GM Starts production of Lithium-ion Batteries at its Brownstown Plant

General Motors has started producing lithium-ion batteries in its Brownstown plant upon seeing huge demand for electric cars. Car makers are now turning their attention to the flourishing electric car market which has been growing steadily. Reports also claim that growth of electric vehicles in the auto market will be increased significantly over the next decade.

Naturally, GM also looks to strengthen its presence in electric car market. GM showed its Chevrolet Volt electric car, first from GM, at the North American International Auto Show in 2007. The new 160,000-square-foot plant at Brownstown costs $43-million and will be used for producing lithium-ion batteries for the electric vehicles like Chevrolet Volt and others.

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German Government Unhappy with the Cancellation of GM’s Opel Deal

It is quite natural that German government would not be happy with General Motors’ failure to sell its Opel division to Canadian automaker Magna as well as Sperbank, an investment bank in Russia. Recently, General Motors (GM) has announced the cancellation of a proposed deal with Magna over the acquisition of Opel. However, having seen excellent sales over the last two months indicating a steady recovery from Economic recession, GM decided not to sell its Opel.

Opel is a Germany based automaker, in fact, the second largest automaker in the country. However, GM was facing a tough condition during the recession period and at one stage it seemed that the American automaker would have to close down its four Opel plants in Germany and lay-off several thousands of workers. However, German government, who provided .5 billion Euros to Opel as loan, was optimistic about Opel’s future when Magna assured that it would not close down the Opel plants in Germany and lay-off maximum 2,600 out of 25,000 workers.

GM has now said that it would restructure Opel and apologized for their decision of not selling Opel. German Chancellor Angela Merkel also condemned GM and now wants a solution to the problem.

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GM and Ford Saw Increase in October Sales in the US

As the economic recession is almost over, the automobile market in the US is gradually recovering. Leading automakers like General Motors (GM) and Ford experienced year on year increase in October. Though overall sales in October were not very promising, the market was better than the previous month. Chrysler Group, however, could not match the success of fellow automakers like GM and Ford as the company’s October sales were 30% down compared to the same period last year.

Autodata Corp has estimated the total sales of October 2009 at 838,052, just 104 units fewer than the same month of the last year. However, the October sales were 12% up from the total sales volume of September. So, it is pretty much clear that the market is in a recovery process and automakers have a good phase of time ahead of them.

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Asian Automakers Lost Market Share in USA in May 2009

May 2009 saw a bad month for Asian carmakers in the US auto market. Asian automakers lost 2.5 percentage market share in May as their overall market share stands at 45.6 percent. This has been the first such drop for the Asian carmakers in the US. Well, it does not mean that the competitors of Asian car makers in US market fared very well in May, but Asian car makers experienced more dip in their sales compared to their competitors.

Japanese and South Korean automakers declined 37 percent in their May sales, while other competitors in the market saw 32 percent drop in their sales last month. It was a bit strange because some US-based car makers like GM and Chrysler have been bankrupted, while Asian automakers were favored by increasing fuel price.

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June US auto sales: GM takes the leading position

The month of June has been terrible for the American automakers as they observed their sales further went down. Interestingly, GM took the leading position in the USA in car sales over Toyota Motor Corporation (TYO: 7203). Still, sales of GM dropped by 18.2%. Another good news is that GM observed more than 2% rise in its share prices on July 1^st after hitting their lowest point in the last fifty years on 30^th June. GM (NYSE:GM) reported that it sold 262,329 vehicles in June compared with Toyota’s 193,234. In June GM’s car sales fell 21% and in the first six months, overall sales went down by 16.3%. On the other hand, Toyota’s sales fell 6.8% in the first six months.

In June, car sales of Toyota fell 9.4% and truck sales dropped 38.8%. Ford sales dropped 28% and Chrysler 35.9%.

In 2007 Toyota Motor Corporation almost caught GM in car sales but took over in vehicle production. In the first quarter of 2008 Toyota took the sales lead.

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Toyota increases its stake in Fuji Heavy Industries Ltd.

Toyota Motor Corporation (TYO: 7203) is going to raise its stake in Fuji Heavy Industries Ltd.(TYO:7270), the maker of Subaru cars. After the deal is completed, Toyota Motor will be the largest stake holder in Fuji Heavy Industries Ltd. Earlier, GM (NYSE:GM) was the largest stake holder of the company but in a move to collect cash for restructuring, the company sold its portion in 2005. Currently, Toyota Motor Corporation holds 9.5% stake. After this deal, Toyota’s stake will rise to 16.61% (nearly 17%). Toyota is going to pay $293 million for 61 million shares of Fuji Heavy.

