General Motors

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GM will have less cash on its books, after making a deal with an activist investor unhappy with the company's stock performance. 

GM agreed to buy back $5 billion worth of its stock, to appease investors led by Harry Wilson. Wilson was a member of the Auto Task Force in 2009 which took GM through bankruptcy. 

He'd threatened to run for GM's board as a hostile candidate, to try to force GM to make an $8 billion stock buyback. 

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Freezing temperatures and drifts of snow likely took a small bite out of U.S. auto sales last month, but most automakers are still reporting gains thanks to the strong economy.

General Motors' sales rose 4.2% over last February, while Chrysler's sales were up 5.6%. Nissan's sales were up 2.7%. However, those gains were smaller than analysts had predicted.

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General Motors reports earning $2.8 billion last year, despite issuing a record number of recalls.

GM recalled more than 26 million vehicles in the U.S., and 30 million globally.

GM CEO Mary Barra says the recall crisis was "galvanizing."

"We have built what I believe is the best safety organization in the industry, and we are instilling a zero-defect mindset across the company," she told analysts and investors during a conference call on the fiscal year's financial results.

Reporters getting a closer look at the Chevy Bolt concept.
Mark Brush / Michigan Radio

This week, Jack and Emily discuss Detroit schools’ new emergency manager, Dave Agema’s latest controversy and the North American International Auto Show.


Paige Pfleger / Michigan Radio

Click on the image above to see some of the concept cars on display at this year's auto show.

- Paige Pfleger, Michigan Radio Newsroom

GM hopes the Chevy Bolt will make long range electric cars affordable.
Mark Brush / Michigan Radio

General Motors officials introduced a concept car, the Chevy Bolt, today at the North American International Auto Show. The car company claims the all-electric car has a range of up to 200 miles on one charge and will be affordable to the typical consumer. The company puts the price of the Bolt at $30,000 including a federal tax credit.

If it’s released, the Bolt would compete with the electric car-maker Tesla. Tesla’s Model S has a range of 265 miles on one charge, but the car’s price tag is out of reach for many consumers with a base price of nearly $70,000.

General Motors CEO Mary Barra.
Dave Pinter / flickr

Two weeks after Mary Barra took charge of General Motors, she faced a sudden challenge that could have tested even a seasoned CEO.

The automaker was forced to admit it had delayed a recall of 2.6 million Cobalts and other small cars for 10 years, leading to dozens of deaths that might not have happened had the recall been timely.

Soon, Barra was called before several congressional committees, where she endured sometimes merciless questioning about the scandal. 

GM had an event-filled year. The company announced more shifts at assembly plants, like at this one - the Wentzville Assembly plant in Missouri. It also dealt with the fallout from the ignition switch recall.
GM

For the world's automakers 2014 was full of good news and some very, very bad news.

We take a look back at the year with Michele Krebs, director of Automotive Relations with the Auto Trader Group, and Tracy Samilton, Michigan Radio's auto reporter.

Listen to our conversation with them below.

Cadillac logo and grille
Flickr user Eric E Johnson / Flickr

Cadillac is moving its headquarters, and over 100 employees, to New York City. Detroit News Business Columnist Daniel Howes tells us the move shows that Cadillac is looking to gain more customers of money and influence on the East coast.

Cadillac’s vehicles will still be developed and engineered here in the Midwest.

Listen to our conversation with Howes below.


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Emails just released in a court case reveal General Motors ordered a half-million replacement ignition switches, nearly two months before reporting the defective switch problem to the government. The defect has been identified as a factor in 32 deaths.

Jeff Bennett broke this story for the Wall Street Journal.


Today on Stateside:

  •         Emails from an order for 500,000 ignition switches by General Motors from December 18th have been released. Jeff Bennett broke the story for the Wall Street Journal and talks to us about the importance of these emails in a pending legal case.
  •           In Ann Arbor, kids caught spray-painting serve their community service time by cleaning up graffiti under the Juvenile Graffiti Removal Project. Listen to Sgt. Thomas Hickey of the Ann Arbor Police Department discuss his creative idea.
  •          Called “the greatest American player of all time” by Red Wings head coach Mike Babcock, Chris Chelios has certainly left his mark on the city of Detroit and the Red Wings franchise. Listen to him discuss his new memoir, Made in America.
  •          While high-profile chemical spills and bacterial blooms have raised concerns about the safety of drinking water in the United States, it’s not the only pollutant reaching the water supply. Listen to chemist Andrea Sella report for the BBC on how the medicines we take are ending up in our environment.
  •          Rebecca Klaper, professor at the University of Wisconsin-Milwaukee’s School of Freshwater Sciences has been studying the presence of pharmaceuticals and personal care products (PPCPs) within the Great Lakes. Listen to Dr. Klaper discuss the presence of PPCPs in the Great Lakes.
  •           East Jordan Iron Works has a 131-year history in the state of Michigan. You can’t walk across a street in Michigan without stepping on a manhole cover branded with their name. Listen to VP Thomas Teske discuss the history of the company.
  •          In the fight against blight in Flint, Gordon Young had a goal of raising $10,000 to tear down a single decaying home on Parkbelt Drive in Flint. After contributions from over 150 donors, Young has exceeded his goal by more than $1,000.
Steve Carmody / Michigan Radio

