Posts Tagged ‘GM

12
Aug
10

Recovery still distant as GM turns a corner

NEWS
Recovery still distant as GM turns a corner
General Motors profits move past $1 billion

Thursday, August 12, 2010

••• General Motors said on Thursday its profits hit $1.3 billion in the second quarter, as the car company prepared to break free of U.S. government ownership by relisting on the stock exchange.

‘I am pleased with our progress on achieving our business objectives,’ said chief financial officer Chris Liddell, announcing the second consecutive quarter of growth.

The company erased a loss of $13 billion in the same period last year, as sales and revenues increased.

The firm saw stronger sales in North America in the quarter, even as sales in Europe floundered and market share around the world sank.

GM captured 15.4 percent of the U.S. market for cars versus 17.5 percent in the second quarter of last year, but elsewhere faired poorly.

GM’s executives have said that a public offering will come soon, a process that will help the U.S. government unwind its majority stake in the firm.

The U.S. Treasury Department still owns 61 percent of GM, which received $50 billion of U.S. government financing for its bankruptcy restructuring that led to mass layoffs, plant closures and billions of dollars in debt wiped out.

GM’s drive for an IPO will be boosted by news that the firm’s revenues swelled to $33 billion in the second quarter, a third more than the same period last year.

GM as well as its U.S. competitors Ford and Chrysler were hard hit by the recession which struck the United States in December 2007, caused by a home mortgage meltdown.

Of the so-called Detroit Three car makers, Ford was the only one to avoid bankruptcy, managing to stay afloat thanks to massive loans it had obtained prior to the credit crunch and because it moved more quickly to revitalise its product portfolio.
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31
Jul
10

Weekly Address: Good News on Autos, Obstruction on Small Business

NEWS
Weekly Address: Good News on Autos, Obstruction on Small Business
President Obama Hails Successes of the Restructuring of the Auto Industry, Calls on GOP Leaders to Stop Blocking Aid for Small Businesses

Saturday, July 31, 2010

In this week’s address, President Obama praised the successes of the auto industry restructuring. When his administration decided to invest in the American car companies, some said such a move was bound to fail. But since GM and Chrysler have emerged from bankruptcy, the auto industry has added 55,000 jobs – the strongest growth in 10 years – and for the first time since 2004, all three companies are operating at a profit. The President also called on Republican leaders in the Senate to stop blocking a vote on a bill helping small businesses. Even though this bill will help the recovery, and has been endorsed by groups like the Chamber of Commerce and the National Federation of Independent Business, the Republican Senate leadership continues to hold it hostage to politics by denying an up-or-down vote on the bill.

Hello everyone. I’m speaking to you from the GM auto plant here in Detroit, Michigan, where a hopeful story is unfolding in a place that’s been one of the hardest hit in America.

In the twelve months before I took office, American auto companies lost hundreds of thousands of jobs. Sales plunged 40 percent. Liquidation was a very real possibility. Years of papering over tough problems and failing to adapt to changing times – combined with a vicious economic crisis – brought an industry that’s been the symbol of our manufacturing might for a century to the brink of collapse.

We didn’t have many good options. On one hand, we could have continued the practice of handing out billions of taxpayer dollars to the auto industry with no real strings attached. On the other hand, we could have walked away and allowed two major auto companies to go out of business – which could have wiped out one million American jobs.

I refused to let that happen. So we came up with a third way. We said to the auto companies – if you’re willing to make the hard decisions necessary to adapt and compete in the 21st century, we’ll make a one-time investment in your future.

Of course, if some folks had their way, none of this would be happening at all. This plant might not exist. There were leaders of the “just say no” crowd in Washington who argued that standing by the auto industry would guarantee failure. One called it “the worst investment you could possibly make.” They said we should just walk away and let these jobs go.

Today, the men and women in this plant are proving these cynics wrong. Since GM and Chrysler emerged from bankruptcy, our auto industry has added 55,000 jobs – the strongest period of job growth in more than ten years. For the first time since 2004, all three American automakers are operating at a profit. Sales have begun to rebound. And plants like this that wouldn’t have existed if all of us didn’t act are now operating maximum capacity.

What’s more, thanks to our investments, a lot of these auto companies are reinventing themselves to meet the demands of a new age. At this plant, they’re hard at work building the high-quality, fuel-efficient cars of tomorrow – cars like the plug-in hybrid Chevy Volt that can run 40 miles before taking a sip of gasoline. Throughout Michigan, an advanced battery industry is taking root that will power clean electric cars – an industry that produced only 2 percent of the world’s advanced batteries last year, but will now be able to produce as much as 40 percent in a little over five years. That’s real progress.

There’s no doubt that we have a long way to go and a lot of work to do before folks here and across the country can feel whole again. But what’s important is that we’re finally beginning to see some of the tough decisions we made pay off. And if we had listened to the cynics and the naysayers – if we had simply done what the politics of the moment required – none of this progress would have happened.

