You are on page 1of 22

General Motors Sales Increase 21 Percent in November

Wed, Dec 1 2010
y y y y y

GM¶s four brands are on track to gain market share for the year Chevrolet monthly sales rise 18 percent; year-to-date sales are up 17 percent Buick monthly sales increase 36 percent; year-to-date sales are up 54 percent GMC monthly sales improve 30 percent; year-to-date sales are up 28 percent Cadillac monthly sales increase 21 percent; year-to-date sales are up 38 percent

DETROIT ± General Motors dealers reported 168,704 total sales in November, a 21-percent increase from the prior year for the company¶s four brands. The gains were the result of balanced contributions from Chevrolet, Buick, GMC and Cadillac cars, crossovers and trucks. With sales for GM¶s four brands up 22 percent through November, GM is on track to gain market share for the year. November retail sales for the company¶s brands rose 20 percent compared to a year earlier. ³Each brand came to the party in November,´ said Don Johnson, vice president, U.S. sales operations. ³These results show that our brands continue to gain momentum with consumers who want stylish, fuel-efficient vehicles.´ During the month, combined sales of the Chevrolet Equinox, GMC Terrain and Cadillac SRX increased 56 percent, while the combined sales for the Buick Enclave, GMC Acadia and Chevrolet Traverse rose 38 percent versus last year. Combined, GM¶s crossovers improved 39 percent during the month, and are up 51 percent year to date. Combined sales of the Chevrolet Avalanche, Chevrolet Silverado and GMC Sierra full-size pickups increased 16 percent for the month and are 16 percent higher year to date, compared to 2009. Passenger car deliveries increased 17 percent during November, driven by improving demand for the Chevrolet Cruze (8,066 unit sales) and Buick Regal (1,979 unit sales). Strong increases from Chevrolet Aveo (up 47 percent), Chevrolet Impala (up 19 percent) and Buick LaCrosse (up 20 percent) also helped drive the year-over-year improvement. ³November sales results are consistent with our expectations and show that the plan we laid out earlier this year to steadily grow in the U.S. market is working,´ Johnson said. Sales for GM¶s four brands have increased 22 percent through November, while the industry has increased approximately 11 percent. Month-end dealer inventory in the U.S. stood at about 536,000 units, which is about 21,000 higher compared to October, and about 98,000 higher than November 2009. November Key Facts and Brand Results:

y y y y

Calendar-year-to-date total sales for GM¶s four brands are up 22 percent Calendar-year-to-date retail sales for GM¶s four brands are up 15 percent GM¶s four brands have sold 103,014 more vehicles year-to-date than were sold with eight brands through November 2009 GM sells the most stylish, fuel-efficient crossovers in the U.S. market, with sales up 51 percent in 2010 Chevrolet: Chevrolet delivered 117,588 total vehicles in November, an 18-percent increase year over year. Retail sales for Chevrolet rose 13 percent on the strength of improving Cruze sales, and strong Silverado and Equinox retail sales, which were up 15 and 51 percent respectively. Year-to-date total Chevrolet sales are up 17 percent. Buick: Buick, the fastest growing major automotive brand in the United States, reported 11,725 total sales, a 36-percent increase compared to a year ago. This includes a 37percent rise in year-over-year retail sales ± the 14th consecutive month of year-over-year sales gains for the brand. Total Buick sales are up 54 percent for the calendar year to date. GMC: GMC reported total sales of 27,590, a 30-percent increase compared to the same month last year. This marks the 14th consecutive month of year-over-year sales increases. Retail sales were 29 percent higher than last year, spurred by Sierra, Acadia and Terrain ± up 16 percent, 76 percent and 55 percent, respectively. For the year, GMC total sales are up 28 percent. Cadillac: Cadillac, the fastest-growing luxury brand in the United States, reported total sales of 11,801 for November ± 21 percent higher than last November, with retail sales increasing 46 percent. November was the 10th consecutive month of year-over-year total and retail sales gains. SRX retail sales were up 39 percent, compared to a year ago. CTS retail sales rose 97 percent, driven by strong demand for the all-new CTS Coupe. Total sales for Cadillac are up 38 percent for the year. Fleet sales for GM¶s four brands were 47,330 for the month.

y

y

y

y

y

Ford, GM sales fare best General Motors Ford Motor Chrysler Toyota Honda Nissan Hyundai Mazda Mitsubishi May '09 190,098 155,620 79,010 152,583 98,344 67,489 36,937 16,718 4,352 May '08 266,744 205,270 148,747 257,406 167,997 100,874 46,415 27,921 10,430 Change Share May '09 Share May '08 -28.7 20.5% 19.1% -24.2 16.8% 14.7% -46.9 8.5% 10.6% -40.7 16.5% 18.4% -41.5 10.6% 12.0% -33.1 7.3% 7.2% -20.4 4.0% 3.3% -40.1 1.8% 2.0% -58.3 0.5% 0.7%

