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  • General Motors cuts Facebook ads but adds content

    In Cars, General Motors, International News / By / / 1 comment

    Do paid advertisements on Facebook work? General Motors says no. The American car company is getting ready to stop advertising on Facebook, just when the social media giant is getting ready to sell shares in an initial public offering.

    Last year, GM spent US$10 million on Facebook advertisements, but it is only a fraction of the company’s $1.8 billion US ad spending. The amount only makes up a small share of the social media’s total income of US$3.7 billion,  most of which comes from ad revenue.

    Wall Street Journal quoted Joel Ewanick, GM’s marketing chief, in saying that the car manufacturer “is definitely reassessing our advertising on Facebook, although content is effective and important.” This means that GM will not be pulling out of Facebook completely.

    The Detroit-based carmaker invests about US$30 million on content for the company’s Facebook page. In fact, in the wake of the news, GM has posted on their page saying:

    Just wanted to let our millions of Facebook fans know, we’re still here, and we ‘like’ you back! We may not be advertising on Facebook at the moment but we’ll still be talking with you all daily. If anything, we will be providing more content across our many GM Facebook pages – including Chevrolet, Buick, GMC and Cadillac – to keep the dialogue going.

    General Motors is not the only one with doubts. Kia is also unclear how Facebook ads can help direct traffic into its dealerships. However, Subaru is sticking to their guns and will continue to advertise on Facebook. “If the return on investment is there, we will spend more next year,” said Dean Evans, chief marketing officer for Subaru of America.

    Source: The Wall Street Journal, GM Facebook page

     

  • Prototype EV battery explodes at a GM research lab

    In Cars, General Motors, Hybrids and Alternative Fuel, International News / By / / 21 comments

    We sometimes tend to forget that batteries tend to be potentially volatile things – they can, if stressed beyond reasonable measure, go south, like catch fire and blow up.

    That’s what happened to a prototype EV battery at GM’s Technical Center battery research lab a couple of days ago – it blew up, leaving plenty of damage but only one person requiring minor treatment for concussion and some checmical burns.

    According to reports, a small fire had started due to “extreme testing of a prototype battery,” and the resultant explosion of the battery caused significant structural damage in the area used to test lithium-ion batteries.

    GM did not state the kind of battery that exploded, but did say that it was an A123 Systems unit, and that it was undergoing tests that were meant to stress the battery. The automaker was quick to add that the battery was not Chevrolet Volt-related, in a bid to protect the car from more negative publicity than it has had already, with regards to battery-related safety.

    In May last year, a Volt caught fire after a National Highway Traffic Safety Administration (NHTSA) side-impact crash test was carried out on the vehicle, which prompted an investigation on the safety of lithium-ion batteries used for EVs. Last November, a further three Volts were tested by the NHTSA, and two out of three either sparked or caught fire while the third remained normal, the reports add.

     

  • PSA Peugeot Citroën forms alliance with GM – platform sharing, joint purchasing and development on the cards

    In Cars, Citroën, General Motors, International News, Peugeot / By / / 8 comments

    PSA Peugeot Citroën and General Motors have formed an alliance. The move will see the US carmaker buy a 7% stake in PSA as part of a share issue by the French automaker. GM says it expects to spend from $400 million to $470 million on that.

    “This partnership brings tremendous opportunity for our two companies. The alliance synergies, in addition to our independent plans, position GM for long-term sustainable profitability in Europe,” said GM CEO Dan Akerson. But “each company will continue to market and sell its vehicles independently and on a competitive basis,” the statement added.

    The scope of the alliance includes the sharing of vehicle platforms, components and modules, and the creation of a global purchasing joint venture for the sourcing of commodities, components and other goods and services from suppliers with combined annual volumes of approximately $125 billion. Bigger buyer gets better deals, as always.

    There is also talk on joint development. GM and PSA said the alliance will at first focus on small and midsize vehicles, MPVs and crossovers. The carmakers may also develop a new common platform for low emission vehicles, with the first model expected to debut in 2016.

    Cost savings from the deal will be limited in the first two years, but will eventually amount to $2 billion annually, split equally, the companies said. The deal is expected to close and take effect by the second half of this year.

