping to get get back at least $15B through cost-cutting and liquidation of assets. Makes you wonder why they’re trying to do these things just now.

Well, given the status of oil and the SUV, there are still parties interested to take-over Hummer and needless to say, they’re from the Gulf Arab region. Oh man, if only oil sports out of my back yard, I’ll be driving Hummers too.

Source: Automotive News (subscription required)

More GM madness with this newsbit. This is one thing that the company can’t afford right now. Recalls cost a lot of money and they just won’t be recalling a couple hundred thousand, they’ll be dealing with nearly a million vehicles.

857,735 GM vehicles has been flagged for due to a faulty windshield washer fluid heater. The fault may cause other electrical features to get screwed up, even create nasty smells, or smoke. This should be classified to a problem that should have never existed if only automakers haven’t brought all of this electronic thingamajiggery into the equation. A toasted car surely isn’t worth the perk of getting heated wiper fluids.

View the list of affected vehicles after the cut courtesy of the National Highway Traffic after the cut.

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With a lot of people disposing of their cars to get newer and more fuel-efficient cars, it has now become a challenge for dealerships to dispose of trade-ins. With a flailing company such GM, it is important to make their pre-owned vehicles much more attractive for buyers on a budget.

Now, they’re offering used-vehicle warranties with a 12 month/12,000 mile bumper-to-bumper coverage starting next month (September 13). Now this is shaping up to be a great deal compared to the former 3-month/3,000 mile guarantee.

The warranty, as with other standard warranties, would only cover defective materials and workmanship and will not cover standard wear-and-tear components such as tires and brake pads. Body and metal components that are often subject to rusting are covered by 6-year/100,000 mile warranty.

The new policy will cover GMC, Chevrolet, Buick and Saturn brands. The more luxurious Cadillac, Hummer and Saab brands offer separate and longer warranties (six-year/100,000-mile bumper-to-bumper comprehensive coverage).