000 27.7% 1.5 7.9% 0.504 -16.92 0.89 8.8% 1.78B1 N/A N/A N/A F 58.7 1.66% 638.1% 0.383 1.76B 318.73% N/A 7.2% 0.63B 4.0% 0.1% 0.033 -33..6% 0.04B 10.7 21 23.000 -1.001 5.67 0..979 .71B1 N/A N/A N/A -3.38 N/A PVT1 N/A N/A N/A 17.8 9 -66.047 -16.60 Industry N/A 24.9% 0.534 -12.397.796 -29.6% 3.24 147.54% 7.10B 1.798 -30.469 -27.503 18.73% 13.1 25. 1.86 N/A N/A .1 18.20% 131.2% 0.2% NA 0.5% NA NA NA NA NA 2.30% 133.00M 0.31K 0.577 36.138 783 5.060 17.42 TM 123.40B 209.6% 0.6% 1.8% 0.824 31.6 286 -55.35% 9.5 3.Kia Subaru Suzuki Mercedes-Benz Saab Volvo Volkswagen Audi BMW Porsche Isuzu Jaguar Land Rover Mini Ferrari Maserati Bentley Rolls Royce Maybach Total 26.36B 15.5 8.7 2.5% NA NA NA NA NA Competitors Direct Competitor Comparison Market Cap: Employees: Qtrly Rev Growth (yoy): Revenue (ttm): Gross Margin (ttm): EBITDA (ttm): Operating Margin (ttm): Net Income (ttm): EPS (ttm): P/E (ttm): PEG (5 yr expected): GM 52.238 -22.96B 3.2% NA 0.3% 1.223 4.6 2.505 2.00% 6.00% N/A 28.610 85 128 159 26 3 925.003 -26 6.1 21.2% 0.364 -75.313 7.80% 242.26B 1.1% 0.2% 1.23 18.148 -63.5% 3.3% 0.312 -27 143 -40.1% 0.39% 22.757 -33.2 510 -100 1.8% 2.26% N/A 1.98B 6.54B 198.2 251 -36.05B 13.585 15.9 43.168 2.8 2.436 -5 10.

93 Private .View Profile NSANY.40 N/A 0.40 Private .08 9.32 Competition Due to GM's global presence and diversity of products.View Profile Private .93 F 16.74 HMC 37.76B 58.52 N/A Automakers Ranked By Sales Company General Motors Corporation Daimler AG Toyota Motor Corp. the company competes in one way or another with every mass auto producer.43 0. .PK 39. and negotiating for subsidies or bailouts with host country governments.p.69B 8.00% Market Cap P/E 52. Ltd. funding investment from in country profits.38 123. often developing their own cars.Major 1 = As of 2009 0.56 PEUGY.40B 147.View Profile Change 0. Ford Motor Co.S.PK 19.26 14.42% 1..View Profile TM 78.94B 18. Honda Motor Co. GM's non-U. PSA Peugeot Citroen Fiat S.78% 0. Volkswagen AG Nissan Motor Co.A.13% 0. Ltd.92 14.54B 41.81% 2. Renault Symbol Price GM 34. TM = Toyota Motor Corp.67 8.43% -0. operations are managed with considerable independence from Detroit.86 Private . As explained above. Industry = Auto Manufacturers .30B 67.P/S (ttm): Pvt1 = Chrysler Group LLC (privately held) F = Ford Motor Co.

This New York City Escalade billboard is six stories high. Cars like the highly successful Toyota Prius are a big challenge for GM's own Saturn hybrids. small. UAW demands do no more than put Big Three companies at a direct and pronounced disadvantage. Now.to medium-sized car market with their flexibility. . worked both to placate workers and to maintain balance in the US auto industry.GM continues to spend heavily on traditional advertising (including billboards and movie placements). Foreign companies like Toyota and Nissan are poised to dominate the mainstream. The UAW's old method of keeping the Big Three in check. GM will also have to fight these newcomers in what remains of its highly lucrative gasoline-based SUV/trucks sector. unlike many of its lighter Asian competitors. cheaper prices. However. The influx of foreign cars into the US market has had huge ramifications for the Big Three. foreign companies now account for more than half of the US auto market. and (in Toyota's case). Yet the biggest threat is still from foreign companies. by demanding steep concessions whenever a clear leader seemed to emerge. early investments in fuel efficiency.

