What if Ford and General Motors merged? The result would be a global automotive machine so inconceivably huge rivals like Toyota and Volkswagen might not even think of challenging it. And it would be awash with cash, and profits, cutting tremendous expenses at both automaker from research and development all the way to accounting. At least this was the plan proposed by General Motors CEO Rick Wagoner in a private meeting with Ford executives in the summer of 2008.

This shocking revelation is the latest to come from New York Times auto writer Bill Vlasic, in an except from his new book ‘Once Upon a Car: The Fall and Resurrection of America’s Big Three Automakers — G.M., Ford and Chrysler’, set to be published tomorrow.

Seeing it for the desperate move it was with GM out of cash and burning through one billion dollars a month, Ford Chairman Bill Ford and Chief Executive Alan Mulally flatly rejected Wagoner’s appeal. Later on, Wagoner even admitted he understood why.  “But sitting in their shoes, I could understand why they didn’t want to do it,” he said.

The rest, they say, is history, with GM filing bankrupcty protection papers and then emerging from the complex process having slashed $48 billion in debt and obligations, able to once again generate a profit without looming debt payments eating up all its cash.

Yet as shocking as this news is, implications from the book may have more lasting effects. “There was something missing among Mr. Wagoner, Mr. Lutz and Mr. Henderson [CFO], some chemistry or cover-my-back mentality,” writes Vlasic, undermining the leadership at GM, which has been brought into question before. “They worked together, but not ‘together,’ as the Ford guys did.”

Published by William Morrow ”Once Upon a Car: The Fall and Resurrection of America’s Big Three Automakers — G.M., Ford and Chrysler’ is on sale October 4th.

[Source: NYT]

Frederick “Fritz” Henderson has resigned as General Motors chief executive officer.

Henderson (left, in the photo above) was appointed CEO on March 29, replacing Rick Waggoner who shown the door by the Obama administration. Over the last eight months, Henderson worked at reorganizing the company. GM announced that Chairman Ed Whitacre Jr. (right, in the photo) will take over as interim CEO until a permanent replacement is found.

“Fritz has done a remarkable job in leading the company through an unprecedented period of challenge and change,” said Whitacre. “While momentum has been building over the past several months, all involved agree that changes needed to be made. To this end, I have taken over the role of Chairman and CEO while an international search for a new president and CEO begins immediately. With these new duties, I will begin working in the Renaissance Center headquarters on a daily basis. The leadership team – many who are with me today – are united and committed to the task at hand.”

During Henderson’s tenure, GM filed for Chapter 11 protection and, 40 days later, emerged from protection with help from the government. On Nov. 16, Henderson announced GM would begin paying back the government’s $6.7 billion loan.

As part of the company’s recovery efforts, GM scaled back to four key brands: Chevrolet, Cadillac, Buick and GMC. Pontiac is shutting down and GM found a Chinese buyer for Hummer. GM also came close to finding new owners for Saturn and Saab. A deal with Roger Penske for Saturn fell apart, while a deal for Saab with Koenigsegg also fell through. GM also announced today it has “has received expressions of interest in Saab” and will evaluate potential bids before the end of December.

[Source: MSNBC and Associated Press]

Swedish supercar maker Koenigsegg has canceled its plans to buy the struggling Saab brand from General Motors, leaving the future of the brand in jeopardy.

“We’re obviously very disappointed with the decision to pull out of the Saab purchase,” said GM President and CEO, Fritz Henderson.  “Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.”

The news isn’t entirely surprising and has so far been par for the course after GM’s decision to sell its Saturn brand to the Penske Automotive Group fell through a few months back. And just a few weeks ago GM reneged on its plan to sell its European Opel brand to a group headed by Canadian autoparts maker Magna International Inc. GM is in the process of closing its Pontiac brand and is still working to sell-off the Hummer brand to Chinese heavy industry company Sichuan Tengzhong – although it wouldn’t be a surprise to see that deal now fall through.

