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Shanghai GM stumbles in '08

Filed under: China, Buick, GM

One of the refrains we've all heard in recent years is how strong Buick is for General Motors in China, where it's not cursed with the stigma of being a grandparent's brand in the States. While most of yesterday's attention was rightly focused on the industry-wide year-end U.S. sales bloodbath, Shanghai Daily reports that 2008 was a bummer for GM's joint venture with SAIC in China.

Shanghai GM ended up down 7% versus 2007, with analysts saying that its new cars, like the freshly-updated Buick Excelle, didn't deliver the goods in terms of styling, price, or fuel economy. Hence, buyers reportedly turned to the VW Jetta and Toyota Corolla instead. Shanghai Daily points out that Chevrolet, Cadillac, and Saab all showed growth in China last year, so the overall Shanghai GM decline essentially gets laid at the feet of Buick. Now, it'll be interesting to see how 2009 plays out. GM is hoping that the Chevy Cruze can help get things back on track in the People's Republic (and everyplace else, for that matter) when it arrives sometime in Q2, joining other key Shanghai GM newcomers like the Buick Regal.

Shanghai GM's disappointing 2008 performance was part of a broader growth slowdown for the General in China. When factoring in the rest of its joint ventures, GM's China sales were actually up 6% overall. But that's a significant dropoff from the double-digit sales gains exhibited in preceding years -- 19% in '07, and at least 27% in the each of the four years prior to that, according to Bloomberg. With so many consecutive years of explosive sales growth, things were probably bound to level off as car shoppers transformed into car owners. Whether GM's influx of new models planned for this year and beyond stokes the sales fires in China again is a story that we'll follow throughout '09.

Gallery: 2009 Buick Excelle

Gallery: 2009 China Buick Regal

[Sources: Shanghai Daily, Bloomberg]

Shanghai GM stumbles in '08 originally appeared on Autoblog on Tue, 06 Jan 2009 17:01:00 EST. Please see our terms for use of feeds.

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GM/UAW concession talks commence

Filed under: Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, GM, UAW/Unions

To ensure long-term viability, General Motors has pledged an arm and a leg (and maybe an eye) to satisfy conditions imposed by the federal government after the automaker received billions in taxpayer-funded loans. In addition to reducing debt and condensing the number and type of vehicles it produces, GM has promised to revamp labor contracts -- not an easy task. With that in mind, GM is entering historic talks and negotiations this week with the United Auto Workers, bondholders, dealers and others to help transform the automaker into a lean and profitable company.

It's a monumental task, but GM needs to undertake serious financial concessions to implement their restructuring plans. These include eliminating up to 31,000 jobs, closing down nine assembly plants, shutting 1,750 dealerships, and possibly eliminating the Saturn brand. Of course, they also have to renegotiate the 2007 UAW labor contract with GM. The UAW has resisted wage and benefit cuts, but without union compromise GM could be forced to file bankruptcy... something none of the players wants to see happen.

[Source: Detroit News]

GM/UAW concession talks commence originally appeared on Autoblog on Tue, 06 Jan 2009 16:33:00 EST. Please see our terms for use of feeds.

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Ferrari may supply engines for Honda's ex-F1 team

Filed under: Motorsports, Honda, Ferrari

Ross Brawn, who joined the Honda F1 team as Technical Director in 2007 after an extremely successful stint across the paddock at Ferrari, has said that the now-ownerless ex-Honda F1 team he manages would like to ink a deal with its Italian competitor for engines to power its Formula 1 racers. Now that Honda has officially pulled its factory support from the program, the team will need a good, reliable powerplant if it has any chance remaining competitive, and Ferrari already supplies engines to Scuderia Toro Rosso and Force India in addition to its own Scuderia Ferrari Marlboro factory effort.

Regardless of what powerplant Brawn's team chooses, it isn't likely to get an early shot at testing. At this point, the team is just looking to stay on the track as it attempts to find itself a new buyer and any success found on the track for the '09 season would just be icing on the cake. Thanks for the tip, Eric!

[Source: F1 Fanatic - Photo: Tim Wang CC 2.0]

Ferrari may supply engines for Honda's ex-F1 team originally appeared on Autoblog on Tue, 06 Jan 2009 16:01:00 EST. Please see our terms for use of feeds.

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Hyundai Genesis pips Lexus ES350 for Consumer Reports' top-rated "upscale sedan"

Filed under: Sedans/Saloons, Hyundai

Click above for a high-res gallery of the 2009 Hyundai Genesis sedan

Hyundai made it clear from the onset that the new Genesis sedan would upset the balance in the luxury world, particularly at the expense of Lexus. Consumer Reports' latest round of testing proves that Hyundai has succeeded in dethroning Toyota's luxury arm as the latest credible entry into the "Upscale Sedan" arena. Just as Lexus was once the upstart that ruffled feathers, it's Hyundai's turn, and they are making the most of the opportunity with a win against all comers from the likes of Acura, Lincoln, Saab and Lexus, which had previously held the top overall spot with its ES350 sedan.

Despite the Genesis' win in direct testing, Consumer Reports doesn't have enough data to rate the sedan as "Recommended." The same goes for the ES350, which means that the Acura TL is the only competitor in the segment that officially gets CR's nod. Regardless, consider the gauntlet officially thrown at the feet of the established Japanese players, and we look forward to Round Two when Hyundai sends a shot over the bow of the sportscar world with the Genesis Coupe.

Gallery: 2009 Hyundai Genesis Sedan

[Source: Consumer Reports]

Continue reading Hyundai Genesis pips Lexus ES350 for Consumer Reports' top-rated "upscale sedan"

Hyundai Genesis pips Lexus ES350 for Consumer Reports' top-rated "upscale sedan" originally appeared on Autoblog on Tue, 06 Jan 2009 15:29:00 EST. Please see our terms for use of feeds.

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New details on Audi S1 emerge

Filed under: Sports/GTs, Hatchbacks, Audi, Rendered Speculation

Auto Express got the inside dope on the upcoming Audi S1, and the the compact hatch has its sights set on the MINI Cooper JCW, Fiat 500 Abarth SS, Alfa Romeo MiTo GTA and Volvo C30. Based on the new Audi A1, the S1 will feature a cranked up version of VW/Audi's Twincharger 1.4L TSI four tweaked to produce 200 hp and 221 ft-lb of torque. Power might be down compared to the S1's competitors, but expect the three-door to hold its own with a rear-biased quattro setup, a seven-speed S-Tronic twin-clutch gearbox and a lowered and stiffened suspension that might feature Audi's magnetic dampers. AE is projecting a 0-60 time of around six seconds, an electronically limited top speed of 155 mph and a combined fuel economy of 35 mpg.

The car should look as good as it moves, with styling that apes the metroproject quattro we saw in Tokyo last year. Expect an aggressive bodykit, 19-inch alloys, roof spoiler, and chrome accents. Inside, you'll find a flat-bottomed steering wheel, sport seats and aluminum pedals, along with a version of Audi's mobile electronic device. The dash-mounted Audi iPhone-alternative can actually control some of the car's systems remotely, but we wouldn't be surprised if the system doesn't make it to production for at least another two years. The baby S3 won't be is cheap, so expect the S1 to start at almost double the A1's £13,000 starting price when sales begin abroad next year.

Gallery: 2010 Audi S1 rendering