Car Makers Agreed to Increase Wages by 10% in South Africa

In an attempt to end an eight-day strike of the workers, car makers like General Motors and Toyota have agreed to raise wages by 10% in 2010. Wages will be further raised by 9% in 2011 and 2012.

The decision of a double digit pay rise has been revealed in a statement released by the Automobile Manufacturers Employers Organization. It has also measured an estimated production loss of 1700 vehicles caused by the strike.

Chris Thexton, the chairman of the employers’ Organization, is naturally not happy with such loss and he has reacted very strongly. He said to the media, “It’s become a trend, not necessarily a good one from an economic point of view, for settlements in the double-digit region, and that’s way above inflation. There’s a high premium in this contract. It allows for the industry to get back up and running.”

National Union of Metalworkers of South Africa (also known as Numsa) has stated in a statement that the workers would resume works on 23 August. Numsa decided to go on strike on 11 August calling for a 15% pay rise, while the employers were offering just 7% increase.

There is a new laptop and gadget blog in our network where you can get news on laptops and other gadgets.

GM: Senior adviser to Chairman to get Million Dollar Salary

Steve Girsky is the man who is under a lot of discussion right now because of his salary. He was a director at General Motors and now, he’s going to act as senior adviser to chairman and CEO Edward Whitacre.

Reuters reported:

Whitacre, who had no auto industry background before joining GM, has said he is relying heavily on Girsky's guidance as he pushes a new management team toward a goal of returning GM to profitability as soon as this year.

GM, which emerged from bankruptcy in July more than 60 percent held by the U.S. Treasury, said its board of directors approved the terms of Girsky's consulting agreement on Tuesday and he will be paid retroactive to Dec. 1.

He used to get 200,000 in his old position and now he is going go get another 900,000 per year. It is a lot of money but giving advice in companies like GM is not an easy matter either. 

General Motors Trying to Keep Consumer Confidence Intact in Asia

General Motors (GM) might be facing a tough time in domestic US car market, but the company is running very well in Asia, especially in China. Now, the automaker is trying hard to ensure that its Asian operations remain unaffected by the company’s bankruptcy threat in America.

GM might be doing well, but there is a probability that the company might lose consumer confidence in Asian markets like China because of its tumultuous condition in the US. That is what GM is now very much concerned with. GM China is now trying to differentiate the company from its patent company, by stating that GM China is nothing but a joint venture involving Detroit auto maker and Shanghai Automotive Industrial Corp in which both the companies have 50 percent shares each.

Related article:

The Wall Street Journal

Japan's Nikkei Upbeat on Decision on US Auto Makers

At last, perhaps there is some good news for Japanese economy. Right now, there is a lot of uncertainty over to the major U.S. automakers like General Motors and this is not good for the world economy. Japanese investors in major markets are now hoping that a decision about the U.S. automakers and will be found very soon and that will put an end to the ongoing uncertainty. Not only that, I also feel that if U.S. automakers are in bad condition and even become bankrupt then there will be a problem in the car industry in the whole world and Japanese automakers like Toyota and Honda can do something to fill the vacuum and increase their market share.

Guardian wrote:

Japan's Nikkei average rose 3 percent on Wednesday, with carmakers such as Honda Motor Co climbing on relief that a decision on struggling U.S. automakers could be near, prompting bargain hunting. Sony Corp and other exporters gained on a brief bounce in the dollar after the Bank of Japan's tankan survey of business sentiment showed confidence tumbling at its fastest pace on record, while tech shares rose in the wake of gains by their U.S. peers.

In fact, there is a lot of uncertainty around the market at this moment not only in Japan but also in the rest of the world.

GM’s failure evokes fear of “the 80s Japan bashing” among Toyota executives

Till now, GM has been the major competitor of Toyota Motors in USA. Now that GM is in bad shape, Toyota should be happy but Toyota executives are afraid that the failure of GM, Chrysler and Ford would rejuvenate Japan bashing that took place in the 80s. Today, Toyota officials said that they wish GM to recover from its losses.