The move to sell off the brands was part of GM’s larger restructuring plan, arranged as a part of the company’s bailout by the U.S. and Canadian governments.

It is not clear if GM intends to find another buyer for Saab, to keep the brand, or to shut it down. The situation is certain to delay the launch of the all-new 9-5 model.

[Source: Automotive News]

In a surprising move, General Motors has announced that it will begin to pay back $6.7 billion in loans to the U.S. and Canadian governments, starting as early as December. GM wasn’t required (or expected) to begin paying back the loan until 2015.

The news comes as GM releases its third quarter results with a loss of $1.15 billion. That number isn’t good but is significantly less than the losses the automaker has been reporting as of late.

“It’s a lot better than what we had expected,” said company CEO Fritz Henderson in a conference call. “Nonetheless, it’s a loss, and you cannot be satisfied with it.”

Henderson also released a statement in which he said that, “We have significantly more work to do, but today’s results provide evidence of the solid foundation we’re building for the new GM.”

The news comes after General Motors announced its October sales, with the auto-giant posting its first sales gain in 21 months.

The repayment process will begin with a $1 billion payment to the U.S. treasury in December, with a $192 million payment to the Canadian government. The $6.7 billion loan, is however, a small portion of what GM borrowed from the U.S government, with $50 billion in total coming from the taxpayers. The majority of that amount was given in exchange for the Treasury’s 61 percent ownership of the automaker. The treasury has said it will begin selling shares in GM once the 6.7 billion loan is reduced to $3 billion.

“I’ve been asked since we went into the bankruptcy, probably a hundred times, ‘When are you going to start paying back the taxpayer?’ The answer,” said Henderson, “is now.”

[Source: Automotive News]

General Motors has decided to keep it’s European operations after all. GM has announced that due to the improved economy and improvements in the company’s bottom line, it will not sell off Opel and British automaker Vauxhall.

General Motors had been negotiating to sell the group to a Russian-backed group fronted by Canadian autoparts maker Magna International.

“GM’s overall financial health and stability have improved significantly over the past few months, giving us the confidence that the Euroean business can be successfully restructured,” said CEO Fritz Henderson.

GM’s initial plan is to begin a $4.43 billion restructuring effort and says it will work with European labor unions to make it happen. It is not clear if the European Union’s efforts to block the sale to the Canadian held Magna, over a Belgian group had anything to do with the decision. Initially the Magna deal was preferred by the German government as the Candian company agreed to keep most of Opel’s work force in Germany, in exchange for a secured loan. No doubt GM will still be looking for a similar sized loan now.

GM made the decision contrary to its viability plan that was agreed upon wit the U.S. government, stating that Opel is outperforming the assumptions made in that plan.

“This was deemed to be the most stable and least costly approach for securing Opel/Vauxhall’s long-term future,” said Henderson.

[Source: Automotive News]

In the latest chapter of the ongoing sage of corporate restructuring at General Motors, the company’s head of U.S. sales has announced his resignation. Mark La Neve, who became VP of sales and marketing in 2005, has said he will leave on October 15th. La Neve’s position has been in question since industry veteran Bob Lutz was appointed head of marketing when the company emerged from bankruptcy.

“Mark’s going to join another company to pursue an interest outside the auto industry,” said company CEO Fritz Henderson.

La Neve’s departure comes as GM continues to struggle during the worst economic climate in the past several decades. For the first nine months of 2009, GM’s sales have dropped 36 percent.

Henderson commented that the company may look externally for an outside replacement for La Neve.

[Source: Automotive News]

Penske’s deal to buy the Saturn arm of General Motors has reportedly fallen through. Back in June the Penske Automotive Group (PAG) had announced it would buy the brand from GM, along with its dealer network.

“This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality,” said CEO Fritz Henderson in a statement, commenting that the issue was that Penske Automotive Group could not solidify a deal with another automaker to supply vehicles after the contract with GM was scheduled to run out.

Many sources had pointed to Penske rebadging vehicles from French automaker Renault to sell in the U.S., but that appears to have not come to fruition.

