Gmc News

Ford Australia and GM Holden are waiting to hear the outcome of a last- ditch appeal by their American parents for $15 billion in critical short-term funding to prevent them going into bankruptcy."We don't know how it could play out if they fail. That's not a prospect that anyone wants to contemplate," the chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar, said yesterday."The fortunes of all the local manufacturers are intrinsically tied to their global parents. The situation for the American companies is obviously extremely serious. They are not bluffing."There is no direct threat to either Ford Australia or GM Holden, and company chiefs insist there is no crisis at Broadmeadows or Fishermans Bend, but the drama in the American motor industry continues to create ripples of confidence in Australia."It is business as usual. But it is ever-more imperative that we continue to sell our cars and run our business correctly," the spokesperson for Ford Australia, Sinead McAlary, said yesterday."At Holden it's business as usual, just as it has been throughout the entire US process. We are continuing our efforts to address local market conditions," said Jonathan Rose of GM Holden.The 'Big Three' have appealed to President Bush for bridging loans to carry them through the first half of 2009 after the American Senate voted-down their original proposal for a bail-out. New-vehicle sales in the USA have collapsed as a result of the American financial meltdown, with analysts forecasting a 17-million market will drop to around 10 million next year.Chrysler, which is only an importer here, will also be affected by any decision in Washington."I don't know very much," Chrysler Australia's managing director, Gerry Jenkins, admitted yesterday."We all know in our heart of heart that the US economy is going to get better. We just don't know where the bottom is. We are riding the bronco."Everything is unfortunately about the US. The economy will have to turn before any positive comes out." 

No.. but we are closer than we have ever been.Even more than architecture, fashion and aircraft, cars are the most visually represented statement of our possible future. From Rust Heinz’ 1938 Phantom Corsair to Syd Mead's Spinner in Blade Runner, the car has been central to our dreams and the imaginations for our potential.The 1950's saw the emergence of a style of design exemplified by Nuccio Bertone, Virgil Exner and Harley Earl, that while it may be considered visually naive now still has profound influence on our perception of future possibilities. GMs Motorama of 1956 was the major showcase for this style of design that lasted into the early seventies, the over-riding feature being the human interpretation of function as driven by form.. The last truly great examples of this period; the Coke bottle Corvette of 67-73, the Ferrari Dino, Lamborghini Muira and E-Type Jag are now revered as works of art by car cognoscenti and their prices reflect their stature in the motoring world.. All of these cars display a human’s perception of the flow of air over metal; the mind as a virtual wind tunnel. Post these cars we saw a period of design that was quite - well...., square.The second coming of car design emerged around ten years ago and has been going from strength to strength. While the Futuristic period of the 50's set the visual benchmarks and boundaries for current designers, the designers of the period did not have the shackles of the oil, financial or environmental crisis to deal with. They also did not have the technology available that allowed them to add the function to the form efficiently. At the very heart of the current design period is the evolution of human possibilities that advancing technology and social dreams and responsibilities allow and dictate.. What we are seeing is art meeting and merging with technology to create form with function. If the 50’s were the golden era of car design we have now reached platinum. The Veyron, the 599, the DBS, 997, Murcielago and yes, still the Corvette – all are incredibly beautiful and also capable of 200 mph in relative safety.As exciting as car design presently is the Futurama period is hard to let go of, hence the number of Retro-future cars we continue to see. From the Mini to the Mustang good design should be celebrated, honored and mimicked. The re-interpretation of a classic design when made relevant to the current situation is not something to scorn as it just adds another variety, another choice - and there is nothing wrong with that.For a lot of current designers the benchmark for futuristic design was set in the 70's by Syd Mead  ...Visually we are there. Technologically we are close.We are at the dawn of the alternate propulsion era. We have broken through the political and financial barriers of the oil era. In many ways we can thank the current financial crisis for that. Electric is on the way, which will be an enthusiasts dream with its full size slot car performance and environmental friendliness.Let’s just not get to the point we ban petrol cars from our roads, let them naturally evolve out.With the future - we are almost there, but our past is continuing to remain with us longer. - Thankfully.The last turn of a V12 on a public road should be put off for as long as possible.Rod Halligan