Amidst global economic crisis and rising oil price, mergers like this have become a common move among the automakers to decrease the cost of research and development. Toyota has joined with Subaru to develop hybrid cars in which, Toyota is currently one of the market leaders.

In 2005, GM sold its 20% stake in Subaru followed by Suzuki Motor Corporation (TYO:7269) and Isuzu Motors Limited (TYO:7202) in 2006. Toyota also bought shares of Isuzu Motors Limited. The deal between Toyota and Fuji is expected to be finished on July 14.

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Toyota outsales GM in June but there is nothing to be happy about it

Toyota Motor Corporation(TYO: 7203), the largest automaker of Japan will over take General Motors Corporation(NYSE:GM) in the monthly US sales in June but there is nothing to be happy about it as the US economic slowdown is still continuing and the automaker is struggling with downward auto sales. Auto industry experts and analysts are expecting another “double digit dip” in auto sales in June.

Higher fuel price, weak economy, and lower consumer confidence has resulted into switching over small fuel efficient cars and cross over vehicles. This has proved to be a boon for the Japanese automakers like Toyota Motor Corporation and Honda Motor Company Limited (TYO: 7267) that depends less on the sales of trucks and SUVs like the three largest American vehicle makers: GM, Ford and Chrysler.

Still, Toyota is experiencing its share of problems. The company is hardly keeping up with the high demand of its Hybrid Prius. More over, it has cut down its pickup and light truck production.

Famous marketing consulting firm, J.D. Power and Associates, is predicting that, with continuation of the present trend, the ‘annualized sales rate’ for June would be 12.5 million vehicles ; the lowest monthly sales since 1992.

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Toyota lowers its expectation over US automarket

Because of rapid decline in truck sales, the top three American automakers: Ford, GM, and Chrysler are losing market. GM may observe its auto sales falling below 20%. Because of slow economy, falling home values and rising gasoline prices, people are losing interest in buying big trucks and SUVs which are the prominent products of the American automakers. Because of its high quality fuel efficient vehicles, Toyota Motor Corporation (TYO: 7203)may have survived the fall but ultimately the company would not be able to avoid a drop in sales.The top Japanese automaker is now thinking of lowering its US sales forecast. Bloggingstocks.com

Now, the Japanese company is beginning to realize that the US auto picture is so bad that even its quality and fuel-efficiency may have limits when the world's largest market falls into a recession. According to the FT, "Toyota, the world's top-selling carmaker, is considering downgrading its US sales forecast to account for a worsening outlook for pick-up trucks and other big vehicles in its largest market."

Toyota had hoped to sell 2.64 million vehicles in America this year.

The USA is Toyota’s biggest market. Like its rivals, looking at the rising sales in the first quarter, Toyota became very ambitious and invested heavily on its pick-ups and SUVs. As a result, it is now suffering from lower sales. Still, Toyota will be able to pull through this recession for its hight quality products and strong financial condition compared to other automakers.

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Toyota and Nissan acquire top position in April Japan car production

With the rising price of fuel, Japanese cars have become ‘hot cakes’ in North America. In April, Toyota Motor Corporation (TYO: 7203) and Nissan Motor Company Limited (TYO: 7201) took the top position in car production in Japan. According to the latest figure published by Japan Automobile Manufacturers Association, the combined auto production of twelve major Japanese automakers have increased 5.4% to 917,951 and exports increased 21% to 584,059.

Currently, Toyota’s hybrid model is very popular in the USA. On May 27^th, Toyota announced to build a third battery plant in Japan for its hybrid vehicles. News came out that Toyota is talking with GM to produce Prius hybrid at the Toyota GM joint venture plant in California. However, Toyota spokesperson said that nothing had been decided on production of Prius at the joint venture New United Motor Manufacturing Inc. Bloomberg reports:

The price of gasoline has jumped 30 percent in the U.S. so far this year, prompting demand for small cars. Toyota and Nissan increased sales in the world's largest car market last month, winning customers from General Motors Corp. and Ford Motor Co. Japan's vehicle exports to the U.S. jumped 21 percent.

``Rising gasoline prices are certainly helping the Japanese carmakers the most,'' said Jesse Toprak, director of market forecasting for Edmunds.com in Santa Monica, California. ``The Japanese brands are perceived to have more gas-efficient vehicles.''

Sales of the domestic cars in the USA is at the lowest since 1995. Japanese companies are making profits from their small vehicles. Toyota increased its domestic output 1.1% to 331,100 vehicles. Exports rose 8% and shipment to China rose 77%. Production of Nissan Motor Company increased 42% to 98,873 vehicles and export to the USA increased 64%.

