General Motors

Steve Carmody/Michigan Radio

General Motors is heading back to its roots.

The automaker announced today that it will sponsor Flint’s “Back to the Bricks” car show for the next five years. The show features hundreds of ‘classic’ cars and trucks.

“This is an event that is more than just a car cruise and a car show,” says GM spokesman Tom Wickham, “It brings people into a community…provides an economic boost to a community and we need an economic boost.”

About a half million people attended Back to the Bricks in Flint this year.

Chevrolet

Today, General Motors announced plans to largely withdraw its Chevrolet brand from Europe beginning in 2016.

The automaker says the decision was largely due to a challenging business model and the difficult economic situation in Europe.

Meanwhile, the Ford Mustang is celebrating its 50th birthday with a new design — and plans to go global.

Russell Padmore, business reporter for the BBC, joins us from London to talk about the latest auto news.

Listen to full interview above. 

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Auto companies report November's auto sales next week.

The news should be good, especially for Ford, Chrysler and Detroit.

Michelle Krebs is an analyst with Edmunds.com. She says the Detroit Three have had a great year so far, with car sales leading the way.   

“But they also are the biggest seller of trucks,” says Krebs, “People are buying big trucks again like they haven't in a long time.

Krebs says GM's did better this year than she expected.  She adds that’s especially true since Consumer Reports called the new Impala the "best sedan in the U.S."

Half a century ago, America suffered one of the most traumatic events in our history: The assassination of President Kennedy. But while it is important to remember that, it might also be good to consider that there is a bunch of good economic news today. Good news, especially for Michigan.

Yesterday, University of Michigan economists presented their annual November forecast. They saw good things ahead, with the national economy growing almost twice as fast over the next two years as now.

Two experts from the Research Seminar in Quantitative Economics predicted five million new jobs over the next two years. Unemployment, they predict, will fall from just over seven to about six percent.

Meanwhile, they predict the automakers will sell half a million more units next year than this, more still in 2015, and the housing market will also grow.  Inflation will stay low and oil prices will remain steady. This is all very good news, if true.

Steve Carmody/Michigan Radio

The announcement this week that an Alabama company plans to build a pipe factory in Flint could help spur further investment in a former General Motors site there.

The 235 acre Buick City site is being marketed by the Racer Trust. The trust was set up to sell off abandoned General Motors properties. American Cast Iron Pipe is the first company to invest in Buick City.

Elliot Laws is with the Racer Trust. He says they’ll be blasting news of American’s plans to build in Flint to other potential investors…

General Motors wants tax incentives to help offset an investment in its Detroit assembly plant.

But some Detroiters say the bankrupt city shouldn’t be handing out subsidies to profitable carmakers.

A small group of protesters circled in front of GM headquarters in downtown Detroit Monday, demanding that the corporation “pay its taxes.”

The Reverend Charles Williams II, who led the protest, said it's not right for GM to look for tax abatements while the city is in federal bankruptcy court, and pensioners face possible cuts.

August was a good month for U.S. automakers.

Nearly all automakers are reporting double-digit sales gains as August shapes up to be another strong month for the industry.

GM

GM announced today that the price of a Chevy Volt will drop by $5,000:

The 2014 model will start at $34,995...

If consumers include federal tax credits ranging from $0-$7,500 (depending on individual tax liability), pricing could start at $27,495.

thecarconnection.com

Analysts are expecting a robust month for auto sales.

Jesse Toprak is an analyst with TrueCar.com.  He says July sales were good across all categories.

“But two extreme segments stand out, we see very high demand for small cars and small SUVS, and a very healthy demand for large pickup trucks,” says Toprak.

Toprak says the increase in pickup sales is being driven by small business owners, and an uptick in home renovations.

General Motors

General Motors is number two in global auto sales so far this year, just behind Toyota, and just in front of Volkswagon.

So why didn't GM make more money than its Dearborn rival, Ford Motor Company, in the second quarter?

Both companies made $1.2 billion, but Ford made that money based on a lower volume of sales.

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Governor cuts trip short

Governor Rick Snyder will return early from his trip to Israel today in order to lobby for Medicaid expansion. Snyder will encourage fellow Republicans to pass the legislation. “Today is the last day for lawmakers to pass Medicaid expansion before their two-month summer break,” reports Jake Neher.

Teachers protest education legislation

Michigan teachers rallied in Lansing yesterday to protest legislation that would allow state officials to close struggling school districts.  According to the Associated Press, “the legislation lets the state superintendent and treasurer dissolve a district with 300 to 2,400 students if certain criteria are met.”