GM has announced that it will close the remaining Saturn dealerships and that owners will be able to purchase (hahaha!) or have vehicles serviced at retailers until that point. Afterwards, owners will continue to be able to have their vehicles serviced at a GM facility.

[Source: Globe & Mail]

General Motors has just announced a deal that will see it’s European Opel brand sold off to Canadian autoparts supplier Magna International. The deal has yet to be finalized, but this morning GM announced Magna was the preferred bidder.

The sale will see Magna and Russian backer Sberbank take a 55 percent stake in both Opel and Vauxhall. Opel employees will get a 10 percent stake in the new company. GM will continue to hold on to a 35 percent stake in Opel.

“The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its Board of Directors to recommend Magna/Sberbank,” said Fritz Henderson, GM President and CEO. “We thank all parties involved in the intensive process of the last few months — especially the German government — for their continued support that enables this new venture. I’d also like to thank the Opel and Vauxhall customers for their continued loyalty. GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra,” Henderson added.

The deal will see continued cooperation by GM and Opel, allowing the two automakers to take advantage of economies of scale. The cooperation will also extend to projects like the Ampera (pictured above), a European version of the Chevy Volt.

Official release after the jump:

GM Board Recommendation to Sell Majority Stake in Opel/Vauxhall to Magna International/Sberbank

• GM to sell 55% stake in New Opel to Magna/Sberbank
• Agreement on new ownership structure signals fresh start for New Opel
• Employees to hold 10% stake in New Opel
• Government supports financing through additional state guarantees

Zurich. General Motors today announced that its Board of Directors supports a bid from the consortium of Magna International Inc. and Sberbank to buy a majority stake in its European Opel/Vauxhall operations.

Several key issues will be finalized over the next few weeks to secure the binding agreements, including the written support of the labor unions to support the deal with the necessary cost restructuring for viability and the finalization of a definitive financing package from the German government. The definitive agreements should be ready to sign within a few weeks, with closing to follow within the next few months. Under the deal, Magna/Sberbank will purchase a 55 percent stake in New Opel; GM will hold a 35 percent stake and employees will be provided a 10 percent stake.

“The hard work over the past two weeks to clarify open issues and resolve details in the German financial package brought GM and its Board of Directors to recommend Magna/Sberbank,” said Fritz Henderson, GM President and CEO. “We thank all parties involved in the intensive process of the last few months — especially the German government — for their continued support that enables this new venture. I’d also like to thank the Opel and Vauxhall customers for their continued loyalty. GM will continue to closely collaborate with Opel and Vauxhall to develop and produce more great cars, such as the new Insignia and the new Astra,” Henderson added.

The agreement will keep Opel/Vauxhall a fully integrated part of GM’s global product development organization, allowing all parties to benefit from the exchange of technology and engineering resources. The new ownership structure constitutes a new lean, efficient and independent organization for the Opel and Vauxhall brands. The current portfolio of Opel/Vauxhall cars and the models in the pipeline are a strong basis for future success.

Participating in GM’s global technology development and purchasing organizations secures important economies of scale for Opel/Vauxhall and other GM brands. For example, vehicles that represent new propulsion technologies, such as the Ampera extended-range electric vehicle, can only be brought to market in a joint effort.

“GM operates many joint ventures around the world and has proven in the past that this business model delivers the right balance of independence, innovation and synergies,” said John Smith, GM Group Vice President Business Development. “All parties will work hard to close the deal as soon as possible,” he added.

During GM’s product technology even held yesterday CEO Fritz Henderson confirmed that the automaker’s top-tier Cadillac brand will bring a new flagship sedan, as well as an entry-level sedan to market shortly.

The new high-end model will replace the DTS and is reportedly to be called the XTS. This full-sized luxury sedan will be based on the same platform as at the 2010 Buck LaCrosse and will be offered in both front-wheel drive and all-wheel drive configurations. The vehicle will reportedly use design cues from the Cadillac Sixteen Concept.

