GM auto news

Report: Car Wars report predicts Hyundai, Kia will lose market share

The annual "Car Wars" report by Merrill Lynch analyst John Murphy predicts that, despite their seizing of U.S. market share over the last few tumultuous years, Korean brands Hyundai and Kia will give it all back and then some to companies like Ford, General Motors and Toyota by 2016.

Murphy bases his predictions not on tea leaves or crystal balls, but rather the rate at which automakers launch new products. Ford will replace 26 percent of its product line over the next four years, a number that represents 46 percent of its volume, while General Motors will replace 25 percent and Toyota 24 percent. On account of these new product launches, Murphy says Ford can expect to add 0.8 percentage points of market share, General Motors will recover 0.5 points and Toyota will add another 0.3 points.

Other automakers that won't be so aggressive in turning over their lineups with new models include Chrysler, Honda, Nissan and the European brands, which Murphy surmises will all remain flat in terms of market share.

Hyundai and Kia, meanwhile, will be introducing fewer new models than the rest and therefore, Murphy predicts, will see a 0.5 decline in U.S. market share.

Of course, these are all just predictions and can be blown to bits with the next unforeseen economic crisis or natural disaster, just like the last three years were. And there are other factors that might affect market share for each automaker during the next three years, including the availability of raw materials, exchange rates, union contracts, recalls and a million another minor things that might grow to become big things, not the least of which is consumers deciding they actually like all those new products being launched.

Report: Ford and GM in Twitterfight over Facebook advertising?

Frenemies Ford and General Motors have taken to cyberspace for a little verbal sparing, trading snarky shots this week over which company is more likeable on Facebook.

GM set itself up Tuesday after news broke that the carmaker decided not to spend $10 million on Facebook advertising the same week the social media juggernaut prepares for its initial public offering expected to raise $100 billion dollars.

Ford used the opportunity to tweak its crosstown rival, tweeting: "It's all about the execution. Our Facebook ads are effective when strategically combined with engaging content & innovation."

GM couldn't leave that alone, going onto its Facebook page, "Just wanted to let our millions of Facebook fans know, we're still here, and we 'like' you back!"

Both carmakers will continue to use Facebook, where both have millions of followers of their brands and vehicles. And, really, they are both right.

Ford has done an extremely good job incorporating Facebook into its marketing strategy. When it came time to launch the new Ford Explorer, it did it through Facebook reaching millions of people.

GM has determined its money will be better spent in other areas. A recent Associated Press-CNBC poll showing more than half of all Facebook users never click on sponsored ads and only 12 percent said they felt comfortable to buy anything over Facebook. Google, The Wall Street Journal points out, is much more effective.

Report: GM says Facebook ads not effective, pulls campaign ahead of IPO

The Internets are buzzing over the upcoming initial public offering of Facebook, but General Motors doesn't seem all that impressed. The Huffington Post reports that The General has pulled its Facebook ad campaigns just days before the social media site is scheduled to officially hit the stock market.

The pricey ad buy reportedly wasn't paying sufficient dividends for GM, which spends billions of dollars on advertising every year. GM Spokesperson Pat Morrissey confirmed that Facebook was being reassessed, but added that the automaker routinely reviews where it is spending its ad dollars. Morrissey then added that GM is looking for effectiveness when it doles out marketing cash, which doesn't bode well for Facebook's ability to draw clicks.

If GM's decision sounds at all irrational, the statistics seem to show that Facebook isn't exactly an ad-click magnet. A recent CNBC poll showed that 50 percent of all Facebook users never click on any ads, and only 12 percent of those polled feel comfortable purchasing anything through Facebook. Google appears to be more effective at attracting clicks, as The Wall Street Journal cites a click-rate that is seven times that of Facebook.

Regardless of GM's decision to break up with Facebook, we're guessing that the news probably won't drown out much of the anticipation for the IPO. After all, it isn't every day that an Internet site with 900 million mostly addicted users goes public.

Report: Toyota, Honda top supplier survey with lower results, GM and Chrysler improve

Before financial Stargate opened in September of 2008 and transported us to an entirely new economic dimension, it was oh so common to read about domestic automakers hammering Tier One suppliers to lower their prices. Of course, suppliers are still asked to find efficiencies, but pre-2008, it seemed a point of honor to hold a supplier's feet to the fire. No more: in the latest Working Relations Index survey of suppliers by Detroit firm Planning Perspectives Inc., General Motors and Chrysler rocketed up the charts to bring the bunch much closer together.

Admittedly, the two companies are still in last place, with GM just ahead of Chrysler and Toyota and Honda still up top. But perspective and improvement is the issue here: in 2005, Toyota scored 415 and GM scored 114. In this year's survey, Toyota scored 296 and Chrysler scored 248. It is the first time in the 12 years of the survey that the six automakers covered have been separated by less than 50 points. Chrysler's jump was led by the efforts of the the late Dan Knott, whle GM's improvement has been led by Bob Socia.

And yes, this is also a matter of the perennial leaders, Toyota and Honda, suffering a dip: in 2010 Toyota scored 327 and Honda 309, two years later, Toyota has dropped 31 points. Every automaker, however, from top to bottom acknowledged that they still have work to do with supplier relations. The benefits of good feelings are that suppliers tend to present their newest tech to, and make better parts for, the automakers with whom they have the best relationships. Naturally, it has been found that the reverse is true as well.

Nissan and Ford make up the middle two spots, where they've been for years. BMW, Mercedes-Benz, Volkswagen and Hyundai aren't on the list yet; PPI feels it doesn't have enough data on the Germans to yet to officially include them, and it doesn't have enough data on Hyundai to rank it at all. If the data gathered on the Germans was included, though, they would sandwich the rest of the field: BMW and Mercedes at the top, Volkswagen at the bottom a point shy of Chrysler.

