Tagged: GM

Saab filed for bankruptcy in Sweden on Monday after its former owner, General Motors, opposed a plan that could have bailed the company out. 

Saab developed severe cash flow problems almost immediately after GM sold it to a Dutch company, Spyker. Saab had to stop making cars this year while it sought new investors. 

The company found a buyer in China, but GM  said no to the deal.   

Selling the company triggered contract clauses that required GM to sign off on transfers of technology used in many Saab vehicles.

A GM spokesman said the company didn't want to lose control of its technology and allow Saab to become a competitor's shortcut into the thriving auto industry in China.

AutoPacific analyst Dave Sullivan says there's now little hope the quirky little brand can be saved.  

"[Saab] was a vehicle that could easily be seen on the road as a Saab," says Sullivan. "It could never be mistaken for anything else, and I think we’re losing an iconic design."

Saab sold only a few thousand cars in the U.S. last year.

United Auto Workers members are voting on whether to authorize a strike at General Motors’ Lansing Delta Township plant.   The vote centers on several workplace issues.   

The Delta Township plant produces the Chevrolet Traverse, GMC Acadia and Buick Enclave.  Tracy Handler is an analyst with IHS Global Insight.    She says if UAW members strike at the Lansing plant, the effect would not be immediate on GM.   

Former GM Chairman John Smale led the company from late 1992 until the end of 1995. He died today in Cincinnati at the age of 84. He was a board member of the automaker for more than two decades starting in  1982.

Smale also led Cincinnati based Procter & Gamble from 1981 to 1990.

The Canadian with German ancestry graduated from Miami University (Ohio) in 1949. He joined P&G in 1952, working for what was then called the toilet goods division. He rose through the company, becoming president in charge of all U.S. operations in 1974 and chief executive in 1981. He added the chairmanship in 1986.

During his tenure, Smale moved P&G businesses into new markets in huge developing countries such as China, setting the stage for P&G's rapid growth in Asia in recent years. P&G also acquired Richardson-Vicks, which broadened the P&G portfolio to include Pantene shampoo, Olay skin cream and Vicks cough medicines, which are major brands today. In a smaller acquisition, P&G obtained the CoverGirl makeup brand that also is still growing.

At GM, Smale help change the structure of the automaker's management and put a renewed focus on customers.

The heads of two of Detroit’s car companies say they’re concerned about the debt crisis in Europe. 

European consumers are pulling back from buying cars because of fears about the Euro and the economy.   

Fiat and Chrysler CEO Sergio Marchionne on Wednesday said he’s hopeful the new leadership in Italy will help turn things around in that country.  But he says car sales in Europe could worsen through next year.   

At the Detroit Economic Club Thursday, GM CEO Dan Akerson said the crisis could damage more than car sales.  But he’s hopeful the U.S. economy has become more resilient.

"Could the United States withstand a recession in Europe?" he asked rhetorically.  "I think it could. "

Ford CEO Alan Mulally earlier this month took the most optimistic view, saying he expects some global economic growth next year, despite sovereign debt concerns.

General Motors made $1.7 billion in the third quarter of this year.

That's down from $2 billion in the same period of 2010.

Financial turmoil in Europe contributed to GM's continued losses in Europe, although GM did cut those losses in half compared to last year, to $300 million.

GM is also not doing particularly well in South America.  The company broke even in that region.  GM officials say that's due to increased competition in the region and an aging lineup there.

General Motors officials say the company will invest $215 million in the GM Saginaw Metal Casting Operation to tool the plant to build components for future GM vehicles. 

The plant makes engine blocks and cylinder heads for GM vehicles, including the Buick LaCrosse and Chevy Malibu.

GM says the investment will create or maintain 275 jobs at the plant, which currently employs 630 people.

Later today, Nexteer is expected to announce a large capital investment in its Saginaw operations. 

Governor Rick Snyder will attend both events today.

President Obama will be in southeast Michigan today to promote a new  free trade agreement with South Korea.  President Obama is scheduled to tour General Motor’s assembly plant in Lake Orion.   South Korea’s president will accompany Obama. 

Congress this week approved a new free trade agreement with South Korea.  South Korea is the world’s 13th largest economy.  

The free trade pact is the largest such deal since the North American Free Trade Agreement with Canada and Mexico in the mid-90’s. 

Soaring rates of car ownership in China’s biggest cities are causing huge problems, from days-long traffic jams to choking smog. Even car companies say the trend is not sustainable. 

General Motors says one solution could be to reinvent the vehicle. Introducing the Miao, the Jiao, and the Shiao –  three cute, tiny cars with a serious mission.  

Car ownership in China has a dark side. Last year, a nine-day and a three-day construction-related traffic jam on the highway leading to Beijing were the most dramatic examples.