Today’s announcement that General Motors plans to spend $300 million in Michigan is good news not only for GM employees, but also for auto parts suppliers.

GM had previously announced the automaker's plans to invest $240 million in its Warren transmission plant. The plant will make the electric drive unit for the next-generation Chevy Volt. 

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General Motors made nearly $1.5 billion dollars in the third quarter. That was better than many analysts expected. 

General Motors already put most of the costs of its many recalls on the books in the first and second quarters.  So the third quarter looks much healthier by comparison. 

Strong profits in North America boosted the automaker's performance, driven by increases in truck and large SUV sales. 

VW edging closer to its desired no. 1 spot.
user PMillera4 / Flickr

They're rounding the 7.5 furlong mark and the standings are:

  1. Toyota
  2. Volkswagen
  3. General Motors

The Associated Press breaks it down for us:

Volkswagen edged out General Motors for second place in the global auto sales race during the first three quarters of the year, but Toyota was expected to keep its lead to stay in first place.

GM said Wednesday that is sold 7.37 million cars and trucks worldwide from January through September. But VW said it sold 7.4 million to nudge GM out of second place.

Toyota won't release its numbers for the first three quarters until late October. But it was in first place in the first half with sales of almost 5.1 million, and it expects the full-year figure to be 10.1 million.

Toyota finished first last year with a record 9.98 million sales. General Motors Co. finished second and VW third.

jordanmrcai / Creative Commons

Emily Fox and Jack Lessenberry sat down to discuss what's going on this week in Michigan politics. They covered the high price of water in Flint and Detroit, GM’s decision to move its Cadillac headquarters to New York, and the debates for Michigan governor and the U.S. Senate race.


DETROIT (AP) - General Motors is recalling 221,558 Cadillac XTS and Chevrolet Impala sedans because the brake pads can stay partially engaged even when they're not needed, increasing the risk of a fire.

The recall involves Cadillacs from the 2013-2015 model years and Impalas from the 2014 and 2015 model years. There are 205,309 vehicles affected in the U.S.; the rest of the vehicles are in Canada and elsewhere.

Steve Carmody / Michigan Radio

 

When General Motors appointed Kenneth Feinberg as its so-called "compensation czar," it was clear the automaker hoped to have Feinberg determine damages to victims of the ignition-switch debacle, pay, and move on.

But as Detroit News business columnist Daniel Howes writes today, things are not working out that way:

Steve Carmody / Michigan Radio

General Motors is being accused of not caring about the working conditions in its plants in Columbia and India.

About two dozen protesters plan to hound GM CEO Mary Barra at events tied to this week’s auto technology conference in Detroit.

Paige Shell-Spurling is organizing the protests.  She says GM is ignoring problems with unsafe factories that have left dozens of workers seriously injured.

General Motors

Today brought the fourth appearance for General Motors and CEO Mary Barra before angry members of Congress.

This time a Senate subcommittee took a deeper dive into the ignition switch recalls and didn't like what it saw in GM's legal department.

Michigan Radio's auto reporter Tracy Samilton followed the event.

According to Samilton, GM's chief counsel Michael Millikin was in the "uncomfortable Senate spotlight" today.

When senators asked why Millikin still kept his job, Barra said she "respectfully" disagreed with them, and she defended Millikin as a man of "incredibly high integrity."

She said Millikin "had a system in place." Unfortunately, in this instance "it wasn't brought to his attention."

An image from the consumer alert issued for the GM ignition switch recall.
NHTSA

DETROIT - General Motors says it has replaced faulty ignition switches on just under 20 percent of 2.6 million small cars that are being recalled.

The company has repaired just over 491,000 cars that are covered by the recall announced in February.

Switch maker Delphi Automotive says it has produced over 1 million parts and expects to have made 2 million by the end of August. GM says it expects all parts to be made by late October.

Delphi CEO Rodney O'Neal tells lawmakers his company has added three lines to speed up production.

Some car owners have complained it's taking too long for GM to finish repairs.

The switches can slip into the accessory position and unexpectedly shut off engines. That has caused crashes that killed at least 13 people.

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