Poor consumer expenditure hurt American auto industry. Yasushiko Ichihashi, Senior Managing Director, Toyota Motor Corporation said that his company does not see GM’s failure as an opportunity. He wished American market would return to health soon. Toyota hopes for an overall recovery of the US auto-market. US automarket is the biggest market of Toyota Motor Corporation. If GM fails today, Toyota might fail tomorrow. Because of the economic recession in USA, Toyota Motor posted its first annual loss since 1950 in the current fiscal year. In March, the condition of auto sales improved a bit. Americans bought 857,735 vehicles in Mach, a 25% rise compared to February. Ichihashi said that the number shows that there is still hope for recovery.

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Bloomberg

AP

End of the Road for General Motors!

It’s a very sad news and just pray that it does not come true because if General Motors gets close down then surely it will become a shock not only just for the U.S. economy but for economies of many countries. Auditors if the company has raised serious doubt whether the company can survive in the long run and they’re not hopeful that the company can continue to operate for a long time.

 

CNN wrote:

General Motors Corp.'s (GM) auditors cast doubt Thursday on the auto maker's ability to survive without more U.S. government loans in a foreboding confirmation of its financial plight.

GM's continuing losses, negative net worth and an inability to generate cash for continued operations across its global operations led auditors to determine there is substantial doubt that it can remain a going concern.

The warning was contained in GM's delayed 10K filing with the Securities and Exchange Commission, and the statement forced GM to seek waivers from lenders.

 

If you think that the fish use of a rival companies like Toyota are now in a celebratory mood then you are wrong because Toyota is also suffering a lot. 

Toyota and General Motors struggle to bring out the first electric car

Planet earth is at stake and the auto-makers need to do something to save the world (and win the consumers!?). So the would be biggest auto-maker of the world and the current-biggest auto-maker come toe to toe in a fight to build the first green car. Toyota and General Motors are struggling to build world’s first environment friendly car. Toyota is rallying with “gas-electric hybrid” and GM with “plug in” electric vehicles. Canada.com reports:

Watanabe announced that Toyota will market a test fleet of rechargeable hybrid vehicles to companies or government agencies by the end of 2010.

The comments were the clearest statement yet from the top Japanese automaker of its commitment to plug-in vehicle technology and amounted to a direct challenge to GM, which won widespread attention at the auto show last year, when it announced plans to build its own rechargeable vehicle, the Volt.

Gas-electric hybrid is a combination of electric power and traditional combustion engine power. Plug in on the contrary, is like a car with a battery that needs to be charged from time to time. The plug ins go short distance. The Volt by GM will run 40 miles on battery power with a back up gasoline engine installed. Troy Clarke, Head of GM’s North American operations, told reporters that his company had been planning to launch a plug in version of its Saturn Vue which might come out before the Volt. The new version will run 10 miles on battery power.

On the other hand, Toyota is going on with the plan to set up a new facility for producing next-generation lithium-ion batteries for electric vehicles.

Now, the million dollar question is, whose going to be the best car? Well, we all have to hold our breath till 2010.

Related article:

Canada.com

Toyota : Reaching towards sky with passenger jet career

After winning the roads, now it’s time to win the sky. Last wedenesday, Japan’s world famous auto-maker, Toyota Company, declared to invest 10 billion yen ($96 million) in Mitsubishi Aircraft Corporation, a unit of Mitsubishi Heavy Industries. The company will produce Japan’s first passenger carrying, fuel efficient jet planes. The latest press release from Toyota stated that it accepted an increased share of 10 billion yen planned by Mitsubishi Aircraft Crop. through a third party allocation. AFP reports:

Mitsubishi Aircraft is initially capitalised at three billion yen. But the capital is scheduled to be eventually raised to 100 billion yen with Mitsubishi Heavy sharing two thirds.

When Mitsubishi Heavy announced the project on March 28, it said it hoped to secure financial support to cover the remainder from Japanese companies including Toyota, Mitsubishi Corp., Mitsui & Co. Ltd. and Sumitomo Corp., along with the government-controlled Development Bank of Japan.

The Nikkei newspaper reported Wednesday that Mitsubishi Aircraft will increase its shares by 67 billion yen -- 6,700 shares worth 10 million yen each -- through a third-party allocation on May 30.

The fuel efficient jet planes will go into action from 2013. Mitsubishi Aircraft Corp. started the production after receiving order of 25 jet planes from All Nippon Airways,Japan’s largest domestic airlines. Mitsubishi Aircraft Corp. will mainly compete with Canadian aircraft manufacturer, Bombardier Aerospace and Brazillian Company, Embraer.