General Motors receives high ratings

For the first time ever, General Motors topped the Initial Quality Survey released by automotive tracking firm J.D. Power.  Michigan Radio’s Tracy Samilton reports that GM received a better score than any other corporation in the study.  She says "people are reporting very few mechanical problems.  Most automakers have drummed out serious engine and transmission defects from their cars."

This year's vehicle Initial Quality Survey by the business tracking firm J.D Power and Associates is a bit of a stunner.

The survey asks people how many problems they had with their car in the first 90 days of ownership.

The top auto company was GM. 

The company's GMC brand was second only to Porsche.  That's the first time GMC has ranked anywhere near that high in the history of the survey.   Chevy was fifth, also a dramatic rise in the rankings.

GM Media

Late last year, the U.S. Department of Treasury announced it would sell all its remaining stock in General Motors in 12 to 15 months.

Today, the Treasury is announcing a plan for another big sell-off.

Officials say, "subject to market conditions," they intend to sell 30 million additional shares of GM common stock "in conjunction with GM’s inclusion to the S&P 500 index effective as of the close of trading on June 6, 2013."

If you live in Michigan there’s a good chance you’ll head up north this summer, or maybe west to bask in the sun on Lake Michigan, but if you’re still not sure where to escape this summer, we have some fun tips on hidden vacation gems you are sure to enjoy.

And, Rick Pluta gave us an update on the Mackinac Policy Conference.

And, Daniel Howes shared his insights on how the financial and investing world views the Detroit auto companies.

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It’s Thursday, which means it’s time for our weekly conversation with Daniel Howes, the Business Columnist at the Detroit News.

This week, he focused on the business community in Detroit, where companies like General Motors are trying to give back through programs like the GM Student Corps. From Howe's column:

By itself, the pilot program unveiled in the Wintergarden of GM’s Renaissance Center, isn’t front-page news in a city bursting with the good, the bad and the financially ugly on a weekly basis. What GM Student Corps signifies, however, is another example of a key player in the business community seeing a communal need and moving to fill it, quickly.

He joined us today to discuss the business in Detroit as well as the health of the auto industry.

Listen to the full interview above.

Car companies closed a lot of North American factories in the past ten years as the auto industry restructured.

That has made Jim Tetreault's job even more of an art and a science.

Tetreault is Ford's head of North American manufacturing.  He's responsible for maximizing the number of vehicles that any of the Detroit automaker's remaining plants can produce, while minimizing the downtime at each facility.

Steve Carmody/Michigan Radio

Lansing Mayor Virg Bernero says he wants four more years in office. He formally announced his campaign today. 

“I’m telling you folks … Lansing is on the verge,” the partisan crowd groaned, and then laughed, as Virg Bernero joked at his campaign kickoff.

Carlos Lowry / Flickr

  If you hear the word Europe, you might find yourself thinking of great places to travel, a rich history, or family roots.

If you're an auto executive and you hear “Europe,” you’ll likely sigh and take a couple of aspirin for your headache.

That's because the Detroit automakers stand to lose $4 billion in Europe this year. And with a collapse in auto sales across the pond, trying to muscle through the kinds of changes that saved the industry here in North America is a totally different challenge in Europe.

Michelle Krebs of Edmunds.com and Michigan Radio’s auto reporter Tracy Samilton discuss the bleak picture in Europe for Detroit automakers.

Listen to the full interview above.

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VAN BUREN TOWNSHIP, Mich. (AP) - The Yankee Air Museum is kicking off a $6 million campaign to make its home at a former facility that built B-24 bombers during World War II.

Museum officials announced this week an effort to purchase and renovate part of the former Willow Run powertrain plant. The museum is housed at Willow Run Airport, near Ypsilanti in Wayne County's Van Buren Township.

Its original headquarters was destroyed by fire in 2004.

Dennis Norton, the founder and president of the Yankee Air Museum, has presented plans to Ypsilanti Township officials. The museum says it has until Aug. 1 to secure funding, and would buy the site from the Revitalizing Auto Communities Environmental Response Trust.

Ford Motor Co. built the plant for B-24 production. It later was taken over by General Motors.

Steve Carmody/Michigan Radio

The Lansing City Council has approved a 12 year-four million dollar tax abatement for General Motors.

GM is planning a $38 million expansion to its Lansing Grand River assembly plant.  The expansion is expected to add 150 jobs to the plant.

GM currently makes its Cadillac ATS and CTS at the Lansing plant.   The automaker also plans to start producing its next generation Camaro at the Lansing plant.

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