GM auto news

REPORT: Bob Lutz "crapped all over [GM's] advertising," went on holiday

It's no mystery that Bob Lutz wasn't particularly pleased with Buick's recent "Photo Shoot" advert, and according to Ad Age, the tri-shield's spot wasn't the only campaign to incur Maximum Bob's maximum wrath.

On July 14, General Motor's new Vice Chairman sat down with the automaker's branding teams, and according to one source, "crapped all over the advertising," then left on a Caribbean vacation.

Specifically, he took issue with the aforementioned Buick commercial, as well as the Kate Walsh (of Grey's Anatomy fame) Cadillac ads, saying the spots were "too dark" and that Chevrolet's new campaign - which has yet to run - is "too lifestyle-focused."

Speaking with various insiders at GM, its advertising agencies and the creator of the Buick spot, Ad Age reports that Lutz will be spearheading in-depth reviews of current and upcoming campaigns to best represent the General's post-bankruptcy rebirth, and taking an old-school approach that highlights the products and features in its line-up.

Lutz said in a webcast before the meeting, "I think you will very quickly see a drastic change in the tone and content of our advertising. And if you don't, it will mean that I have failed."

Cowger and Clarke retire, GM announces more exec appointments and new board members

With the new General Motors out of bankruptcy, the next big step for the 101-year-old automaker is to restructure its management to reflect the company's new direction, as well as its smaller size. To that end, GM has announced a new, smaller lead executive team comprising of nine total members, including CEO Fritz Henderson. Missing from the team are manufacturing head Gary Cowger and GM North America President Troy Clarke, who are among six GM execs who elected to retire. Among the notable lead execs are marketing and communications Vice Chairman Bob Lutz, Product Development head Tom Stephens and U.S. Sales VP Mark LeNeve.

Also announced were the last five members to be elected to the GM board. In all, the U.S. government selected 10 board members, while the Canadian government and United Auto Workers each selected one. Fritz Henderson is the 13th board member. Among the new board members is TPS founder David Bonderman, who just so happens to be one of the richest people on earth. Bonderman reportedly spend $7 million on his 60th birthday party, which included performances by John Mellencamp and the Rolling Stones. To his credit, TPS is an equity firm that has so far weathered the shaky financial markets. Hit the jump to look over the two GM press releases.

Continue reading Cowger and Clarke retire, GM announces more exec appointments and new board members

GM: No Chevy Volt pricing until mid to late 2010, could sell first cars on eBay

During a live webchat the other day, Jon Lauckner, General Motors VP for Global Program Management, said that pricing for the Chevrolet Volt would not be finalized until mid to late 2010. Although cars are generally developed to a target price point, Lauckner responded to a pricing query saying, "We typically do not lock in on pricing until about 3-6 months prior to start of production. The reason is primarily so we have an opportunity to take a look at the market, competitors and other factors. So stay tuned."

As for alternative versions of the Voltec, such as a lower cost non-plug-in version, Lauckner ruled that out as defeating the whole point of the Volt. Without the benefits of running on grid power, the Volt's architecture would likely be less efficient than a current parallel hybrid because of the losses in constantly going from mechanical to electrical and back to mechanical energy.

What does seem likely to eventually change is the configuration of the range extender. Lauckner ruled out the possibility of using a Wankel rotary - an engine design that offers high power density compared to a piston engine but isn't very fuel efficient. One alternative that was highlighted as an alternative that does have promise for increased efficiency was HCCI. In any case, none of these alternatives are likely to appear before the second-gen Volt at the earliest. The first-gen Volt will be e85 capable at launch just as announced when the original concept appeared. More after the jump.

Gallery: 2011 Chevy Volt

Continue reading GM: No Chevy Volt pricing until mid to late 2010, could sell first cars on eBay

GM and Army open up new test facility on Yuma Proving Ground

General Motors and the U.S. Army have officially cut the ribbon opening the automaker's all-new Desert Proving Ground this week. Located just outside Yuma, Arizona, the testing facility is built on 2400 acres of leased government property. In addition to a 3.5-mile circuit track (three lanes) and a 1.4-mile straight track (two-to-three lanes), the proving ground includes a 1,000' x 1,000' dynamics pad, interior noise road, and a garage with 40 hoists. And, that is just a partial list of the niceties at this state-of-the-art complex.