Related article:

AFP

General Motors and Ford to Suffer Share Drop

The automotive sector of US will go through a rough patch in 2008 as the auto makers are facing high gasoline prices and the tightness in the credit market. Morgan Stanley 2008 U.S. industry forecast shows that GM and Ford will experience loss this year. General Motors is also facing strike of major suppliers. So, it is almost certain that Auto makers would have a tough time this year.

Guardian reported:

"Our industry view is based on expectations of lukewarm retail demand, weak mix, high raw material prices offset by growing strength in international markets and some progress toward attacking structural issues including overcapacity and legacy costs," Morgan Stanley said in a note to clients.

So, the shares of the companies will also be dropped significantly this year. GM would see 7.6 percent drop, while Ford will experience 8.07 percent drop this year. US economy is in recession which is affecting the automotive market of the country. Now, let us see how the companies like GM and Ford cope up with the situation and go on with their business activities.

General Motors Planning to Sell a Plant to Oklahoma County

General Motors is selling an old plant to Oklahoma County. The 3.8 million-square-foot plant would be used by the Tinker Air Force Base. General Motors stopped its production in the plant due to decreasing sales and rising production cost. The money of the $55 million deal would be generated from bond measure. Ray Vaughn, the commissioner of Oklahoma Country said that Tinker is very important for the state as 27,000 Oklahomans from 48 different counties travel and work on base.

Chron reported:

"Tinker is so important to our entire state, with more than 27,000 Oklahomans from 48 different counties commuting and working on base," County Commissioner Ray Vaughn, who has been working on the project for more than a year, said Tuesday. "The General Motors facility served as the worksite for thousands of Oklahomans over the years and everyone involved is anxious to see Oklahomans back in this facility, helping to grow our economy."

The county would lease the property and facilities to Tinker in a "low-cost, long-term lease agreement," Vaughn said.

General Motors is one of the global auto makers widely known across the world. However, they are currently going though a slump condition in the industry with decreased sales. The plant was not active for about two years in the county. So, it seems to a realistic decision of General Motors to sell the plant.

General Motors Introducing Environment Friendly Technologies Looking for Better Times in the Industry

General Motors is hoping to get over the hard times they are currently going though by the third or fourth quarter of the year. In their pursuit to increase their sales, General Motors is offering different technologies asserted in their vehicles. The company’s North America region president, Troy A. Clarke, expressed his hope regarding the future of GM in the coming quarters of the year focusing on the technologies his company is offering.

The technology GM is offering now includes E85 ethanol. The cars which run on E85 ethanol incorporate 85 percent ethanol and 15 percent gasoline, thus making the vehicles environment friendly.

AJC.com reported:

E85 is a fuel that blends 85 percent ethanol and 15 percent gasoline. It has been praised for cutting oil consumption and burning cleaner than gasoline.

It also has been criticized for driving up food prices, because much of it in this country is made from corn, demand for which has risen as more E85 production comes online.

E85 has also been criticized for its lack of availability in most of the country. Clarke says GM wants to address that problem but needs help.

Yes, these are the problems of E85 ethanol technology which, Mr. Clarke said, GM wanted to get over but they needed the help from government. Moreover, GM has some more technologies in their list including gas-electric hybrids car. Even the fuel-run vehicles of General Motors have improved gas mileage. Clarke expressed that GM wanted to sell what people wanted, not what they wanted.

GM is now facing some problems created by auto parts suppliers’ strike. However, GM Chief Executive Richard Wagoner did not admit that it was being affected heavily on the global sales of the company as the company dealers had enough vehicles in their lots. However, the reality is that due the striker many plants of the company have been shutdown. So, though General Motors will not understand the affect of it now, it will have an impact in the long run. I think, General Motors bosses should come to a compromise with the suppliers in order ensure a flawless production in the industry.

General Motors Conducting “CHEVROLET GOLDEN VOICE OF MYSORE”

You know that Chevrolet is the widely known brand of General Motors. Now, Chevrolet along with Hoomale Creations is conducting a talent hunt competition in Mysore in order to find out the talented singers. The competition is being held in two age based categories. In the senior category, the participants must be in between 15 and 30 years of age and junior category includes those who are10-15 years old.

Starofmysore reported:

About 2,600 contestants are already participating in the competition and the entries are still open. The finals of the event will be held at Kalamandira on Apr. 20.