Michigan. GMC. With its global headquarters in Detroit.4 percent of the market. General Motors.5 million cars and trucks globally. where its sales rose 66.000 people in every major region of the world and does business in some 157 countries.9 percent in 2009.000 vehicles and accounting for 13.830.General Motors The General Motors Company (NYSE: GM. It employs approximately 266. GM employs 205. In 2009. Chevrolet. security and information services. General Motors sold 6. Vauxhall. General Motor's biggest success has been in the People's Republic of China. selling 1.[3] traces its roots back to 1908.U) is an American automaker with its headquarters in Detroit.000 people around the world. TSX: GMM. and sell and service these vehicles through the following divisions: Buick. General Motors is headquartered at the Renaissance Center in Detroit. GM's OnStar subsidiary provides vehicle safety. the world's second largest automaker. General Motors produces cars and trucks in 31 countries. Opel. Cadillac.[4] .

he again lost control. Others. were sold. Hummer. was discontinued in August. the content and the structure of its brand portfolio (its brand architecture) is also being reorganized. because of the large amount of debt taken on in its acquisitions coupled with a collapse in new vehicle sales. Durant lost control of GM in 1910 to a bankers' trust. Also in 1909. his adopted home. whose benefit was shone on the city of Flint. Shortly after. Durant.History The company was first founded on September 16. after the new vehicle market collapsed. this time for good.000 workers and operated 150 assembly plants.[5] [edit] Brand reorganization As part of General Motors Corporation's reorganization as General Motors Company. the predecessors of GMC Truck. This unprecedented growth of GM would last into the early 1980s when it employed 349.[13] Some nameplates like Pontiac. Oakland and several others. then controlled by William C. Michigan. whose carriage company was merged into Buick prior to GM's creation. Sloan was picked to take charge of the corporation and led it to its post-war global dominance. Saturn. as a holding company for Buick. where GM underpinned every brand to a multiple brand corporate invisible brand architecture structure. Durant brought in Cadillac. and the Rapid Motor Vehicle Company of Pontiac. no matter what the brand. Over the years Mott became the largest single stockholder in GM and spent his life with his Mott Foundation. Durant then reorganized General Motors Company into General Motors Corporation in 1916. and service brands like Goodwrench were discontinued.[15] The company has moved from a corporate-endorsed hybrid brand architecture structure. Durant took back control of the company after one of the most dramatic proxy wars in American business history. In 1909. GM acquired the Reliance Motor Truck Company of Owosso. 2009. longer than any other automaker. GM has led global sales for 77 consecutive years (1931 to 2008).[16] . Michigan. Elmore. Durant started the Chevrolet Motor Car Company and through this he secretly purchased a controlling interest in GM. Alfred P. Michigan. The longest-lived continuous automobile nameplate still in production is the Chevrolet Suburban The next year. 1908. It acquired Oldsmobile later that year. like Saab. GM's co-founder was Charles Stewart Mott.[14] The practice of putting the "GM Mark of Excellence" on every car. in Flint.

8% 4 South America 384 15.[13] [edit] Global sales GM worldwide vehicle sales by Top-four markets/regions by vehicle country 2008[17] sales in 2008 (thousands) (thousands) Rank Market Vehicle Rank Market in Market/Region share Vehicle sales in Country share GM (%) sales GM (%) 3.3% 66 3.095 12.8% 212 19.4% 4 United Kingdom 5 6 7 8 9 Canada Russia Germany Mexico 359 21. .552 21.4% 338 11.3% [edit] Sales figures Calendar Year U.981 22. sales Chg/yr.1% 300 8.1% 2 Republic of 1 United 1.The company's familiar square blue "badge" has been removed from the Web site and advertising.8% 133 13.095 12.S.3% 3 Union Brazil 549 19. subtle all-text logo treatment.9% 1 North America People's 2.0% States China China 1.5% 3 815 20.8% Australia South 10 Korea France 11 Spain 12 13 14 15 16 Argentina Venezuela Colombia India 95 15.0% 2 European (PRC) 905 12.1% 117 114 107 9.5% 91 33.4% 7.7% 4.3% 80 36. in favor of a new.

1% World presence GM World Headquarters [edit] North America In North America.707.3% 1.980. and fuel-efficient cars of tomorrow.705 4.017.3% 22.015 4.858. Buick.9% 2.517.904.416 4. discontinuing.1% 1.645 3. or scaling back its other brands.603.991 5.688 2.0% 4.7% 6. GM announced that its corporate chrome power emblem "Mark of Excellence" would begin appearing on all recently introduced and all-new 2006 model vehicles produced and sold in North America. safe.1998[18] 1999 2000[19] 2001 2002 2003 2004[20] 2005 2006[21] 2007 2008[22] 2009[23] 4.492 9.0% 8.084. which will aim to break even with annual sales much lower than previously stated."[37] In the middle of 2005. and GMC ² while selling. that can lead America towards an energy independent future. However.150 4. The White House characterized the GM restructuring as a shift toward a new leaner.866.0% 0. GM will focus primarily on its four core brands ² Chevrolet. saying that emphasis on its four core brands would dictate downplaying the GM name.620 2.9% 30.124.730 4.403 4. Cadillac.163 4. in 2009 the "New GM" reversed this.756. and that is once more a symbol of America's success.953.0% 1. a new GM that can produce the high-quality.[38] .[36] President Obama declared that the restructuring "will mark the end of an old GM. and the beginning of a new GM. greener GM.