The big question everyone is asking right now is not whether or not the $6.2 billion of taxpayer's money the Federal Government has stumped up for the local car industry is good value but whether the parent companies of Holden and Ford Australia in the US will be in existence next year.If, as is looking increasingly likely, they go belly up, where does that leave Holden and Ford Australia? And what becomes of our $6.2 billion investment.It's the subject of much speculation and calls into question the massive leg-up provided by us, the Australian taxpayer, to local subsidiaries of GM and Ford. And remember, both US parent companies have been in the poo for longer than a few months - their problems go right back to the start of the century when there was a lack of suitable development and poor forward planning. This resulted in both companies getting in a right pickle with the wrong vehicles at the wrong time, push sales driven by discounting and other ridiculous practices, zero per cent finance and a whole train crash of don'ts.They were too focused on cranking out massive pick-up trucks and not the sort of cars they needed to stay ahead of the game.A little crystal ball gazing is tempting in a situation like this, with a smattering of some hypothetical scenarios.Locally, Toyota stands to benefit hugely in the event of the demise or sell-off of Holden and Ford. And rest assured, GM and Ford wouldn't hesitate to flick their non-core businesses to keep the US parent companies afloat at home.That $6.2 billion earmarked for three companies would neatly go back to one, and Toyota has already moved solidly towards making a “green” hybrid car in Australia for which the funds are ostensibly provided. It's a fair old wad in the back pocket for Toyota.But there are other delicious possibilities.Could it be possible for Ford Australia and Holden to move to nationalised ownership and Australia take advantage of the wealth of talent and experience available there. It could be used to tap into a select market, manufacture cars locally and even start supplying technology and components to other carmakers. What red-blooded Aussie wouldn't buy a good car made here by a fair-dinkum Aussie company and not some quasi-Aussie company. It would be unthinkable, un-Australian.And remember, we are the supplier of most raw materials that go into making a car.Nationalisation has become a dirty word in the runaway capitalistic western world where most things are based on short term planning and the fast buck. Look where that led.And with the current international economic problem unsolved, nationalisation is happening anyway even to the pillars of the capitalist system - they are begging for government money.But I suspect the nationalisation pill would be too bitter for us to swallow so at a local level the second scenario probably has more weight _ foreign ownership for Holden and Ford Australia. And we are talking Tata for Ford (possibly Ford the world including Australia) and a Chinese manufacturer for Holden, possibly SAIC which is in an expansionist mood, has plenty of funds and recently took over SsangYong.Tata has already shown its hand purchasing Land Rover and Jaguar - both formerly part of Ford's Premier Auto Group and the Indian company seems well provisioned with funds.China already has a hand in our “local” cars as suppliers of components like windscreens, brakes, lights, switches, wipers and other bits and pieces. They know what's going on here and no doubt would like a car making foothold in an advanced, western economy like ours.Then again, GM, Ford and Chrysler in the US could just shut up shop, hang up the gun and fade into the past. Vultures would be circling already and despite the worrying international situation, some have plenty of cash for a cheap buy-out - they only have to wait it out.Look no further than Japan or Korea for the wherewithall to pick the prime cuts of GM, Ford and Chrysler. Hyundai probably has eyes for Jeep and some of the Europeans could also be in a buy-out position at the right price - Mercedes Benz for GM Opel for instance. We won't have to wait long to find out..... 

General Motors, Ford and Chrysler are arguing for their share of the rescue money provided by the American government as they continue to suffer the biggest losses in motoring history.The Bush administration opposes their call for cash but a bill has been presented by the Democratic party to the country's Congress, which is also in transition following the landslide win by president-elect Barak Obama, to give them some short-term relief.If any deal is approved - which seems a longshot - it will include a provision that none of the money can be used to pay executive bonuses.These have been a multi-million dollar windfall for most senior executives at the Big Three for decades, but look to pass into history - at least until the river of red ink in Detroit is damed.The proposal for the $25 billion assistance package has created a political furore in the USA, where one side of politics says the Big Three only have themselves to blame and the other is trying to protect jobs and even the pension and health insurance entitlements of retired workers.A USA Today-Gallup poll shows the split, as a 47 per cent of adults said they believe loans and other help for carmakers is "not that important".Meanwhile, everything from paperclips to concept cars has been culled as General Motors fights for survival.The one-time world leader, which is now certain to be overtaken by Toyota on the 2008 sales charts, has slashed all non-essential spending and has even withdrawn from the Los Angeles Motor Show later this week.GM was planning to unveil a new Buick concept car and something exciting for Saab, but has pulled both cars and also decided to keep its senior executives away from the California car show.Ford and Chrysler are also expected to go low-key in LA, leaving import brands including Nissan and Mazda - which will reveal their all- new 370Z and Mazda3 - to make the running.But it is the GM cutbacks which are making news in the USA, as the company - which is losing billions each month - reduces spending on everything from stationary to company cars. It has cut all executive bonuses and raised prices for executive lease cars.GM has admitted it will run out of cash reserves by the end of the year.Chrysler has also eliminated bonuses and is pushing e-mail to save on paper costs, while Ford is not having any Christmas parties in 2008 and has slashed all non-essential staff travel. 