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Ford, GM, Chrysler are losing market to Honda and Toyota

Honda Motor Company (TYO: 7267) is trying to make a turn around with its hybrid models and this means more loss of market shares for American automakers especially, the famous ‘Detroit Three.’ In 2009, Honda Motor Company is planning to release hybrid models that will cost only$1900 (€1,206). Honda is also planning to bring out the hybrid version of its popular Fit subcompact vehicle. Jesse Toprak, chief industry analyst, Edmunds.com referred Honda’s strategy as a ‘game-changer for the short term’. Currently, Honda has the most fuel-efficient car models in the USA market. The company will sell its new hybrid only cars in USA, Japan, and Europe from next year but it has not determined anything about the Fit subcompact hybrid. International Herald Tribune reports:

In addition to the new model and the Fit, Honda will introduce several other hybrids: a Civic and a new sporty model based on the CR-Z, Fukui said.

Fukui refused to give the price for the new hybrid-only vehicle.

But he said the difference between hybrids and their comparable standard models should be kept within 200,000 yen ($1,900, €1,206), although such price gaps can now reach as much as 500,000 yen ($4,800, €3,047).

"The 200,000 yen difference is a must," Fukui said.

Hybrids deliver a cleaner, more efficient ride by switching between a gas engine and an electric motor at different speeds, and by recycling the energy the car produces as it moves.

Honda aims at selling 200,000 ‘entry-level’ hybrid cars every year. To make the cars cheaper, the company has introduced a new electronic control unit and thinner and more compact battery. It is also developing a thinner motor.

North American car companies are good at making big vehicles like trucks and SUVs. With the rising cost of fuel American people are shifting towards smaller fuel-efficient cars.

Michael Robinet, vice president, Global Forecast Services for CSM Worldwide, an auto industry consulting company in Northville, says that GM and Ford could rely on their European and Asian operations for small car expertise. Chrysler has joined with Nissan to release small cars by 2010. GM is focusing on its larger hybrid vehicles and plug-in car Chevrolet Volt which will be released in 2010. Ford is planning to release midsize hybrids next year.

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GM Daewoo Playing Big Role in GM’s Global Growth

General Motors, the largest auto-maker in the world, saw a 3 percent increase in its global sales last year because of excellent sales growth in all parts of the world, except North America. Behind this enormous success of GM, GM Daewoo has contributed a low. In fact, GM Daewoo’s Chevrolet brand is now the best selling GM marque across the world. GM bought the controlling share of the Korea based auto maker Daewoo five years ago. Since then, GM Daewoo played a big role behind the global growth of GM.

GM Daewoo’s global sales have grown to more than 1.3 million, which were 310,000 in 2003. Moreover, revenue of GM Daewoo’s revenue has also been boost up with $15 billion last year compared to $4 billion in 2003.

Enquirer reported:

And the plan is for more growth as quickly as possible: to vehicle sales exceeding 2 million, revenue of $20 billion and $1 billion in annual profit, GM Daewoo President and Chief Executive Michael Grimaldi said.

“We are playing a very important role in GM’s global growth,” Grimaldi said.

GM-Daewoo cars have a strong presence in the emerging markets like China, India, Russia and Brazil. Chevroelt brand has now become synonymous of General Motors. So, GM should give more focus on GM Daewoo and its market leader Chevrolet brand of cars. GM is facing strong challenges in the North American market. So, GM bosses can initiate some plans for this market with Chevrolet brand cars.

General Motors Faces $ 3.3 Billion First Quarter Loses

In my earlier article, I wrote about General Motors’s 24 percent sales increase in Indian market in the month of April. If that is the ray of hope for General Motors bosses, then GM’s first quarter loss of 3.3 billion dollars due to US sales being gone down has become a serious cause of concern for the company.

You know that US economy is going through a recession period and it has affected the US auto market. So, almost all the automakers are struggling in the US market. However, the good news for GM is that the amount loss they faced in the first quarter was far less than what analysts expected. GM projected total revenue of 42.7 billion dollars, a slight fall from 43.4 billion. GM has also decided to cut back its pickup truck production and sport vehicle due less demand in the US market because of price hike of gasoline. However, the car maker maintains its excellent growth in other continental regions including Europe, Asia pacific, Africa and Middle East.

AFP reported:

"The results may not be immediately comparable to the more sizeable loss analysts were expecting, but are still attracting attention" from investors, Briefing.com analysts wrote in a client note.

The struggling automaker said it had combined earnings before taxes of one billion dollars in GM Latin America, Africa and Middle East (GMLAAM), GM Asia Pacific (GMAP) and GM Europe (GME), which more than offset a loss at GM North America.