The most exciting news, however, comes from the lower-end of the luxury spectrum where Cadillac says it will build a new model to compete directly with the BMW 3 Series.

“We are determined to repeat what CTS has already achieved in design, quality, driving dynamics, performance and fuel economy to grow our presence in this high-volume and highly competitive segment,” said Henderson.

Unofficially known as the ATS, this new model will initially be offered only as a sedan in rear-wheel and all-wheel drive, but a coupe is likely if the sedan sells well.

Additionally, GM re-confirmed that the CTS Sport Wagon and new 2010 SRX will go on sale this month. The SRX will be offered with both a direct-injection 3.0-liter V6 as well as an optional turbocharged 2.8-liter V6.

Official release after the jump:

PRESS RELEASE

A New GM Kicks Into High Gear at Product and Technology Event

Download Photography
GM President and CEO Fritz Henderson to Provide Update on ‘New GM’
2010 General Motors Product Guide

* Chevrolet Volt estimated city fuel economy is 230 mpg / 25 kilowatt hours per 100 miles (press release)
* Media and consumers preview 25 new models coming between now and 2011
* Cadillac confirms new entry-level luxury sport sedan is under development
* GM’s four brands launch six all-new 2010 vehicles, including the industry’s most fuel-efficient compact crossover SUVs and all-new Buick LaCrosse sedan
* GM launches ‘The Lab’ to gather and incorporate direct consumer feedback to possible future vehicle designs
* GM Product and Technology Showcase – Remarks by Fritz Henderson

DETROIT, Mich. – A revitalized General Motors reintroduced itself today with an array of all-new cars, crossovers and trucks debuting now through 2011. GM also made a historic announcement: When the Chevrolet Volt extended-range electric vehicle rolls off the assembly line late next year, it will be the first mass-production automobile to achieve triple-digit fuel economy, with an expected 230 mpg in the city, or 25 kilowatt hours per 100 miles.

GM President and CEO Fritz Henderson also confirmed that Cadillac is developing an entry luxury sport sedan to capitalize on the growing market for smaller luxury sedans in the U.S. and globally. The rear- and optional all-wheel drive sedan will compete in the segment below the CTS, delivering outstanding performance and driving dynamics.

At GM’s Design Center and Milford Proving Ground, GM previewed six all-new 2010 vehicles and a glimpse of what is being introduced through the end of 2011:

* Chevrolet alone is introducing 10 new models, including the 2011 Chevrolet Volt
* Buick and GMC are adding 10 new entries, including a Buick plug-in hybrid compact crossover in 2011
* Cadillac is introducing five new models through 2011

Henderson also announced that as part of GM’s commitment to get closer to consumers, GM will use its FastLane blog to gather product research from both fans and critics. One pilot initiative, “The Lab,” will involve GM’s Advanced Design studio and allow users openly talk with designers about ideas and consumer-friendly technologies that were previously shared only in unbranded clinics.

In addition, Henderson said he and other executives plan to talk with consumers in other Web-based and in-person formats in the coming months. On Monday, the new GM executive committee, led by Henderson, showed off products and technologies to about 75 consumers at the GM Technical Center and the Milford Proving Ground.

“The key to restarting this company lies with GM’s customers, cars and culture,” Henderson said. “With four focused brands, we are committed to exceeding our current customers’ expectations and giving consumers plenty of reasons to choose a Chevy, Buick, GMC or Cadillac car or truck.”

Chevrolet Volt fuel economy achieves triple digits

Using development testing based on a draft U.S. Environmental Protection Agency (EPA) procedure for plug-in electric vehicles, the Chevrolet Volt is expected to achieve 230 miles per gallon or better in city driving (25 kW hours per 100 miles). The Volt, scheduled to begin production late next year as a 2011 model, can travel up to 40 miles on electricity from a single battery charge and can extend its overall range to more than 300 miles with its flex-fuel engine-generator.

