general motors

Auto/Economy
12:01 pm
Tue March 22, 2011

Wyoming approves plans to demolish huge former GM Stamping Plant

Former GM Stamping Plant in Wyoming, MI.
Lindsey Smith Michigan Radio

A 2-million-square-foot former General Motors stamping plant in the Grand Rapids suburb of Wyoming will be demolished this year. Monday night Wyoming’s city council approved plans to destroy the 75-year-old building and redevelop the site.

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Auto
9:01 am
Thu March 10, 2011

GM CFO to step down

General Motors' CFO will step down as of April 1st
Spacing Magazine Flickr

Updated:  5:59 p.m.

Outgoing GM CFO Chris Liddell says he only began wrestling with whether to leave GM in the past few weeks, and he and boss Dan Ackerson have been discussing the subject only for the past week.

Liddell says he has no announcement to make as to his next job, but he thinks it will not be a chief financial officer position.

GM CEO Dan Akerson says the transition, from Liddell to his successor, current GM Treasurer Dan Ammanns, should be "seamless."

Akerson says he's committed to remain at the helm of GM for the next five years.  Dan Ammanns also stresses his plan to stay for the long term.

Investors in GM's initial public offering in November had been assured that GM's leadership would stabilize. 

Sheldon Stone is with Amherst Partners, a restructuring consultant firm.

Stone says some investors will likely be concerned about Liddell's departure.

"He (Liddell) was part of that road show, that went out pitching the IPO," says Stone.  "He had his fingerprints all over it. 

Stone says GM needs change.  But this may be too much change.

GM has had four CEOs in the past year.  Several senior executives have left GM in the past year.  And the deck of senior management has been shuffled and re-shuffled several times.

Ken Elias is an analyst with the consultant firm Maryann Keller & Associates. 

He says Liddell, formerly CFO of Microsoft, was brought to GM by former CEO Ed Whitaker, with the understanding that Liddell would be groomed as Whitaker's successor.

But months after Liddell began his new job at GM, Whitaker stepped down as CEO.  GM's Board chose Board member Dan Akerson to lead the company. 

Elias says that could account for Liddell's decision, after the IPO was completed, to leave GM.

 

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General Motors says its Chief Financial Officer will step down as of April 1st. Chris Liddell will be replaced by Treasurer Dan Ammann. The Associated Press reports:

Spokeswoman Noreen Pratscher said Thursday that Liddell accomplished his goals of finishing an initial public stock offering and returning the company to sound financial footing. She says Liddell did not say anything about his plans for the future.

Under Liddell, GM posted four straight profitable quarters.

Spokeswoman Noreen Pratscher said Liddell accomplished his goals of finishing an initial public stock offering and returning the company to sound financial footing. She says Liddell did not say anything about his plans for the future.

The 52-year-old Liddell joined GM in January of 2010, about six months after it emerged from bankruptcy protection.

Chairman and Chief Executive Dan Akerson said Liddell was a major contributor to GM during a pivotal time in the company's history.

"He guided the company's IPO process and established a good financial foundation for the future," Akerson said in a statement.

GM reported net income of $4.7 billion last year, fueled by strong sales in China and the U.S. as the global auto market began to recover. It earned $2.89 per share on revenue of $135.6 billion.

It was the company's best performance since earning $6 billion in 1999 during the height of the pickup truck and sport utility vehicle sales boom.

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Auto
5:52 pm
Tue March 1, 2011

Snowstorms didn't dampen February sales - especially for GM

General Motors' auto sales rose by 46 percent in February
Spacing Magazine Flickr

Snowstorms in February didn’t seem to dampen car sales.  Sales were up 32-percent at Nissan, 42-percent at Toyota, and 46-percent at GM.

GM’s gain is for several reasons. Last February GM’s sales were weak, so this February looks much better in comparison. The company increased incentives in February. And it’s easier for GM customers to get financing now that GM has its own finance arm, GM Financial.

Don Johnson is head of GM’s U.S. sales.

"With their entry into the market, our penetration of the sub-prime business is above the industry average," says Johnson.  "We’ve also got GM Financial growing their prime lease business."

February sales were up 13-percent at Chrysler and 14-percent at Ford.