Jobs for GM is what Thomas Friedman is calling for in his NYTimes column. And unlike many others I totally agree. Matt Hardigree at Jalopnik thinks Friedman is on crack for the suggestion, because Steve Jobs knows nothing about the car industry.So…. obviously many of the current CEOs don’t know much about their own industry anymore. It has been changing for years, and like everything these days, at a rapid pace. Unfortunately the big manufacturers are full of inertia and there is nowhere near enough torque in the teams driving them to change direction.To quote Friedman; “somebody ought to call Steve Jobs, who doesn’t need to be bribed to do innovation, and ask him if he’d like to do national service and run a car company for a year. I’d bet it wouldn’t take him much longer than that to come up with the G.M. iCar.”While I think Jobs may need just a bit more than a year to turn things around ….. maybe two years. He is the man for the Job.Would he want to do it … who knows. His job at Apple is done. So he can relax. Retirement has been spoken about, as well as his premature demise in a leaked pre-prepared obituary. The analyst’s estimation of the effect on Apple upon his death or retirement is 20 billion dollars. Not bad to know what you are worth.The trouble with current global business model is that there are not enough Steve Jobs and too many Sol Trujillos. One is paid less than his worth and returns a profit. The other is paid virtually more than the company he runs makes. Imagine if Jobs took his traditional $1 salary plus share deal in GM. Also we would get to see Wagoner being shown the door… a CEO made responsible and shown consequences…. That is something we don’t see enough of.The automotive industry has had its fair share of great leaders. But there aren’t many around at the moment…. and it would appear none of them are in America. Germany has the family Piech, France has Ghosn and Italy has Montezemolo. If we look at Ferrari individually it has had far more than its quota of 1000hp individuals and 1000nM teams. Ferrari himself, Montezemolo, Todt, Schumacher…. All amazing team builders and powerful individuals. What has happened to all the great American leaders? There are Jobs and Obama. Who else?So I’ll add to Friedman’s call and raise with – “if he doesn’t take the job, GM is as good as dead.”Here in Australia that will mean Shanghai Motors Holden.

The hybrid-powered GMC Denali XT, a cross between a sports utility vehicle and a more traditional US style pick-up truck, was produced at GM Holden's design centre at Port Melbourne."This was a great program to work on as I was given the opportunity to really stretch the limits of the global rear-wheel-drive architecture and create a truck with unique and bold proportions," said lead designer Warrack Leach."GMC has such a rich heritage of producing great trucks and it was essential we kept that in mind while at the same time exploring how far we could take this concept."The Denali XT features a more efficient 4.9 litre version of GM's small-block V8, which has been combined with the company's two-mode hybrid propulsion system.Capable of running on all electric power at lower speeds, the concept vehicle provides for a 50 per cent fuel economy improvement over comparable small pick-up trucks.Although just a concept at this stage, GMC general manager Jim Bunnell said the Denali XT was perfectly suited to a variety of active lifestyle activities."Like all GMCs, the Denali XT is functional and capable, but it blends those traits with a more efficient, sporty driving experience," Mr Bunnell said."It is a vehicle that exemplifies GMCs engineering excellence, as well as GMs commitment to hybrid and advanced technologies."The vehicle will be on display at the Chicago Auto Show from February 6-17. Has Holden designed a ute that will take off in America?  

This month GM released the Hummer H3 and now Gympie-based right-hand-drive conversion company Performax International is unleashing two massive Yank utes.The first fully complianced 2008 Chevrolet Silverado and GMC Sierra utes have arrived with 4.5 tonne towing capacity.Performax International recently achieved Australian Design Rule compliance for the United States-built Silverado after completing design, engineering and conversion work in-house at its Gympie factory.The main model offered will be the Silverado 2500HD crew-cab four-wheel drive, priced at $123,000 plus on-road costs with a four-year/120,000km warranty and four-year roadside assistance. Other models from the extensive Silverado and sister GMC Sierra range are available on order.The 2500HD features crew-cab pick-up bodywork, GM Duramax 6.6 litre V8 turbodiesel power, Allison six-speed automatic transmission with high and low ranges and dashboard-selected four-wheel-drive engagement.Peak engine outputs are 272kW at 3200rpm and 895Nm of torque at 1600rpm.The Allison Adaptive Shift Control gearbox with manual over-ride includes a tow/haul mode, which alters shift patterns to maximise engine efficiency in pulling and braking. Tow/Haul mode also engages grade braking, which selects a lower gear to assist hill descents even when cruise control is operating.Performax International general manager Nick Vandenberg says the 2008 Chevrolet Silverado 2500HD is the answer for many heavy-duty and long-distance haulers in Australia.“The 2008 Silverado is a big step forward in performance, refinement, styling and comfort for this type of ute,” Vandenberg said. “With towing capacity at 4.5 tonnes, it's the big ute many people have been waiting for."“We had orders for almost 20 even before the ADR compliance process was completed and now we expect many more from both recreational and business buyers.“There is no other new vehicle like it on the Australian market, especially at a price within the range of many less capable 4WD wagons."“The new exterior and interior styling looks great and the cabin provides real comfort, with a spacious rear bench for three large adults, leather upholstery and the comfort and safety items usually found on passenger cars.”Performax International, formerly Corvette Queensland, has been importing and converting American cars for almost 20 years, developing an unequalled reputation for the quality of its engineering work and customer service.It employs more than 40 people and produces about 200 vehicles a year for Australian roads. 