The company manufactures most of its China market vehicles locally through Shanghai GM. 2010. In August 2009 the joint venture of FAW GM Light Duty Commercial Vehicle Co Ltd was formed that mainly produces Jiefang light-duty trucks. sales of 188. Since 1983 GM and Al-Monsour Automotive Company has founded the General Motors Egypt which is currently the only manufacturer of traditional GM branded vehicles in Egypt. 1997.[edit] Asia The Buick brand is especially strong in China. The Shanghai GM plant was officially opened on December 15. Le Mans. The Speranza Motors is a big company which started in the 1990s with the SKD assembling of Daewoo cars. [edit] Racing heritage GM has participated over the years in the World Touring Car Championship (WTCC). Nascar.wsj. starting with exports to China. 1998. And the company said it is ³on track´ to sell more than 2 million vehicles in China in 2010. WSJ. and many other world venues. the Ghabbour Brothers began to assemble Cadillac. outsold its U. moving the former Buick Sail to that marque. GM withdrew from the Egyptian market. "GM to Invest in Green Technology in China". when the first Chinese-built Buick came off the assembly line. 2007). http://online.S. . which was created on March 25. Some year later.[43] [edit] Africa General Motors has a long history in Egypt which began in the 1920s with the assembling of cars and light pickup trucks for the local market.html. Chevrolet and Buick models up to the 1990s.[41][42]Blumenstein. GM made Cadillac a chief sponsor of the state-run China Film Group Corporation's Birth of a Party. SCCA. The last emperor of China owned a Buick. The SAIC-GM-Wuling Automobile joint-venture is also successfully selling microvans under the Wuling marque (34 percent owned by GM). a film dramatizing the events leading to the creation of the Chinese Communist Party in 1921 after Russia¶s October Revolution in 1917. Today the main products of Speranza are from the Chinese Chery concern. In the mid of the 1950s. Rebecca (October 30.048 vehicles in March 2010. GM pushed the marketing of the Chevrolet brand in China in 2005 as well.546 by 22 percent.com/article/SB119365251905674678.[40] GM increased its sales in China by 68 percent to 230. four years ahead of its plan. Retrieved November 7.[39] The Cadillac brand was introduced in China in 2004. led by the Buick Excelle subcompact. a joint venture with the Chinese company SAIC.

The Holden Racing Team is Australia's most successful team in Australian Touring Car History. The current Holden Racing Team cars are based on the Holden Commodore and run a 5. [edit] Philanthropy Since 1996. In 2006 & 2007. Recently. GM has also done much work in the development of electronics for GM auto racing. gave over $1.Chevrolet Cruze in the WTCC Corvette Racing Team at the Le Mans GM's engines were highy successful in the Indy Racing League (IRL) throughout the 1990s. the Pace Awards program led by GM.0-litre V8-cylinder engine producing 635 bhp (474 kW). there is the V8 Supercar Championship which is battled out by the two main rivals of (GM) Holden and Ford.[45] In 2009. the Cadillac V-Series has entered motorsports racing. Buick Regal. GM has also used many cars in the American racing series NASCAR. a national initiative to ensure child automobile safety through education and inspection. including the record for speed endurance in the Motorsports Hall of Fame of America. the Drivers championship was won by the very closely linked HSV Dealer Team. and the Chevrolet Monte Carlo were also used. the GM led group has helped the Pace Awards program worldwide. Chevrolet Malibu. winning many races in the small V-8 class.8 seconds. An unmodified Aurora V-8 in the Aerotech. Oldsmobile Cutlass. and SUN Microsystems. Currently the Chevrolet Impala is the only entry in the series but in the past the Pontiac Grand Prix. captured 47 world records.[44] Through 2002. General Motors has been the exclusive source of funding for Safe Kids USA's "Safe Kids Buckle Up" program. These cars have a top speed of 294 km/h (183 mph) and run 0±100 km/h in 3. EDS. Chevrolet Lumina.[46] General Motors is a leading contributor to charity.2 billion of in-kind contributions which includes computers to over 18 universities to support engineering education. In Australia. In .

GM gave $51.S. Headquartered in Warren.000 in-kind donations to charitable causes.000 in cash contributions and $17. This retooled plant will be capable of building 160. Kettering. The new small car will add to a group of small and fuel-efficient vehicles that the company is planning to roll out in the near future.200. Michigan. This will be first time ever a large manufacture producing a Supermini vehicle in the United States.200. the GM Research Lab is a network of six laboratories.[48] [edit] Environmental commitment .000 cars annually. suppliers and other partners from across the globe. It was organized in 1920 by inventor Charles F. six science offices and collaborative relationships in over twelve countries including working relationships with universities. factories for the production of a small car in Orion.2004. including both small and compact vehicles. [edit] Small car sales Chevrolet Aveo Concept As part of General Motors Company development.[47] [edit] Research and development GM R&D was the world¶s first automotive research center. it plans to revive one of its idled U. Mi with the creation of 1.200 American jobs. government groups.