    GM is certainly not new in linking up with other companies. The US carmaker had shares in Suzuki Motor Corp, Isuzu Motors and Subaru maker Fuji Heavy Industries before disposing off the stakes few years ago. In the same period, but in Europe, GM had to pay Fiat to end an unsuccessful alliance. They also flirted with Renault-Nissan before. GM’s Opel brand is not doing well at all in Europe, and this move has it in mind.

    On the other hand, Peugeot has a better track record with other carmakers, including JVs to build commercial vans with Fiat and an engine partnership with BMW. PSA also makes diesel powertrains with Ford and sells Mitsubishi models in Europe with its own face and badge.

     

  • GM and PSA Peugeot-Citroen in possible alliance talks

    In Cars, General Motors, International News, Peugeot / By / / 6 comments

    Reports have it that General Motors and PSA/Peugeot-Citroen are in talks about a possible alliance. The news broke after PSA CEO Philippe Varin informed the French government – French Labor Minister Xavier Bertrand confirmed that Varin had told him about the talks between the two automakers earlier in the week.

    Reuters reported that the two companies are discussing a broad manufacturing alliance, designed to stem losses in Europe and lower production costs in other markets, with a focus on sharing vehicles and parts rather than on a capital tie-up. PSA did however say in a statement that “there can be no certainty at this stage that these discussions will result in any agreement.”

    It was also reported elsewhere that a tie-up would see the automakers jointly build cars and components in Europe. If the deal comes through, then PSA and GM’s Opel/Vauxhall unit are set to jointly develop engines, transmission systems and complete vehicles, which will then be sold under their respective brands.

    Both companies are lagging behind in the European market – GM’s European business, including the Opel brand, was US$747 million in the red, before taxes and interest, with sales dropping by 1.9% to 1.17 million units. Meanwhile, PSA’s 2011 European sales volume went down by 8.8% to 1.68 million units.

    If there’s a positive outcome to the discussions, an accord could well be announced at the Geneva show early next month, yet another report indicated.

     

  • Toyota to lose No 1 spot for 2011 – GM to return to top of the heap, while Volkswagen moves into second place

    In Cars, General Motors, International News, Toyota, Volkswagen / By / / 29 comments

    It hasn’t been a good year for Japanese automakers, with the Japanese earthquake earlier in the year and more recently, floods in Thailand disrupting production, schedule and plans. All this has certainly lost them a fair bit of ground in terms of sales and expansion.

    Toyota, the world’s number one automaker, looks set to lose the most – the company is set to cede the top spot in global new-vehicle sales in 2011 to the resurgent General Motors, according to reports. Toyota was No. 1 for the past three years, but now looks certain to drop to third place after the Asian disasters forced the company to cut production at home and abroad.

    GM’s global sales for the January-September period rose 9% on the year to 6.79 million units, and with sales in Q4 on track to outpace the 2.17 million units recorded in same 2010 period, the US automaker’s full-year total is likely to exceed nine million units. This number would be 20% above the figure for 2009, when the company filed for bankruptcy.

    Meanwhile, Volkswagen is expected to advance one spot to second place, with group sales surging 14% on the year to 6.17 million units in the first nine months of 2011. In 2010, Toyota and GM were the only carmakers to achieve more than eight million units sold – VW is positioned to reach that milestone for the first time this year, helped by double-digit sales growth in Europe, North America and Asia-Pacific, the reports say.

    As for Toyota, its January-September sales slid 9% on the year to 5.77 million units, and with the effects of the Thai floods set to impact the October-December figures, it looks unlikely that Toyota will narrow the gap with GM and VW, which have also enjoyed a head start the world’s largest market, China.

    Elsewhere, Hyundai, which surged past Ford in 2010, is on pace to consolidate its position thanks to robust sales in the US, China and other key markets – the company has already upgraded its sales forecast for the full year to at least 6.5 million units, from the 6.33 million units projected, the reports add.

     

  • GM to introduce industry’s first front centre airbag

    In Cars, General Motors, International News, Technology / By / / 9 comments

    One more added on the safety item list. General Motors is set to introduce the industry’s first front center airbag, which is an inflatable restraint designed to help protect drivers and front passengers in far-side impact crashes.