"We continue to leverage our global product portfolio to take advantage of tremendous growth in key emerging markets, while at the same time taking the appropriate actions to deal with the challenging economic conditions in the US," said GM chairman and chief executive Rick Wagoner.

General Motors is now facing a strong challenge from Japanese car maker Toyota. In fact, in the first quarter GM fell behind Toyota. So, even though GM has a strong presence in the other parts of the world, GM must improve its sales in the US market if the auto giant wants to hold on the top position in the automobile market.

General Motors India Sees 24 Percent Increase in April Sales

General Motors India experienced a 24.34 per cent increase in its sales in India during April this season. GM India sold 5,563 units in April this year, compared to 4,474 units of the same month last year. The world’s largest automaker is now planning to increase its sales points from 117 to 125 by the end of this year. In this huge volume of sales, GM India has seen MUV Chevrolet Tavera being sold highest 1,863 units.

Economic Times reported:

The sales comprised 1,863 units of MUV Chevrolet Tavera, 1,055 units of sedan and hatchback Chevrolet Aveo and Aveo U-VA, 393 units of the luxury sedan Chevrolet Optra, 1,963 units of its small car Chevrolet Spark and 289 units of Chevrolet Captiva, GM said in a statement.

Indian car market is growing rapidly and there are some local competitors as well like TATA, besides the global players. So, there is a stiff competition among the car manufacturers in Indian. All the companies are aiming to grab more market share in this emerging market. It is definitely an excellent prospect made by General Motors last month. Now, let us see if GM continues similar success in the coming months.

GM Faces $US3.3 billion Lose in the First Quarter of Current Year

US based auto maker General Motors has seen a loss of $US3.3 billion, which is much less than the amount analysts expected in the first quarter of this year. Thanks to the companies booming business in Asia, Europe and Latin America, GM could make up its disastrous US sales. American economy is now going through a rough patch and the other automakers are also facing tough time in American market. However, the good news for GM is that the company gained 12 percent stock on Wall Street.

Sydney Morning Herald reported:

The automaker boosted profits by at least twofold in each of its other three regions. GM's European profit grew by more than 18 times to $US75 million ($A80.47 million), Bloomberg financial news service reported.

The Asia-Pacific region doubled earnings to $US286 million ($A306.87 million) on the strength of South Korean-designed Chevrolet small cars. The Latin America-Africa-Middle East region also doubled, to $US517 million ($A554.72 million).

GM is the world’s largest automaker, but in the first quarter of current year, GM fell behind Japanese automaker Toyota, which shows the US automaker would face a strong challenge from the Japanese automaker in the coming months to hold on leading position in the automobile market.

Toyota vs GM: Who is the Largest Auto Maker?

In the world car market there is intense rivalry between Toyota and General Motors. A General Motor is an American company a Toyota is a Japanese company. For the last few years, General motors produced the largest number of cars but Toyota was not for behind. A few month ago Toyota over took GM as the largest company in the manufactures of cars. Now it seems that GM is again getting back its position as world largest automaker.

Reuters reported:

General Motors Corp (GM.N: Quote, Profile, Research) appears to have inched past Toyota Motor Corp (7203.T: Quote, Profile, Research) in global sales so far this year as U.S. sales at the Japanese carmaker slipped last quarter, but some counts may leave Toyota in pole position.

Toyota, the world's most valuable automaker worth $190 billion -- or nine times as much as GM -- said on Monday its consolidated global sales grew 7 percent in January-September to 7.05 million vehicles.

That was a shade short of GM's 7.06 million vehicles, which marked a 2 percent rise for the same period.

This fighting will continue for some time to come. However, there is one important thing that you should all remember about the rivalry of GM and Toyota. GM may be a big company but it is giving a lot of loss. On the other hand Toyota is getting a lot of profit form its car sales. It shows that the future of auto industry is brighter in Asia than in USA. GM is still largely based in USA and you know that USA is a very expensive for manufacturing. On the other hand, Toyota could spread its business globally very well and it has many factories in different Asian countries where it can make the best use of cheap labor.

New Saturn Astra And Pontiac G8 Passenger Cars from General Motors

General Motors may be under pressure form different sides but it is going to introduce some cool cars in 2007 Chicago Auto Show. General Motors is now the largest auto maker but it is under serious threat from Toyota in terms of global market share. I think that the introduction of these cars will help GM to boost its sales.

Huliq.com wrote:

General Motors will introduce the all-new 2008 Saturn Astra and 2008 Pontiac G8 at the Chicago Auto Show next week, building on the momentum of the North American International Auto Show in Detroit – where the Saturn Aura captured the North American Car of the Year award and the Chevrolet Silverado claimed the North American Truck of the Year award.