4. 6. participate actively in educating the public regarding environmental conservation. In 2008 General Motors committed to engineering half of its manufacturing plants to be landfill-free.000 solar panels. continue to work with all governmental entities for the development of technically sound and financially responsible environmental laws and regulations. The Zaragoza solar installation covers about 2. pursue vigorously the development and implementation of technologies for minimizing pollutant emissions. The Zaragoza Manufacturing Plants's Solar Panels General Motors added the world's largest rooftop solar power installation at their Zaragoza Manufacturing Plant in fall of 2008. The company was the first to use turbochargers and was an early proponent of V6 . [edit] Environmental initiatives The company has long worked on alternative-technology vehicles. [edit] Environmental principles General Motors have a published policy that includes committments to 1. production waste is recycled or reused in the manufacturing process.000. conserve resources. continually assess the impact of the production plants and products on the environment and the communities in which they exist and operate with a goal of continuous improvement. actions to restore and preserve the environment 2. reduce waste and pollutants. and has recently led the industry with ethanol burning flexible-fuel vehicles that can run on either E85 (ethanol) or gasoline. and recycle materials at every stage of the product life cycle 3.2011 Chevrolet Volt a plugin electric vehicle General Motors has a commitment to environmental responsibility and is one of the leading users in renewable energy. ft. of roof at the plant and comprises about 85. In order to achieve its landfill-free status. 5.000 sq.

In 2005. in conjunction with AeroVironment.7 L/100 km. the 1/2-ton Silverado/Sierra. built the Sunraycer.engines in the 1960s.[51] GM has recently introduced the concept cars Chevrolet Volt. like GM's later designs. E85. GM delivered the world's first full sized hybrid pickups. an area of interest throughout the industry. or fuel cells. GM supported a compromise version of the Corporate Average Fuel Economy (CAFE) standard increase from 27 mpg-US (8. the first such increase in over 20 years. GM 1/2-ton pickups and possibly other vehicles. In 1987. They demonstrated[49] gas turbine vehicles powered by kerosene. the Opel Astra diesel Hybrid concept vehicle was introduced. a production Chevrolet Volt will be available by late 2010 as a 2011 model. powered by gasoline. Cadillac Escalade. GM currently offers the two-mode is used by the Chevrolet Tahoe/GMC Yukon and will later be used on the Saturn Vue (cancelled). GM has hinted at new hybrid technologies to be employed that will be optimized for higher speeds in freeway driving. These hybrids did not use electrical energy for propulsion. but abandoned the alternative engine configuration in view of the 1973 oil crisis. which is an electric vehicle with back-up generators. 42 mpg-imp). but quickly lost interest as the muscle car race took hold. According to GM. GM pushed the benefits of diesel engines and cylinder deactivation technologies with disastrous results due to poor durability in the Oldsmobile diesels and drivability issues in the Cadillac V8-6-4 variable cylinder engines. Much of the technology from Sunraycer found its way into the Impact prototype electric vehicle (also built by Aerovironment) and was the predecessor to the General Motors EV1. In the 1970s and 1980s. 32 mpg-imp) to 35 mpg-US (6.[52] The GM Magic Bus is a hybrid powered bus. The 2006 Saturn Vue Green Line was the first hybrid passenger vehicle from GM and is also a mild design. which won the inaugural World Solar Challenge and was a showcase of advanced technology. GM.[50] [edit] Hybrid electric vehicles Chevrolet Tahoe Hybrid In May 2004.[53] .7 L/100 km.

[52] to be produced in early 2010.S. It was the first car with zero-emissions marketed in the US in over three decades. to individuals. The economic feasibility of the technically challenging hydrogen car. GM debuted the revolutionary "Impact" concept car at the Los Angeles Auto Show. General Motors has announced that it is building a prototype two-seat electric vehicle with Segway. ± will be shown off in New York a day ahead of the press previews for the 2009 New York International Auto Show. thermal management.[54] [edit] Battery packs for electric vehicles GM builds battery packs in southern Michigan. All of the EV1's were eventually returned to General Motors and. they declined to renew the leases or allow the lessors to purchase them. has also been discussed by other automobile manufacturers such as Ford and Chrysler. with the exception of a few which were donated to museums. Michigan. Arizona.[52] LG Chem's U. Compact Power of Troy. GM has prided its research and prototype development of hydrogen powered vehicles. In 1999 GM decided to cease production of the vehicles..A. Finally an existing GM facility at Brownstown Township was chosen to be upgraded as battery pack plant. The Impact was eventually produced as the EV1 for the 1996 model year. An early prototype of the Personal Urban Mobility and Accessibility vehicle²dubbed Project P.g.U. and the low-cost production of hydrogen to fuel it. [edit] Hydrogen initiative Sequel. . as well as the pack assembly. a fuel cell-powered vehicle from GM. When the individual leases had expired. California. has been building the prototype packs for the development vehicles and will continue to provide integration support and act as a liaison for the program. all were destroyed. In 1990. subsidiary. rather than sold. Georgia).[52] GM also established an automotive battery laboratory in Michigan. It was available through dealers located in only a few regions (e. using a support infrastructure still in a prototype state.[55] GM will be responsible for battery management systems and power electronics. Vehicles were leased.M.[edit] All-electric vehicles General Motors was the first American company (in the modern era) to release an all-electric automobile.