Still, even as these icons of American industry are being reborn, we also need to stand shoulder-to-shoulder with America’s small businessmen and women, as well – particularly since they’re the ones who create most of the new jobs in this country.

As we work to rebuild our economy, I can’t imagine anything more common-sense than giving additional tax breaks and badly-needed lending assistance to America’s small business owners so they can grow and hire. That’s what we’re trying to do with the Small Business Jobs Act – a bill that has been praised as being good for small businesses by groups like the Chamber of Commerce and the National Federation of Independent Business. It’s a bill that includes provision after provision authored by both Democrats and Republicans. But yesterday, the Republican leaders in the Senate once again used parliamentary procedures to block it. Understand, a majority of Senators support the plan. It’s just that the Republican leaders in the Senate won’t even allow it to come up for a vote.

That isn’t right. And I’m calling on the Republican leaders in the Senate to stop holding America’s small businesses hostage to politics, and allow an up-or-down vote on this small business jobs bill.

At a time when America is just starting to move forward again, we can’t afford the do-nothing policies and partisan maneuvering that will only take us backward. I won’t stand here and pretend everything’s wonderful. I know that times are tough. But what I also know is that we’ve made it through tough times before. And we’ll make it through again. The men and women hard at work in this plant make me absolutely confident of that.

So to all the naysayers out there, I say this: Don’t ever bet against the American people. Because we don’t take the easy way out. That’s not how we deal with challenge. That’s not how we build this country into the greatest economic power the world has ever known. We did it by summoning the courage to persevere, and adapt, and push this country forward, inch by inch. That’s the spirit I see in this plant today, and as long as I have the privilege of being your President, I will keep fighting alongside you until we reach a better day.
Thanks.

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• Source(s): The White House
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30
Jul
10

President Obama in Detroit: The Fight for America’s Workers

NEWS
President Obama in Detroit: The Fight for America’s Workers
President Obama hails auto bailout as good news in Michigan

Friday, July 30, 2010

Today the President was in Detroit visiting workers at a Chrysler plant and a GM plant that have not only survived, but found success after critics looking to score political points claimed there was no hope for them. For those critics the President offered a lesson: “Don’t bet against the American worker.”

During the two years since the economy took its hard downward turn, millions of Americans have had to fight with everything they had to stay afloat, to keep food on the table, to keep their businesses in business – and nowhere has that been more true than in Detroit.

The President has also been fighting alongside America’s workers – from the Recovery Act that’s saved or created about 3 million jobs, to the fight today over small business lending – and of course for the workers in Detroit and across America who contribute to the decades-old craft of American cars. When political opponents said that helping the American auto industry survive was a lost cause, and tried to turn public frustration against the President, he stepped in and made the hard choices anyway. There couldn’t necessarily be a life raft for everybody, but he was not going to let a million American jobs fall by the wayside simply because it opened him up for cheap political attacks.
And as the report released yesterday made clear, that investment is paying off: “In the year before GM and Chrysler emerged from bankruptcy, the auto industry shed 334,000 jobs. In the year since, auto industry employment has increased by 55,000 jobs. This is the fastest year-over-year growth in auto employment since 1999.” Not only that, but with a boost from the Recovery Act’s investments in the clean energy economy, the industry has turned toward the future in ways many thought they never could. A quick look at the interactive map released yesterday gives a glimpse of how America can move back to the front of the pack in the coming generation of fuel efficient and electric vehicles.

In his visit to the Chrysler Jefferson North Assembly Plant, speaking to workers who have had to fight just to keep working, it was clear the President felt in a bit of a fighting mood himself:

The President: Investments like those mean jobs for American workers to do what they’ve always done: build great products and sell them around the world.

So the bottom line is this – we’ve got a long way to go, but we’re beginning to see some of these tough decisions pay off. We are moving forward.

I want you to remember, though, if some folks had their way, none of this would have been happening. I just want to point that out. Right? I mean this – this plant – this plant and your jobs might not exist. There were leaders of the “just say no” crowd in Washington – they were saying – oh, standing by the auto industry would guarantee failure. One of them called it “the worst investment you could possibly make.”

Audience: Boo!

The President: They said – they said we should just walk way and let those jobs go.

Audience: Boo!

The President: I wish they were standing here today. (Applause.) I wish they could see what I’m seeing in this plant and talk to the workers who are here taking pride in building a world-class vehicle. I don’t think they’d be willing to look you in the eye and say that you were a bad investment. They might just come around if they were standing here and admit that by standing by a great American industry and the good people who work for it, that we did the right thing. It’s hard for them to say that. You know, they like admitting when I do the right thing. (Laughter.) But they might have had to admit it. And I want all of you to know, I will bet on the American worker any day of the week! (Applause.)