Saturn continues its product revitalization with the new Astra compact car, along with the 2008 Vue Red Line and Vue Green Line hybrid. The Astra marks the fifth all-new vehicle in Saturn’s lineup, and is the last step in a complete reinvention of the brand’s showroom in less than 20 months.

The G8 sedan represents Pontiac 's continuing commitment to rear-wheel-drive performance, and adds to the G6 GXP and Torrent GXP recently introduced in Detroit. Additionally, a pair of special-edition Chevrolet Corvettes will debut.

The Chicago Auto Show is open to the public Feb. 9-18 at McCormick Place.

So, you will have to wait just few days to see the new cars from General Motors.

Counterfeit and Pirated Auto Parts: $1 Billion Loss for Ford?

Ford officials have been extremely vocal against counterfeit and pirated auto parts and they have every right to do so. It seems that fake auto parts is depriving the company $1 billion. It is a very bad news to digest. The worst part is that the trade of counterfeit auto parts is increasing at a very rapid face. If this trend continues then sooner or later, fake products will outnumber the real auto parts from real companies.

CBC News reported:

Ford has dispatched undercover investigators to seek out counterfeit and pirated auto parts, a problem that is putting the public's safety at risk and costing about $1 billion US annually, according to the automaker.

"[The cost] doesn't include the health and safety ramifications of fake or faulty items such as auto glass, brakes, tires, suspension and coupling mechanisms, and even seatbelts. Driver safety is simply not quantifiable," Joe Wiegand, Ford's global brand protection manager, says in a study released by the U.S. Chamber of Commerce and the Coalition Against Counterfeiting and Piracy.

Wiegand says a full-time staff has been hired to track fake auto parts within the U.S. The company has also hired independent agencies to investigate outside the country.

Yes, the loss of Ford is too much and this should stop. However, Ford is not the only company suffering from this problem. GM is suffering too.

The Detroit News reported:

General Motors Corp. dedicates significant resources to the problem around the world, but hasn't put a dollar amount on it.

"The counterfeiters are criminals. They don't file financial reports with us," spokesman Tom Henderson said Friday. "It's kind of hard to get an accurate number on this. We know it's significant."

GM has seized more than $250 million in counterfeit auto parts in the past two decades, shutting down hundreds of counterfeiting operations.

Piracy is a major issue in international business. It will take time and determined effort from many governments to put an end to piracy. On the other hand, major companies like Ford and GM should come up with initiatives to make people conscious about health and safety hazards of using counterfeit auto parts.

Who Will buy Daewoo Automobile?

These are not good days for Daewoo Automobile in Romania. The company is struggling to keep its existence. A lot of jobs are at stake. Now, a number of companies are interested to buy the company. GM and Ford both are seriously contemplating on the idea of buying Daewoo Automobile in Romania.

MSN reported:

General Motors and Ford Motor, as well as Chery of China and Tata of India, have submitted letters of intent to buy Romania's troubled Daewoo Automobile, which the country bought back from the bankrupt Korean group last year.

Romania's privatisation authority hopes to select a buyer by June.

Teodor Atanasiu, head of Romania's privatisation Avas, said the buyer would have to guarantee a minimum annual output of 300,000 units. The plant, located in Craiova, about 200km west of Bucharest, employs 4,000 people and has capacity to build 200,000 cars and 300,000 engines a year.

Let us hope for the best. The last thing that Romanian economy needs at this point of time is job losses of so many auto workers.

General Motors Canada Awarded for Contribution to Environment

Car companies are often in the wrong side of environmental protection. So, it sounds very sweet when we can see that any auto company is awarded for its contribution towards the environment. General Motors Canada has just got a prestigious award for its role in saving the environment.

durhamregion.com reported:

Given by the Canadian Automobile Association (CAA), the Pyramid Award of Recognition acknowledges the contribution that dismantling older vehicles and recycling their parts has on the environment.

"The Car Heaven program encourages motorists to contribute to a clean environment by donating their old vehicle. Motorists also receive the benefit of the incentive to purchase a more fuel-efficient vehicle. It's a win-win situation," says Sophie Gagnon, director of public and government relations for the CAA.

Since coming onboard in May 2005, GM has offered a $1,000 incentive for eligible donors towards a new GM vehicle. More than 12,000 vehicles were retired in 2006. The emissions of their vehicles are equal to the emissions from more than 230,000 new vehicles.

This is a good initiative from GM. I wish that GM gradually spreads this program to all the countries on earth. Other auto makers should learn from GM and commit more on the environment.