Some will decide to move away from selling GM brands and others will decline to meet the automakers' requirements for additional investment in their facilities. . GM offers 18 ethanol-enabled FlexFuel cars and trucks in the US. GM vice president Mark LaNeve said.Saturn. The company is likely to cut another 900 and eventually get its network down to between 3. Saab and Pontiac.[57][58][59][60] and also using badging with the text "Flexfuel/E85 Ethanol" to clearly mark the car as an E85 FFV.com) -. Larry Burns. said he's not yet willing to say exactly when hydrogen vehicles will be mass produced. or any blend of both. Of the 900. He said "I sure would be disappointed if we weren't there" before 2020.600 and 4.000 dealerships Friday that it is terminating their contracts with the struggling automaker. about 500 will come from GM's plans to sell or close four brands . The company's expectation is that the surviving dealerships will become larger and more profitable as a result of the thinning out.000 dealers by next year. LaNeve said another 400 will be lost through attrition and consolidation. or about three a month. As of 2009. GM spokeswoman Susan Garontakos said that the dealers receiving notice Friday are being told that their contracts will not be renewed in October 2010.100 dealers NEW YORK (CNNMoney. Many of them are expected to close shop this year.[56] [edit] Flexible-fuel vehicles GM produces several flexible-fuel vehicles that can operate on E85 ethanol fuel or gasoline. Between 400 and 500 of the dealers notified Friday sold an average of only 35 vehicles a year. vice president of research and development. which in turn will allow them to spend more on advertising and facilities.S.100 of its 6. and produce more than one million new FlexFuel vehicles. But GM also acknowledges that its long-term decline in U.S.In June 2007. the first step in cutting up to 40% of its retail network.[61][62] GM is the leader in E85 flex fuel vehicles. with over 3 million FlexFuel vehicles on the road in the U. On top of the dealers GM is cutting. the year many experts have predicted. Since 2006 GM started featuring a bright yellow gas cap to remind drivers of the E85 capabilities. GM's goal is to have half of their annual vehicle production be E85 or biodiesel capable by 2012. market share will continue as a result of the smaller network of dealers.General Motors notified 1. Another 400 dealers will be eliminated in a second cut as GM continues to restructure. but he said it should happen before 2020. GM whacks 1. Hummer.

GM. 'It's time for me to go. as part of its bankruptcy restructuring. dealer networks than their Asian rivals. Chrysler and Detroit rival Ford Motor (F. "It would be a huge cash flow hit.only about five or six vehicles a week." LaNeve said about difficulty in GM having to repurchase or resale all those vehicles.100 dealers sold about 7% of GM's sales volumes last year. which has been bankrolling GM's ongoing losses. unions and dealerships on a turnaround plan. Dodge and Jeep dealers. although CEO Fritz Henderson has said such a filing is "probable." Business failures and purchases of dealerships by larger dealers has already shaved GM's dealership ranks by about 300 this year. "Supply and demand would really take down resale values. If it fails to do so. Chrysler would not repurchase their inventory or pay anything for their closure. assuming the move is approved by the bankruptcy court.The rest of the dealers on the list also had very low average sales by industry standards . GM will be facing a serious problem if the majority of the dealers decide to quit the business in the near term. "One of the things it does is give them time to make a good decision.. GM would then be required to repurchase the 65. the Treasury Department. has said it will force the company to file for bankruptcy. Under terms of the bankruptcy filing. said he hasn't even seen the list of 1. He said that he had heard from two dealers who got the letters Friday and neither was surprised.100 dealers. N. in danger of going out of business anyway." The move comes a day after Chrysler LLC announced that it is dropping nearly 800 Chrysler. but that the remaining dealerships will be more profitable as a result. In total the 1. "It [the letter] shouldn't be a surprise to them.S." Paddock said. GM (GM. "One thing that was evident was that there were too many dealers and the pie just wasn't big enough. Garontakos said. "I've got to think that some dealers will look at this and say. "These are dealerships that were hurting. chairman of the GM dealer council." Paddock said it's too bad that GM has reached the point where it needs to cut dealerships. Buffalo." The company has until the end of the month to win agreement from creditors.Y. That's because under their contracts. Fortune 500) have far larger U." said LaNeve. .-area auto dealer Duane Paddock.000 cars they have in their collective inventory. or about a quarter of its network." Paddock said. a remnant to the days when the so-called Big Three dominated the market in a way they no longer do. The Chrysler dealerships agreements will be terminated around June 9. Fortune 500) is not yet in bankruptcy court.' Others may go out and look for another franchise.