Report: Saab union asks Obama to pressure GM for licensing deal

The door has not yet closed on Saab. Hoping for yet another 11th hour stay of execution, the defunct carmaker's chief union, IF Metall, has written directly to President Obama, asking him to intervene, according to Just-Auto. While on the surface, this may seem silly, it's actually rather clever, even if it has little likelihood of working.

With the United States government still owning 26 percent of General Motors, the Swedish union is hoping it can appeal to Obama to pressure General Motors into granting licenses to continue manufacturing Saab vehicles, according to the report. It's this sticking point that has torpedoed every attempt to forestall Saab's dissolution, as GM fears that were it to allow continued production of Saabs developed under GM's ownership, it would open up the possibility of intellectual property conflicts, particularly if a Chinese manufacturer that competes with GM's own Chinese partner, SAIC, acquires Saab.

You have to admire Saab loyalists, as they clearly have not given up hope. But in this case, they just don't have any other options: Unemployment in the Saab hometown of Trollhättan has hit 40 percent, according to the report.

Official: Chevrolet Trax crossover headed to Paris, not bound for U.S.

If you're wondering why the name Trax sounds familiar, it's because we've heard it before. That's right, General Motors' chunky little crossover concept has blossomed into the production CUV you see here, and might we say, it's quite a handsome little thing.

Details about the new Trax are scarce, but since it looks to be based on the same high-riding platform derived from the Sonic that underpins the Buick Encore and Opel Mokka, so we'd expect the powertrains to simply carry over unchanged.

But know this: General Motors has no plans to offer the Trax in the United States, citing "the strong position of the Equinox" as the reason why it won't be offered Stateside. That's a shame, too. In our opinion, this baby Bowtie certainly makes more sense than the frumpy Buick Encore that doesn't really seem to fit with its brand. We suspect that Chevy dealers won't get this vehicle in part because GM wants to protect the Buick's positioning and price when it heads to U.S. dealers later this year.

The Trax will make its official debut at the Paris Motor Show in late September. For now, click the image above for a high-resolution version and scroll down to read GM's official release.

Continue reading Chevrolet Trax crossover headed to Paris, not bound for U.S.

Report: Electronics makers wary of NTSB's proposed hands-free ban

Here's one from the unsurprising file: The Consumer Electronics Association has written the National Traffic Safety Board in opposition to the proposed ban on hands-free calling.

According to The Detroit News, CEA is all for efforts to create technological solutions to the distracted driving problem, which makes perfect sense, as those products or features would be one more thing for its member firms to sell. To its credit, CEA did write that it supports banning texting and restricting phone use by young drivers.

But the organization insists that there is no "real-world evidence" to support prohibiting all phone use in vehicles, according to the report. In support of its position, it played the makeup card, saying that other distractions like "eating, drinking, applying makeup and engaging with children" would also need to be banned.

The NTSB proposal to ban hands-free calling is somewhat peculiar in that it would ban calls through a paired cell phone, but not calls through a phone built into the vehicle, like the OnStar system from General Motors. The recommendation has been controversial, with even Transportation Secretary Ray LaHood failing to get on board with the idea.

Report: Treasury has no plans to sell remaining GM stock quite yet

General Motors stock has been languishing for months, failing to climb past $30 per share since July of last year. Trading at around $22 per share today, the optimism that surrounded the company's emergence from bankruptcy and initial public offering in November 2010 has all but vanished. So it's no wonder that the United States Treasury has decided to sit on its GM shares, with no plans to sell of its remaining 26 percent stake in the automaker.

According to The Detroit News, the Treasury believes that GM is underpriced given the changes that have happened at the company. Assistant Treasury Secretary Time Massad told the News, "Our perspective is that the company has made real progress, but the market hasn't given them as much credit for that as it might."

The government stands to lose $15 billion on the bailout at today's stock prices, according to the report. Of the $49.5 billion spent on the bailout, the government has already recouped roughly $23 billion in reducing its stake in GM from the 61 percent it once held. GM shares would have to more than double in value to $53 for the Treasury to break even in liquidating the 500 million shares it still owns, according to the report.

Report: Ford to boost production by 40,000 units, shorten summer plant shutdown

The Detroit Free Press reports Ford is set to boost production by 40,000 units. The company plans to half its summer shutdown to just one week at 13 plants this July. Ford says that it is already operating most of its facilities at maximum capacity, and adding a week of production is a good way to balance manufacturing with demand. The automaker is also adding extra shifts at three of its production facilities this month. Overall, Ford will increase its production this year by a whopping 400,000 units to three million vehicles by October.

But Ford isn't the only domestic manufacturer to step up production. Chrysler is also skipping the summer shutdown at four of its plants and idling two more for one week instead of two. General Motors, meanwhile, will continue its summer plant stops as planned.

Report: 2012 U.S. auto sales on pace to be best in five years

Bloomberg reports that if U.S. auto sales continue at their current pace, 2012 will mark the best year for the industry since 2007. The news comes after word that both Ford and Chrysler have slimmed or entirely eliminated the traditional summer shutdown at their manufacturing facilities to keep pace with demand.

All told, sales may reach 14.3 million cars and light trucks, according to analysts, thanks to factors like a gradually improving economy and easier credit. If the pace continues, 2012 will mark the third year of 10-percent gains, which marks only the fourth time that's happened since the Great Depression.

Car sales stalled in 2008, and 2009 saw manufacturers move just 10.4 million units. As Bloomberg points out, that's the lowest number since 1982, but buyers took home 11.6 million vehicles in 2010 and 12.8 million in 2011. The industry saw a 10.3-percent increase through the first four months of this year. As a result, General Motors, Ford and Toyota have adjusted their yearly sales forecasts accordingly.