The EPA test procedure for plug-in electric vehicles, which is still being finalized, assumes a single charge each day. According to U.S. Department of Transportation data (http://tinyurl.com/U-S-DOTStudy), nearly eight of 10 Americans commute fewer than 40 miles a day.

“From the data we’ve seen, most drivers could operate purely on grid electricity in a Chevy Volt,” Henderson said. “A car that gets more than 100 miles per gallon is a significant step in the reinvention of the auto industry and GM is and will continue to be a leader in that reinvention.”

Cadillac confirms entry luxury sedan

With the all-new SRX and CTS Sport Wagon coming to market this month, the brand plans to pursue an even bigger piece of the luxury sport sedan market. Cadillac is developing a sport sedan below the acclaimed CTS that will deliver on the price of entry in this highly competitive segment of the luxury market – driving dynamics. With high-tech engines, rear-wheel drive and optional all-wheel drive, the new sedan will take on the best in the segment.

“We are determined to repeat what CTS has already achieved in design, quality, driving dynamics, performance and fuel economy to grow our presence in this high-volume and highly competitive segment,” Henderson said.

Greater customer engagement

While GM has organized customer clinics and collected feedback for many years, the Web provides even greater opportunities to connect with consumers. Henderson said executives will use a combination of in-person meetings and online technology to better interact with them.

“Our customers are the reason we’re here. It’s critical to have their voices help shape our products, and their experience with them,” Henderson said. “Their feedback helps us learn and evolve so we can continuously improve our cars and trucks, and our customer relationships.”

In addition to “Tell Fritz,” a feature on www.gmreinvention.com, in which customers can provide feedback, GM will use its popular FastLane blog (fastlane.gmblogs.com) to launch “The Lab,” a microsite featuring future projects by GM’s Advanced Design team.

Interacting directly with designers, consumers can share input on designs and technologies being considered for future projects. Those who provide detailed demographic information may be invited to participate at a deeper level in future sessions.

2010 launch vehicles by Buick, Cadillac, Chevrolet and GMC

GM’s four core brands are launching six all-new vehicles for 2010. Here’s a brand-by-brand look at what’s new:

Buick: The all-new Buick LaCrosse continues a brand renaissance begun by the Enclave luxury crossover. The LaCrosse is a completely redesigned luxury sedan that offers a sculpted exterior and luxurious cabin; advanced, intelligent personal technologies and safety features; and a choice of two fuel-saving, direct injected V-6 engines. A 2.4L four-cylinder engine joins the lineup later.

Last week, Buick announced it will introduce a compact crossover SUV next year expected to achieve more than 30 mpg on the highway, followed in 2011 by a plug-in hybrid.

Cadillac: GM’s luxury brand launches the SRX crossover and the CTS Sport Wagon into the luxury market, featuring Cadillac’s signature design and technology.

The new SRX is designed to make more inroads into the previously conservative luxury crossover category. A new, 3.0L direct injected V-6 engine is standard, and a new, 2.8L turbocharged V-6 is optional. Both feature greater fuel economy and lower emissions.

The CTS Sport Wagon is a progressive take on the classic wagon body style that delivers significant functionality and fuel efficiency, including an estimated 28 mpg highway. Essentially the same size as the acclaimed CTS sport sedan on the outside, it nearly doubles the cargo carrying capacity, with 25 cubic feet (720 liters) of space behind the rear seats and 53.4 cubic feet (1,523 liters) with the rear seat folded.

Chevrolet: The new Chevrolet Camaro returns after a seven-year hiatus. Its combination of efficient performance, which delivers up to 29 mpg highway and heritage-inspired design exemplify Chevrolet’s commitment to great design and fuel-efficiency.

The all-new Chevrolet Equinox blends distinctive design and outstanding roominess with class-leading efficiency. Chevrolet expects nearly two-thirds of customers will choose the efficient 2.4L engine – standard on all models – that delivers best-in-class EPA-rated 32 mpg highway (FWD models).