According to GM's Ken Morris, executive director, Vehicle Integration, Proving Grounds and Performance Division:

"This new facility meets several of our important product development needs... We have a longer hot weather testing cycle, we have great partners with the Army and the city of Yuma, and we have a facility that will meet our needs in the years to come,"

No need to mention that the isolation - and restrictions - associated with an active military base that also serves to keep prying eyes and spy photographers from capturing the company's future models, right?. Check out the details in the press release after the jump.

Gallery: GM Yuma Proving Ground

Continue reading GM and Army open up new test facility on Yuma Proving Ground

Autoblog Podcast #137

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Episode #137 of the Autoblog Podcast has arrived. Chris, Sam, and Dan are back, chewing the fat over the Acura ZDX, Death Valley spy shots of the Jaguar XJ, what will underpin Cadillac's new flagship model, Electric Lexus pricing, the ongoing Volkswagen/Porsche soap opera, and Honda's swearing off of V8s and RWD. Wrap it all up nice and tidy with some of your questions, and 82 minutes later, you're done. We apologize for the poor audio quality on Dan's track for some of this week's podcast. It only lasts through the end of the Autoblog Garage segment, and then we're back to full-fidelity. Getting a show out to you quickly was important to us, so we went with what we had. 23 minutes in is the magic point where the audio clears up. Let us know what you think, drop us a line at Podcast at Autoblog dot com. Thanks to all who have taken the time to fill out our survey; hit the jump to listen or subscribe to the Autoblog Podcast. If you like what we're doing, check out some of our sister blog podcasts like Engadget and Joystiq - you can never have enough listening material!

Continue reading Autoblog Podcast #137

Bob Lutz unhappy with new Buick campaign?

Looks like there could be too many cooks in the Buick PR kitchen, and the soup is looking worried. For the new GM to get on its feet, Buick has to find its feet. To do that, Buick has created a number of ad campaigns meant to showcase its new product and bring new, younger buyers to the brand. One of the commercials in the campaign is called "Photo Shoot," and according to a report, the recently empowered VP of marketing, Bob Lutz, isn't particularly pleased with the spot.

Both Lutz and GM CEO Fritz Henderson don't believe the commercial positions Buick as a luxury brand that competes with Lexus. They have told GM's ad agency, Leo Burnett, that it needs to do better. However -- and here's where it gets convoluted -- the ad was created by an independent shop that Leo Burnett was told to hire to do the work. Mark LaNeve, GM's head of marketing, allegedly instructed Burnett to hire Gary Topolewski, a former creative director at Burnett who worked with LaNeve on Cadillac's Break Through ad campaign, and who now runs another ad agency.

The other character in the middle of all of this is Buick VP Susan Docherty, who defended the commercial. She said it fulfills its role of promoting a revamped Buick brand, adding that she looks "forward to working with Bob and sharing spots two through six with him." Follow the jump to watch the commercial, and you can decide if it makes you put the word "Buick" in the same sentence with "Lexus."

Continue reading Bob Lutz unhappy with new Buick campaign?

Cadillac flagship to use stretched CTS platform, two new Buicks on the way?

Cadillac's on-again, off-again plan to replace the aging DTS and STS with one flagship product - which may or may not be known as the XTS - is reportedly back on track. According to Motor Trend, the original plan to use the Zeta platform of the Holden Commodore and Pontiac G8 has been shelved in favor a stretched version of Cadillac's own Sigma chassis that underpins the smaller CTS. If there's any truth to these rumors, we should expect to see the new Caddy for the 2012 model year.