" NADA and various dealership organizations at GM and Chrysler are fighting the cuts. "We view GM's action with a profound sense of sadness and disappointment. and an expert in dealer franchise law. "I'm going to be here another 70 years." Bruce Spencer. said he believes many dealers will have a strong court case fighting the termination as long as GM stays out of bankruptcy court. rather than a multi-brand dealership on a highway. whose father started one of the dealerships she operates 72 years ago. GM's big losses might not be seen as "good cause" for terminating the dealer contracts.The National Automobile Dealers of America estimates that GM's cuts will affect about 63. despite the powers granted to the bankruptcy court and the demand for cuts by the Treasury Department. but admitted "everyone had fear. GM had previously said it would likely cut in major metropolitan and suburban areas. The names and locations of all 1." One of her dealerships. a partner at the Smith Law Firm in Helena. "I was trying to be positive that GM would make the right decision.. family-run businesses that have been loyal partners with GM -. That's the goal here. The dealers hope that state franchise laws may still protect them.100 dealers was not publicly released Friday. said she had been confident that her sales volume would allow her to survive. who operates two Chevrolet dealers in the New Jersey suburbs of New York City. Mont. It said the company's problems are "no fault of the dealers. is a single-brand operation on a downtown main street." Some of the dealers that survived Friday's cuts expressed relief. By comparison. who are. Spencer said. GM employees about the same number of union workers in its factories.000 employees of those dealerships." . where it acknowledges that "dealership overcapacity is most prevalent. Many experts had speculated the downtown and single-brand dealers were most at risk of closure. LaNeve said he knows many of the affected dealers personally." NADA said in a statement.through good times and bad -for multiple generations." he said. he added. Schumacher Chevrolet. "This isn't easy for anybody. Judy Schumacher-Tilton. The dealers' chances in court drops dramatically if GM files for bankruptcy. lobbying Congress and hiring bankruptcy attorneys to argue their case. in many cases. "But for the survival of the enterprise you have to put a strong plan in place." said Schumacher-Tilton.

Calif. Incentives in some states can reduce the price further. would drop the suggested retail price to $28. Leases will begin at $350 a month for 36 months. but they will be few in number.000 is General Motors' suggested retail price. with $2. ³No other automaker offers an electrically driven vehicle that can be your everyday driver. as the initial production runs are limited. standard.S. Customer deliveries are scheduled to begin late this year. Published July 27.000 rebate. California's $5. GM says. GM said. Orders are now being taken from participating Chevrolet dealers. With a full federal tax credit.´ said Joel Ewanick. if it applies. with a starting suggested retail price of $41. who made the announcement at the Plug-In 2010 conference in San Jose.500. will be "packed" with premium and innovative features.500. 07/27/2010 . the extended-range electric vehicle's suggested retail price is $33. 2010 The long-awaited pricing for the 2011 Chevrolet Volt has been announced: $41. Demand Likely to Exceed Supply Submitted by Editor on Tue. whenever. based on current conditions.General Motors Sets Price for Volt." . The Volt will be packed with premium content and innovation.11:11am in y y all states plug-in cars PHOTO CREDIT: SOLAR HOME & BUSINESS JOURNAL The Chevrolet Volt.500 due at the lease signing. vice president of U. to take you wherever. "The Chevrolet Volt will be the best vehicle in its class « because it¶s in a class by itself. marketing for General Motors.000.