    Designed to work collectively with the other airbags and safety belts in a vehicle, the front centre airbag deploys from the right side of the driver’s seat and positions itself between the front row seats near the centre of the vehicle.


    Without, and with, the FCAB, single front occupant. Looks painful.

    The tethered, tubular airbag is designed to provide restraint during passenger-side crashes, be it with a single or double front occupant scenario – the airbag acts as an energy absorbing cushion between driver and front passenger in both driver- and passenger-side crashes. It is also expected to provide benefit in rollovers.

    GM and its technology supplier Takata developed the airbag over the course of three years, testing many design iterations to achieve packaging, cushioning, and restraint in a variety of crashes and occupant positions.


    Without, and with, the FCAB, two front occupants. Definitely painful.

    While the front centre airbag is not required by US federal regulations, it is expected to improve the safety performance measurements in such-equipped vehicles in terms of third-party crash test performance.

    The front centre air bag will be introduced by GM on the Buick Enclave, GMC Acadia, and Chevrolet Traverse midsize crossovers in the 2013 model year, and will be standard fitment on Acadia and Traverse with power seats and all Enclave models.

    GM FCAB double occupant comparo
    GM FCAB front on
    GM FCAB side front profile
    GM FCAB single occupant comparo


     

  • General Motors opens new diesel engine plant in Thailand

    In Cars, General Motors, International News / By / / 43 comments

    General Motors has officially opened a new diesel plant in Rayong, Thailand. The new plant which is worth $200 million and is the company’s first diesel factory in region will be the first in the world to produce the new line of Duramax 4-pot oil burners that will be first installed in the Colorado pickup.

    These Duramax engines are made up by a 2.5 litre as well as a 2.8 litre variant featuring overhead cams, force-induction and aluminum cylinder heads. General Motors confirmed that the plant is able to churn out 120,000 engines per year and these engines will used for vehicles manufactured in the country and in other markets.

    The 54,275 square meter plant will have up to 500 employees by the end of the year and houses various state-of-the-art computers and laser-guided equipments. It is also dust-free and features an in-house climate control system to ensure the best possible environment for engine production. Furthermore, the plant uses a lighting system that consumes 40% less energy compared to conventional systems.

    General Motors also revealed that it is expected to source Thai-built components that is worth $94 million for the engine production by 2012. The opening of the new plant comes after the company announced plans to invest up to $150 million in the revival of its Bekasi manufacturing facility in Indonesia which will output a new line of people movers for other Southeast Asian markets.

    Since the Chevrolet Colorado was brought up in this article, it is worth to point out that the pickup is expected to make its local debut sometime in December 2011 following a recent announcement by Naza Quest CEO Datuk Maruan Mohd Said.

     

  • Facelifted Chevrolet Captiva is here – 2.4 petrol, RM155k

    In Cars, Chevrolet, General Motors, Local News / By / / 58 comments


    UPDATE: Full gallery from the launch event added

    Naza Quest, distributor of Chevrolet vehicles in Malaysia, launched the facelifted Chevrolet Captiva at its Jalan Ampang showroom this afternoon. This introduction is the start of a busy period for the General Motors brand in Malaysia, which will see the Colorado pick-up truck launched here later this year. There are also a few new models coming our way in 2012.

    Back to the main point. This facelifted Captiva was first seen late last year, making its world debut at the Paris Motor Show. It wears a bold new grille that totally dominates the front end; not too all tastes, but it sure does give the Captiva plenty of road presence.

    It’s not just the grille, but the entire front end, including bonnet and headlights, is new. The wing mirror indicators are now LEDs, and the 18-inch alloys you see here are standard. The rear end is untouched, however.

    The interior ambiance of the original Captiva wasn’t one of its strong points, feeling very old fashioned (green lighting, with Casio style green digits) and cluttered. It’s much improved now with metallic elements and a slightly revised layout. There are additional storage spaces and the redesigned dials and displays now come with Ice Blue illumination, a Chevy trend.