Commentary
12:18 pm
Fri February 25, 2011

General Motors Wins a Star

Two years ago, when President Obama decided to spend billions to prop up General Motors, and then to guide it  through a cushioned, “soft landing” bankruptcy, there were a lot of doubters. Many thought nature should have been allowed to take its course, and that the once-mighty General should have been allowed to die.

At the time, a commentator on NBC News said “As the GM bailout goes, so goes the Obama presidency.”

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Auto/Economy
9:01 am
Thu February 24, 2011

GM has a very good year

GM's Headquarters in downtown Detroit. The newly formed company made $4.7 billion in profits last year.
user paul (dex) Flickr

General Motors says it earned $510 million in the fourth quarter and $4.7 billion last year as it continued an impressive comeback from bankruptcy.

It was the company's first profitable year since 2004 and GM's best performance since making $6 billion in 1999 during the pickup truck and SUV boom.

GM says fourth-quarter net income was fueled by strong sales in China and the U.S. as the global auto market began to recover. GM says net income per share was 31 cents, including $400 million in charges mainly for preferred stock dividends and for buying preferred stock from the U.S. government.

The quarterly profit was less than the two previous quarters. GM says expenses were higher because it launched two new vehicles. Revenue for the quarter was $36.9 billion.

Auto/Economy
2:14 pm
Wed February 23, 2011

GM expected to announce $5 billion profit for 2010

A view from the General Motors headquaters in Detroit.
user santoshkrishnan creative commons

General Motors is expected to formally announce its first ‘full-year profit’ since 2004 on Thursday. It was just two years ago General Motors had to seek bankruptcy protection.    Now, the automaker is expected to announce a 5 billion dollar profit for 2010.

Aaron Bragman is an automotive analyst with IHS Global Insight.  He gives a big part of the credit to the federal government for helping GM through bankruptcy. 

“I don’t think we’d be in the place where we’re at right now if the government had not intervened and actually funded their bankruptcy.  We’d be in a very different place.”

 Bragman says 2011 might be another good year for GM, because of rising gasoline prices. 

 “Chevy is bringing several small vehicles to market.  The new Spark is on the horizon.  The new (Sonic) is coming this year.   So we’re actually seeing a lot of these small cars coming…and now we’re seeing a market force that may actually drive people to go an buy them.”

Bragman says high gasoline prices may hurt Chrysler, because it doesn’t have as many high- mileage vehicles to offer car buyers.

Auto
6:52 am
Fri February 11, 2011

GM: Workers to get bonus checks

General Motors says most of its 26,000 white-collar workers will get bonus checks
Spacing Magazine Flickr

General Motors says most of its 26,000 white-collar workers will get bonus checks. The automaker says the bonuses will be between 4 and 16 percent of their base salaries. The Associated Press reports:

The company says in a statement Thursday that bonuses will be based on the performance of the worker and the company. GM made $4.2 billion in the first three quarters of last year and is expected to post a fourth-quarter profit shortly. The bonuses come just 19 months after GM needed a $49.5 billion government bailout to make it through bankruptcy protection.

The company says that more than 96 percent of the salaried workers will get bonuses of 4 to 16 percent of their base pay. Fewer than 1 percent will get 50 percent or more.

Auto/Economy
2:53 pm
Wed February 9, 2011

Big checks coming to GM workers

GM's Headquarters in downtown Detroit. GM's Akerson says he "wants compensation for hourly workers to more closely mirror that of white-collar employees and executives." - Wall Street Journal
Rich Evenhouse creative commons

Profit-sharing checks to GM's 45,000 workers are expected to break a record. The news comes as GM is tallying its profit numbers for 2010. The company will release the amount of the checks soon.

The Wall Street Journal reports:

General Motors Co. is planning to pay its hourly workers in the U.S. at least $3,000 each in profit-sharing payouts, the largest amount ever, after the company's return to profitability in 2010, people familiar with the matter said...The auto maker is trying to tow the line between fiscal prudence and expectations that it will share recent gains with workers as the company heads into labor negotiations with the United Auto Workers.

Other U.S. automakers are also sharing the wealth.

Ford Motor Company paid hourly workers more than $5,000, "more than the company was required to pay under the profit-sharing formula in its contract with the UAW," according to the Wall Street Journal.