GMC: The all-new GMC Terrain crossover SUV offers outstanding fuel economy along with the capability, engineering excellence and refinement that have defined GMC for more than a century. Like other GMC vehicles, the Terrain’s design is characterized by elements that suggest muscularity, with a prominent front end and squared-off edges.

If you’re a car junkie, Twitter is the place to be today. Ahead of a webcast tomorrow morning by GM CEO Fritz Henderson, the General arranged for a select few media to meet with its PR folks and get a preview of what the New GM has to offer.

Many of those folks have been tweeting on Twitter and so we have a good idea of what’s going on. In a press release from earlier today, GM said that Fritz will unveil a new model during the webcast. The only problem is, the tweets cover so many new models that we don’t know which one it will be.

Some of the biggest stories of the day include a new Cadillac model named the ATS, which is aimed at taking on the BMW 3 Series (yes pulease)! And it would be offered as both a coupe and sedan. Other Cadillac news includes a story we ran earlier today about the new CTS Coupe and CTS-V Coupe coming in May. Tweets also covered a story we ran several weeks back about the DTS replacement being called the XTS and using the LaCrosse platform – meaning AWD will be optional.

As for the Buick brand, there will reportedly be a new model added to that lineup – a mid-sized sedan due out in the next 24 months. This will no doubt the the Chinese market Regal, a story we reported on several weeks back as well.

In Chevy news, those lucky enough to be at the General’s party today got to glimpse the 2012 Malibu, well ahead of its unveiling. Additionally Bob Lutz still isn’t done getting peoples’ hopes up, saying that the Pontiac G8 might still have a life at GM.

[Source: Twitter via Autoblog]

Yesterday we urged GM CEO Fritz Henderson to sit down with his new Vice Chairman Bob Lutz to get their stories about the future of the Pontiac G8 straight. Now they have, and the news isn’t good.

Bob Lutz posted on GM’s corporate Fastlane Blog that the G8 will not live on as the Chevrolet Caprice. In fact, it won’t live on at all. “The G8 will not be a Caprice after all. I’d mentioned it, and said we were studying it, giving it a serious look, because a car like the G8 was just too good to waste,” wrote Lutz, who continued; “But I have to say that, with my new ‘marketing’ hat on, upon further review and careful study, we simply cannot make a business case for such a program. Not in today’s market, in this economy, and with fuel regulations what they are and will be.”

Lutz then expressed his personal disappointment, but said there was just no way to make the car happen and that the company’s resources had to be placed elsewhere.

He then tried to reassure rear-wheel drive, performance enthusiasts saying that, “in no way does this mean we are backing away from performance, or backing away from rear-wheel drive.” He applauded the Holden team in Australia and said that he would like to look to their products to bring another RWD vehicle over in the future, but not now.

Sadly, the G8 will bow out after a short stay in the North American marketplace, an emotional product that fell victim to “further review and careful study.”

How about an apology for getting our hopes up Bob?

[Source: GM Fastlane Blog]

Perhaps General Motors CEO Fritz Henderson and his newly appointed Vice Chairman Bob Lutz should sit down, have a talk and get their stories straight.

After consistently saying that the Pontiac G8 would be eliminated with the rest of the Pontiac brand, it seemed as though Henderson had a change of heart after his newly appointed Vice Chair and product boss Lutz proudly proclaimed that the G8 would live on as a Chevrolet Caprice. Calling it “too good to waste” Lutz said the rebadged G8 would be available for consumers and as a special model for police departments.

Now, according to an Autoblog interview with Henderson , it seems only the latter is true. “We’ve been looking at it for police applications. As for whether or not it’s broader than police applications, I am not a believer in re-branding and re-badging. We’ve been talking about in terms of potential police applications and we’ll leave it at that.”

So there you have it… the official word on the future of the Pontiac G8… at least until Lutz opens his mouth next.

For a company that recently emerged from bankruptcy and that is trying to promote confidence in its leadership, General Motors certainly isn’t doing a very convincing job.

[Source: Autoblog]