four-cylinder engine that will use premium gasoline." The Volt contains both an electric propulsion system and a 1. D. and more. General Motors has the capability to ramp up production of the car should that prove desirable. depending on terrain.. When the 16-kilowatt-hour battery pack begins to run low. DiSalle did not mention it.. The company chose to price the Volt for sale initially at the high end of its range of possible pricing points. antilock brakes. Tony DiSalle.000 Volts.C..The Volt will be initially available to Chevrolet customers in California.getmyvolt. . Chevrolet will have a team of Volt advisors available to answer questions starting today at 1-888-8. Ewanick said at the San Jose conference. one possible trajectory for the Volt is an accelerated production schedule in 2012 if all goes well during the first year of consumer use. For customers needing general Volt information. Total 2011 production is scheduled to be 10. Bluetooth wireless device connectivity." Mr. at http://www. Connecticut. and 2012 production is expected to total about 30. a premium stereo system. area.com. The dealer will begin the order process. which will be followed up by contact from a Volt advisor who will be available to answer any questions and keep the customer apprised of the progress of their order.000 cars. "We wanted to make the Volt ownership experience unlike anything we¶ve done at Chevrolet." Mr. New Jersey and the Washington. a 7-inch touch-screen navigation display. General Motors said a Volt dealer locator would be available sometime today. climate and driver habits. Although Mr. DiSalle said in a news release. New York. To be among the first to purchase a Volt. July 27. Interested customers who tarry may not have a chance to obtain a Volt until 2013 at the earliest.4-liter. "We want customers to fully enjoy the Volt lifestyle by providing unprecedented connectivity to their vehicle through the Volt mobile app. said in an Internet conference later Thursday. electronic traction control. we have limited product. . "There is excess demand out there. Texas. because the Volt is unlike any vehicle we¶ve offered. "We are being very purposeful in the first year's production" to ensure that the new vehicle exceeds expectations before it is made available to wide numbers of consumers. Michigan. the gasoline engine turns on to recharge the battery and extend the car's range by an additional 300 miles or so. eight air bags for passenger safety. using electric power only. loading it with such standard amenities as five years of its OnStar communications and diagnostic system. customers can visit their nearest participating Chevrolet Volt dealer. the Volt's marketing director. The car will have a range of roughly 40 miles.

Depending on their tax obligations. GM's vehicle line director for the Volt.S. Owners in certain states may qualify for access to high-occupancy vehicle lanes. rollout plan for the battery-powered Nissan Leaf. federal income tax credits. Department of Energy. depending on location. Department of Energy to install approximately 15. especially at peak demand times of the afternoon and early evening.S. Arizona and Tennessee. Mr. who represent more than 55 percent of total Nissan Leaf reservations. While General Motors was announcing pricing for the Volt. electricity customers are already being offered optional time-of-use rate plans that charge lower prices for electricity in the night and higher prices in the daytime. These states are part of the EV Project. General Motors officials have said that the lithium-ion battery packs to be used to power the cars will have plenty of storage and discharge capacity remaining when their use in the vehicles has ended. Makes Debut. Posawatz said in the Internet discussion. For more information on that topic. DiSalle and Tony Posawatz. but a total of 4.000 miles of driving. a plan to deploy thousands of electric vehicles and charging stations at the same time. as well as other potential state and local tax credits or rebates. The EV Project is a result of a partnership with charging infrastructure provider ECOtality and is partially funded by a grant from the U.000-mile warranty. The Volt will come standard with a 120-volt charge cord that will provide owners with the ability to charge the car directly from a standard home electrical outlet. and Mr.500 in U.000 240-volt home charging stations across the country.S. including home installation. and is designed for up to 150. Oregon. stressed in the Internet discussion that recharging the battery with renewable electricity is a major aim of the car's developers.400 Volt buyers in launch markets could be eligible for a free 240-volt charging station. Such rate plans may start to become mandatory a few years from now. Many used automotive battery packs are expected to have extended service lifetimes storing electricity for household use. Faster charge times of four to five hours will be available for customers who choose to install what are called "Level II" chargers with 240-volt nominal capacity. "We would gladly use that battery to collect all that wonderful green electricity" when it is available. a Second Life for Batteries May Save the Day" and "Solar Home of the Future." The Volt battery pack will come with an eight-year. Customers in the first five launch states. Mr. will be able to place firm orders for the car starting in August. With EV in the Garage. The installations are part of a program developed by the U. owners of the Volt and other plug-in electric vehicles can qualify for up to $7. In some states. 100. Washington. . please see our stories "With Plug-Ins. Posawatz said.S. Nissan North America was announcing its U. The car will be available first to consumers in December in California.Plug-in electric vehicles ± the few that have been available to consumers in the United States ± have proved very popular with owners of solar electric systems. The maximum charge time using a standard household 120-volt outlet will be about nine or 10 hours.

in reference to himself and Mr.280. which has a 24-kilowatthour battery pack and an all-electric range of about 100 miles. North Carolina. will also have an eight-year. In California." . The car is to be rolled out to the balance of the nation beginning in fall 2011. Georgia. the District of Colombia. The Leaf. with a maximum federal tax credit of $7. with availability in all markets nationwide by the end of that year. Nissan announced. Virginia. State or local incentives also will be available for the Leaf. the price will be $25. and a backup camera. South Carolina and Alabama will follow in April 2011. Posawatz said of the Volt: "They're wonderful and fun to drive." adding. The base price for a Leaf will be $32.000-mile battery warranty. Florida. DiSalle. special styled wheels.The Leaf will be introduced in Texas and Hawaii in January 2011. 100. DiSalle said General Motors sees "nothing but upside and a whole bunch of cool stuff to come from this game-changing car. the base price will be as low as $20.500. Mr.780." Mr. a couple of Midwestern guys showed how it's done. There will be limited options available with the Volt: Options will include leather seating and interior appointments. Maryland. "Here in high-tech Silicon Valley.280 including the state rebate.