And Chrysler gave their workers $750 despite the company's losses in 2010.

The Detroit Free Press reports that the checks are expected to be handed out in the months ahead, and the size of the checks could help the automaker in its negotiation with the United Auto Workers union. From the Freep:

The Detroit Three, which will negotiate new labor contracts with the UAW this year, may be giving higher-than-required payments to autoworkers as part of a strategy to convince the rank and file to keep labor costs flat in return for bigger profit sharing in the future, labor experts previously told the Free Press.

Auto/Economy
6:14 pm
Mon January 31, 2011

General Motors gets back into Superbowl advertising

General Motors is jumping back into advertising during the Superbowl.  GM will likely spend $15,000,000  on ads focusing on its Chevrolet brand.

Many car companies like Ford Motor Company are using social media and Internet-based advertising more and more.  But analyst Ed Kim of AutoPacific says Superbowl ads still generate a lot more buzz.

"Any automaker advertising during the Superbowl is certainly going to have a whole lot of exposure to a whole lot of people all across America," says Kim.

Kim says GM's current marketing czar, Joel Ewanick, used to work for Hyundai, so he has experience using the Superbowl to improve a car company's image and sales.   At the peak of the recession, Hyundai began a highly successful campaign which allowed people to return Hyundai cars if they lost their jobs.  Kim says Hyundai used the campaign to good effect in its Superbowl ads.

GM did not advertise during the Superbowl last year and the year before.  The automaker does plan a social media campaign in conjunction with the Superbowl.  GM will release its Superbowl ads early to its Facebook fans.

Kim says that will generate some extra buzz for GM.

The ads will focus on the Chevrolet brand.   Chevy generates about 70% of GM's sales in the U.S.

Auto/Economy
2:24 pm
Thu January 27, 2011

General Motors' financial health improves

General Motors is saying thanks but no thanks to more federal loans.  The Detroit automaker is withdrawing its application for more than 14-billion dollars in low-cost loans from the Department of Energy.   

Many car companies including Ford have received DOE loans, which are intended to help auto companies revamp factories to build more fuel-efficient cars and trucks.  GM applied for loans through the program shortly after emerging from bankruptcy.  But the automaker says its financial situation has improved since then. 

Gerry Meyers is a professor at the University of Michigan Ross School of Business. He's also a former Chairman of American Motors Corporation.  He says taking the loans would have given GM more debt.   And the automaker told prospective IPO investors late last year that it would avoid going deeply into debt.

It’s quite clear that they’re trying to clean up that balance sheet and also get the government out of the business, so it’s just another step in that direction and I think it’s wise.

Meyers says the next step to GM’s recovery is to stop the revolving door at the top executive level.  The company has had four CEOs in two years.   

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Auto/Economy
7:22 am
Thu January 27, 2011

Treasury Department hopes to sell off remaining GM stock within 2 years

U.S. Treasury Department, Washington, D.C.
Wally G Flickr

The head of the government's bailout program says the U.S. Treasury Department hopes to sell its remaining shares of General Motors stock over the next two years.

The Associated Press reports:

Timothy Massad, the senior Treasury official managing the government bailout fund, told a congressional hearing that there is now a path forward for Treasury to sell its remaining shares in GM over the next two years if market conditions permit. The Treasury Department trimmed its stake in GM to 26.5 percent of the company, down from 61 percent, when it sold $23.1 billion of GM stock at an initial public offering in November.

Auto/Economy
3:26 pm
Tue January 11, 2011

GM plans to advertise during Super Bowl, 2012 Olympics

General Motors is stepping up its advertising budget for major sporting events.   GM says it has reached a deal with NBC to be the exclusive domestic automotive advertiser during the 2012 London Olympics. 


General Motors invested heavily in Olympic advertising in the past, but that spending dipped as the automaker has struggled in recent years. That reduced spending also included the Super Bowl. 

AUTO
6:43 am
Tue January 4, 2011

GM CEO to meet with Michigan lawmakers

General Motors' Headquarters, Detroit, MI
Sarah Hulett Michigan Radio

Dan Akerson, Chairman and CEO of General Motors, is planning to meet Friday with members of Michigan's congressional delegation.  That's according to an official familiar with the meeting.  The official, who spoke on the condition of anonymity, told The Associated Press that, "it will give Akerson a chance to meet some Michigan lawmakers for the first time".