Vinod Kumar, Sales Manager of Chevrolet said, “General Motors, World's No. 1 carmaker, is into a lot of social activities in India and around the world. In Mysore, Chevrolet is kicking off with this programme and in future, there will be plenty."

The local officials of Chevrolet are organizing the competition. So far, they have received enough responses as about 2,600 participants have already signed for the competition. The final of the competition will take place on 20 April. Hoomale Creations is a group of talented youngsters and they have already released an album. Now, they are planning to make their second album in which the winners of the competition will feature in the album.

Toyota vs GM: Toyota Becomes Number One?

Toyota and GM are always in a fierce competition to be the top car producer in the world. GM had a slight edge Toyota until now but it seems that Toyota is becoming the top car producer.

Yomiuri Shimbun wrote:

Toyota Motor Corp. overtook General Motors Corp. of the United States to become the world's biggest automaker in terms of units produced after GM announced its production figures for 2007 on Friday.

Toyota manufactured 9,497,754 units across the world in 2007--the figure includes vehicles made by subsidiaries such as Daihatsu Motor Co. and Hino Motors Ltd.--up 5.3 percent on the previous year.

In its announcement, which came early Saturday Japan time, GM said it produced 9,285,000 units last year--up 1.1 percent on 2006.

Bad news for General Motors. GM officials have to regain their top position. Well, I feel that the future of auto industry is in Asia. Millions of families in Asia still do not have a car.

10 Millions Cars: A Dream from Toyota Motor Corp.

Toyota Motor Corp. is the second largest auto maker in the world. Toyota bosses now have just one dream- to overtake General Motors (GM) as the number one auto maker in the global market. To fulfill this dream, Toyota is trying to increase its production world wide. Now, there is strong media speculation that from next year, Toyota is Toyota Motor Corp. is going to produce more than 10 million cars.

IHT reported:

The Nikkei article said Toyota Motor Corp. has told its suppliers it is aiming in 2008 to produce 10.4 million vehicles, or about a million more than its global production last year.

Toyota spokesman Paul Nolasco and Daisuke Kondo, spokesman for Aisin Seiki Co., a major supplier, declined comment.

Toyota's sales are booming with the popularity of its fuel-efficient vehicles, such as the Prius hybrid, and on surging demand in North America and China.

Toyota beat GM in global vehicle sales for the first half of this year, selling 4.72 million vehicle to GM's 4.67 million.

So, it can be seen that Toyota officials have enough reasons to be hopeful about overtaking GM as the market leader. Of course, I would not them to be too much obsessed with this idea. Instead, they should think of the long term future.

General Motors Performed Well in Latin America, Africa and Middle East in 2006

General Motors may be not doing so well in some parts of the world but it is doing great in some other parts. For example, in 2006, General Motors did very well in Latin America, Africa and Middle East.

Forbes reported:

General Motors Corp said it sold a record number of cars and trucks in its Latin America, Africa and Middle East (LAAM) region last year and raised its market share.

The company said it sold a record 1.04 mln vehicles in the region, a 17.4 pct increase over the year earlier, and raised its market share in the region to 17.0 pct -- it's highest in sixteen years -- on the strength of its global brands, especially Chevrolet, which significantly outpaced industry growth in almost every market in the region.

It was a great year for GM in this region and 2007 may become a good year too.

Bad News for General Motors in Australia

General Motors Holden (GMH) is the Australian Unit of General Motors and it seems that there is some bad news for the company. It has not performed in a good way in terms of exporting cars from this Australian unit.

Forbes reported:

General Motors Corp's Australian unit, General Motors Holden (GMH), said its total export sales in 2006 fell 24 pct to 46,074 vehicles, from a record 60,518 in 2005.

It said the fall reflected the end of the Pontiac GTO export program to the US in June last year and a one-off sales program to China and South Korea in 2005 which boosted that year's export total by 7,854 cars.

Vehicles manufactured by GM Holden were sold overseas in 2006 under the GM brands of Chevrolet in Brazil, the Middle East, and South Africa, and under the Pontiac brand in the US, and Holden in New Zealand.

General Motors should take this matter seriously and try to find out the causes behind falling export from the Australian unit. If needed it should arrange some support for the Australian Unit so that things can become better again.

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.