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• Source(s): The White House
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15
Apr
10

Mazda Recall Adds To Japan’s Car Woes

NEWS
Mazda Recall Adds To Japan’s Car Woes

Thursday, April 15, 2010

••• Japan’s Mazda Motor will recall nearly 90,000 passenger cars domestically and in China due to an oil hose defect, the company said on Thursday.

The company, which is part owned by U.S. auto giant Ford, will start recalling 35,181 units in Japan and some 54,000 in China of the Mazda 3, known as the Axela in Japan, the automaker’s most popular model.

Mazda said the cars, produced from January 2006 to March 2009, have been recalled because an oil hose and a radiator shroud panel have been placed too close together and may be damaged by friction when travelling on bumpy terrain, leading to potential leaks.

‘The company has received two cases of complaints due to the problem, both in China,’ said a Mazda spokesman who asked not to be named.

‘No accident because of it has been reported.’

The Mazda 3 compact car is widely sold in Japan, China and Europe, said the spokesman, who added that no decision had yet been taken if the recall will affect the European market.
Japanese car maker Toyota has suspended worldwide sales of the Lexus GX 460 sport utility vehicle due to a roll-over risk, saying it will test all its SUVs for safety.

‘The company has decided to suspend the SUV’s sales worldwide …,’ Toyota spokeswoman Mieko Iwasaki said on Thursday.

The move comes a day after Toyota suspended sales of the GX in the U.S. and Canada after U.S. magazine Consumer Reports gave the SUV a rare ‘Don’t Buy: Safety Risk’ rating.

The report claimed that when pushed to its limits, the rear of the GX ‘slid out until the vehicle was almost sideways before the electronic stability control system was able to regain control’.

Having now suspended the SUV’s sales worldwide, Toyota said it will work on analysing potential safety risks in the model which has sold 6000 units, as well as its other SUVs.

Toyota will start testing all the other SUV models, including the Land Cruiser, Land Cruiser Prado and Rav4 but the company will continue to sell those models.

The car maker has recalled millions of vehicles worldwide since late 2009, mostly over a series of problems linked to ‘unintended acceleration’.

Toyota, which overtook General Motors in 2008 as the top-selling car maker, has been bedevilled by a series of safety issues that have raised questions about whether it sacrificed its legendary quality to become world number one.

The recalls have caused an outcry in the U.S., with Toyota executives hauled over the coals in the US Congress and the company’s previously stellar reputation for safety left in tatters.

The company faces a record $16.4 million fine in the U.S. for its failure to notify authorities quickly about vehicle safety problems.

• Customers who have any questions or concerns should contact Lexus Customer Satisfaction at 1-800-25 LEXUS or 1-800-255-3987.

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27
Mar
10

GM Recalls 5,000 Heavy Duty Vans for Engine Fire Risk

NEWS
GM Recalls 5,000 Heavy Duty Vans for Engine Fire Risk

Saturday, March 27, 2010

••• General Motors is recalling about 5,000 heavy-duty vans because of a risk of engine fire, the company said Friday.

The vans involved in the recall are the 2010 Chevrolet Express and GMC Savana passenger and cargo vans. The company also is halting production and sales of the vehicles “until a fix for a suspected faulty alternator can be determined.”

GM spokesman Alan Adler said there have been no injuries or accidents reported in connection with the vans.

The company warned customers who purchased the vans, which were built in February and March, to stop driving them and park them outside away from buildings and other vehicles and, if possible, disconnect both battery cables.

Relatively few of the recalled vans are in the possession of retail customers, with about 1,300 in rental and other fleets,the company said.

GM issued a stop sale order on Friday, preventing the fleet-owned vans from being rented or those on dealer lots from being sold. Others are being held at dealerships or in ports before being exported.

Only the 2500, three-quarter ton, and 3500, one-ton, Series vans are affected. Light-duty (half-ton) Express and Savana vans use a different alternator.

It is rare for an automaker to halt sales because of a safety defect. GM’s decision to stop sales of the vans comes two months after Toyota Motor Corp. halted sales of eight models because of faulty accelerator pedals.

▪ Vehicles affected are the Chevrolet Express 2010 van, Model 2500 / 3500 with vehicle identification numbers from A1129327 to A1142523.

▪ Also, the GMC Savana 2010 van, Model 2500 / 3500 with vehicle identification numbers from A1128784 to A1901915.

▪ About 1,400 AC Delco aftermarket parts also are affected by the recall. The affected part numbers are: 15200110; 15288861; 15263859 and 15847291. Customers who had a heavy duty alternator replaced in February or March in a 2005-2010 heavy-duty Express or Savana van or other 2005-2009 GM truck or SUV also are being urged to check their repair order receipts to determine if a suspect part was involved. If it was, or the part used is unknown, they are urged to stop driving their vehicles, park them away from buildings and other vehicles and, if possible, disconnect both battery cables.

These owners also are asked to contact their Customer Assistance Center to provide their contact information, so we can follow up with them when more information is available. ▪ www.gm.com

• Source(s): General Motors

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