Akerson was named GM's CEO in September, 2010. GM has not yet commented on the meeting.

As the AP notes:

Michigan's 15 House members and two senators were key allies for GM as it underwent a government-led bankruptcy in 2009. The Detroit company had its initial public offering last November, reducing the government's ownership share to 33.3 percent.

Auto/Economy
10:03 am
Tue December 14, 2010

GM offering buyouts

A view from GM's Renaissance Center
Santosh Krishnan

GM is offering some of its employees a buyout this Christmas. The buyout offer will target at 8 assembly plants in Michigan. 

The Associated Press reports:

General Motors is offering buyouts to several thousand skilled trades workers at 14 plants around the U.S. 

The automaker will pay eligible workers $60,000 to retire with full benefits. Younger workers will have the option to take the $60,000 in exchange for giving up retiree health care and other benefits.   GM spokesman Chris Lee didn't know how many workers will get the offers.

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Auto Industry
9:13 am
Fri December 10, 2010

GM CEO says automaker has been humbled

General Motors Headquarters, Detroit, MI
Sarah Hulett Michigan Radio

Dan Akerson, General Motors' CEO, told the Economic Club of Washington D.C. this morning that his company was humbled by its "near-death experience" during its 2009 bankruptcy.

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Auto Industry Jobs
11:16 am
Tue November 30, 2010

GM to hire 1,000 in MI

General Motors has just announced that it will hire 1,000 engineers to work on battery technology in Michigan. The jobs include helping to develop batteries for hybrid, electric and hydrogen fuel cell vehicles. Most of the jobs will be at a technical center in Warren.

The Detroit Free Press reports the jobs come as GM:

…prepares to deliver the first Chevrolet Volt extended-range electric cars next month… GM plans to build 10,000 Volts by the end of 2011 and at least 45,000 in 2012. Initially, the Volt will sell in California, New York City, Washington, D.C., and Austin, Texas. Next spring, those markets will expand to include Michigan, New Jersey, Connecticut and the rest of New York and Texas. Within a year and a half, GM plans to sell the Volt nationwide.

GM invests more for Chevy Volt
4:11 pm
Wed November 24, 2010

UAW celebrates new GM investment in Flint and Bay City

General Motors formally announced today that it is investing more than 160 million dollars in plants in Flint, Bay City and in Defiance, Ohio.


 The three plants produce components for the Chevy Volt, Cruze and a third unnamed Chevrolet small car.


 Bill Jordan says GM’s announcement is an early "Christmas present.”   Jordan is the president of United Auto Workers local 599.    He says GM’s investment shows workers are doing the job right. 

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GM IPO
11:32 am
Fri November 19, 2010

Just what does GM's IPO mean for Michigan

General Motors

General Motors (GM) stock returned to trading on Wall Street yesterday for the first time since the company collapsed, declared bankruptcy, and was rescued by an infusion of fifty billion taxpayer dollars.

While Michigan has been focusing on diversifying its economy to make up for the loss of jobs in the auto industry, GM's return to public trading suggests that the auto industry in Michigan will continue to be a major economic player in the region.

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General Motors
8:39 am
Tue November 16, 2010

GM boosts stock price

General Motors says it’s raising the price range for its initial public stock offering.

The stock will sell for $32 to $33 per share.

That price range is about 14% higher than was previously expected.

GM didn’t give a reason for the increase but people who have been briefed on the sale say it’s because of high demand from investors.

The IPO is expected on Thursday.  The Detroit Free Press reports, "the U.S. Treasury is selling 365 million shares, which will reduce its stake in GM from 60.8% to about 40%."

General Motors
5:12 pm
Mon November 15, 2010

Background on the GM IPO story

The old GM Headquarters in Detroit.
Historic American Buildings Survey

General Motors (GM) will be in the news a lot this week, so if you sat out the GM story up until this point, here's a quick summary to get you caught up.

Today's General Motors is not your father's General Motors. The old GM went bankrupt. The company couldn't pay its bills (they had some big ones).

But instead of letting the whole company collapse, a court stepped in to reorganize the auto giant (under chapter 11 bankruptcy).

The court split the old GM in two.

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