The demise of the DTS also spells impending doom for the Buick Lucerne since the two vehicles are built atop the same platform at the Detroit Hamtramck assembly plant. MT reports that Buick will get two new models to replace the Lucerne, one of which may revive the old Invicta name from the 1960s. That mid-size sedan would replace the canceled Saturn Aura and be based on the Opel Insignia, which uses the same Epsilon II platform that's used by the 2010 Buick LaCrosse.

The second new Buick will reportedly be a notch smaller and will share its compact Delta guts with the Chevrolet Cruze but be fitted with the suspension adjustments pioneered on the Opel Astra. We'll just have to wait and see how that car goes along with Fritz Henderson's proclamation that he's 'not a fan of rebadging' if it ever sees the light of day.

German economics minister reportedly says no to Opel buy-back option for GM

One of the many clauses that General Motors is reportedly trying negotiate into any deal involving majority control of Opel is the option to eventually buy back the stake it is selling.

As the theory goes, GM isn't selling Opel because it feels like it doesn't add value - Opel in fact offers huge value to GM and has had lead responsibility for developing the global mid-sized, compact and small car platforms being used by the automaker. Instead, Opel is on the block because the home office needs the cash. Thus, if GM is able to be flush with cash once again, it would like to reserve the right to regain to full control.

According to Reuters, Karl-Theodor zu Guttenberg, Germany's economics minister is having none of that business. In fact, he has apparently told Frankfurter Allgemeine Sonntagszeitung that no such clause would be allowed if Opel is to receive any German government aid. The German government is also wary of any financial groups like Belgium's RHJ International taking a stake - instead, they reportedly prefer an owner with a long term interest in the industry like Magna International.

Buick planning to carefully control supplies of LaCrosse and other models

Now that the new General Motors has been born out of the ashes of what's now Motors Liquidation Corp., management wants to avoid some of its past mistakes. One of those was letting inventory get out of control, requiring huge incentives to move the metal. That necessary evil was needed generate enough revenue to pay the bills every month, something that became impossible to do over the past year. This time around, GM plans to proactively limit production to prevent oversupply.

Traditionally, the goal has been to have a 60-day supply of a car on dealer lots. This level provides a good balance between minimal stock and having enough vehicles to allow customers to find the one they want and make a quick sale. During the launch drive of the 2010 Buick LaCrosse last week, Buick-GMC VP Susan Docherty explained that her plan is to have no more than 75 to 90 days of total supply of any model, and this particular statement has generated some confusion. Bloomberg reports this as 75 to 90 days of dealer inventory, an undesirably high figure.

In fact, after Docherty first stated that number, Motor Trend's Todd Lassa immediately asked her for further clarification. Docherty then explained to a group of journalists, including this blogger, that the 75-to-90-day supply number refers to total supply, including cars on dealer lots plus cars in transit and cars at the factory awaiting shipment. Thus, the actual corresponding dealer inventory number is really 45 to 60 days. Industry publications such as Automotive News typically report only the smaller dealer inventory numbers, not the total supply figure Docherty referred to in her media presentation.

Gallery: First Drive: 2010 Buick LaCrosse

Photos Copyright (C)2009 Sam Abuelsamid / Weblogs, Inc.

REPORT: Workers with union desk jobs being sent back to factory floor

In an action that is symbolic of the changes America's auto industry is undergoing, the cushy "union desk job" is reportedly about to disappear for many. According to The Detroit Free Press, UAW bosses at post-bankrupt Chrysler and General Motors plants are informing hundreds of elected and appointed colleagues that their desk jobs are being sent back to the factory floor.

The Detroit 3 have always paid for union workers at each plant to support labor-management initiatives, conduct union elections, and handle grievances. Most of these "desk jobs" were not at the plant, and they were reportedly enved by those required to do labor-intensive work in the factories. As such, the news is welcomed by those on the assembly line. "These people had cushy jobs," said Zeigler Johnson, a worker at Chrysler's Warren Truck plant. "Some of them could use a taste of life on the floor to remind them we still make trucks around here."

All told, the UAW is eliminating about 300 positions at Chrysler, while GM expects the change to impact less than 500 workers. The new positions are expected to take effect within the next 60 days.