General Motors has demonstrated the wisdom of US baseball player Yogi Berra's quip that, "it ain't over til it's over” by regaining its crown as the world's biggest car maker in the second quarter.Toyota toppled GM in the first three months of the year from the throne, which the Detroit car maker has occupied since 1931.But GM reported global sales of 2.4 million vehicles between April and June, putting it ahead of Toyota's 2.36 million.The Japanese group remains narrowly ahead over the first half of 2007 and is still widely expected to emerge in the top spot for the year as a whole, based on its forecast of global sales of 9.34 million units compared with GM's 9.2 million.GM's second-quarter comeback was due to surging sales outside North America, up from 1.36 million in the first quarter to 1.39 million in the second, equal to 58 per cent of total sales. Growth was strong in emerging markets.GM's sales in Russia more than doubled from a year earlier, driven mainly by its Chevrolet brand. Sales in Europe as a whole reached a new quarterly record. GM is also the biggest car maker in China, where Toyota has, until recently, been a relatively minor player. Brazil posted a 23 per cent jump.Both companies are struggling on their home turf.Toyota is confronted with a shrinking domestic market; GM has lost US market share to Asian and European rivals and is cutting back low-margin sales to the car-rental industry.Toyota's share of the US market, the world's biggest, grew to 16.1 per cent from 14.6per cent a year earlier, according to Autodata. GM's share slumped to 21.7 per cent inJune, its lowest level in decades apart from during a strike in 1998.Both companies have brushed off the closely watched rivalry.“We're more concerned about what the customer thinks about our products,” a GM spokesman said.Toyota has continued to stress its reputation for quality.Still, GM is not giving up its crown lightly, taking the view that the sales race should be judged on an annual and not a quarterly basis.Toyota on Friday said it was making efforts to ensure the impact of the Niigata earthquake on domestic production would not hit exports.All eight of Japan's car makers announced domestic production shutdowns last week due to supply problems at Riken Corp, which makes piston rings and seal rings for transmission parts. Riken's factories were damaged by last Monday's earthquake.The production setback highlights the low level of inventories Japanese car makers keep due to just-in-time delivery strategies.It could cost the industry about 65,000 units in production and Y100 billion ($937million) in revenue, according to Kurt Sanger, car industry analyst at Macquarie Securities in Tokyo. 

GM claims the new model is the most technologically advanced automobile ever built.It is the first vehicle to combine the hydrogen fuel-cell propulsion system with advanced technologies such as wheel-hub motors, steer- and brake-by-wire controls, a lightweight aluminium structure and lithium-ion batteries."General Motors is proving that advanced technology can remove the (car) from the environmental debate and reduce our dependence on petroleum," says GM's vice-president for research and development and strategic planning Larry Burns.And it's as green a concept as you'll find: the five-seat crossover SUV only emits water vapor and uses clean, renewable hydrogen as a fuel.It accelerates from 0-100km/hour in 10 seconds and features 70 per cent more torque, shorter braking distances and a range of 482km between fill-ups. The Sequel was first unveiled in 2005 at the North American International Auto Show in Detroit and at this stage is only a concept car.The Sequel joins the likes of the BMW Hydrogen 7 and the Mercedes A-Class and B-Class-based fuel-cell models.

The reason is that most hybrid transmissions use two electric motors/generators - one connected to the engine generates electricity to power the car while the other turns that electricity into motion.This "power split" system works well in the city but it means hybrids cannot run purely on petrol power. The electric generator and motor have to run all the time, even when the petrol engine is doing most of the work.This is less efficient than a conventional transmission in steady, highway speed driving.The "dual mode" hybrid transmission being developed by DaimlerChrysler, BMW and GM adds extra gears and clutches to the hybrid transmission to create an all-mechanical path from the petrol engine to the wheels.In highway driving, dual mode hybrids work the same way as transmissions in conventional cars.A dual mode hybrid uses the electric motor and generator only for accelerating and recovering energy in braking. At steady high speeds it is driven purely on petrol (or diesel) power.That might sound like a step backwards but it's actually an improvement in efficiency.The jointly developed dual mode transmission has four purely mechanical ratios for open road cruising on petrol/diesel as well as the infinitely variable electro-mechanical gearing range of a power-split hybrid for urban driving.