    There’s also a new panel between the centre air con vents that quite high-end Nissan/Infiniti in style. It carries a digital clock and buttons for ESP, Hill Descent Control and Rear A/C.

    Blank buttons are not in sight – the Captiva comes very well equipped. The steering wheel has controls for the stereo (with Bluetooth and ’3D Sound Stage’), cruise control and air con – the latter is new and very useful.

    There’s also an ECO mode button (helps economy) and an electronic parking brake, a class first. Another new feature is Hill Start Assist, which holds the car on gradients (of 3% onwards) for 1.5 seconds after the brake pedal has been released, preventing rollback.

    That’s quite a lot of changes for a mid life update, but the Captiva comes with a new drivetrain as well. Still displacing 2.4 litres (it’s actually 2,384 cc now, from 2,405 cc), the new petrol engine with Double CVC makes 165 hp and 225 Nm of torque, 21% and 2% more than the old model, respectively. This DOHC 16v Ecotec unit is now paired to a 6-speed automatic with Tiptronic, one forward ratio more than before. We’re getting only the AWD model.

    The results are positive. Fuel consumption for this 1,860 kg seven seater SUV is now 9.1 litres per 100 km, quite a bit better than the old 10.4 litres per 100 km. CO2 emissions is down by 14% as well.

    What happened to the diesel variant, you ask? We asked too, and Naza Quest bosses said that that one is coming in the fourth quarter of this year, which is not too far away from now.

    Safety kit includes dual front airbags, curtain airbags, ABS, EBD, Brake Assist, ESP and ISOFIX mounts for child seats. Imported from Thailand, the new Captiva is priced at RM155,185.20 on the road excluding insurance. Six colours are available, including a new Auburn Brown, which wasn’t on display at the launch.

    Full gallery from the event is after the jump.
    Read more ›

     

  • SAIC-GM to sell Chinese minivans in India by 2012

    In Cars, General Motors, International News / By / / 9 comments

    Chinese minivans are set to make their move into a new market – India. Reports say that General Motors and its Chinese partner Shanghai Automotive Industry Corp will start building the minivans in complete knockdown form in India next year.

    SAIC-GM-Wuling Automobile will begin entry into the market with the eight-seater Wuling Hong Guang and five- to eight-seater Hong Tu models, which will be renamed the CN100 and N200 respectively in the Indian market. Sold under the Chevrolet brand, the left-hand drive microvans will be modified for India’s right-hand drive market.

    Initially, two engine choices will be available for each model, the Hong Guang wearing either a 70 hp 1.2 or 100 hp 1.4 litre P-TEC mill, and the Hong Tu a 1.15 or 1.2 litre unit, though with India being a heavy diesel market the alliance is set to expand the engine lineup for the vehicles in the coming future.

    The vehicles will be shipped from Liuzhou in southwest China in kit form and then assembled at GM India’s new Talegaon plant in Maharashtra.

     

  • Long live Corvette! GM pours $131m into Kentucky plant to support production of next generation car, due in 2013

    In Cars, Chevrolet, General Motors, International News / By / / 5 comments

    The legendary Corvette name, around since the 50s, will live on after the current sixth-gen car expires. GM has announced that it will invest $131 million in the Bowling Green assembly plant to support production of the next generation Corvette.

    The Kentucky plant is scheduled to continue building the current generation Corvette for at least the next two model years, including the 2012 car that begins this summer. Bowling Green is the exclusive manufacturer of all versions of the Corvette – Coupe, Convertible, Grand Sport, Z06, and ZR1 – and has been the birth place of Corvette since 1981.

    About 50,000 tourists visit the plant annually to catch a glimpse of the manufacturing process, some even watching their new cars being completed before taking delivery from the neighbouring National Corvette Museum. By the way, did you know that the Corvette is the “official state sports car of Kentucky”?

    “This is a significant day for anyone who believes that America should build world-class, high-performance products. Corvette has no domestic peer for performance and pedigree and stands alongside the world’s best supercars with almost 60 years of continuous heritage,” said Mark Reuss, GM North America president.

    Click here for more pics of the recently released Centennial Edition Corvette.

     
 
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