Dec 5, 2008 -
News From AutoObserver.com
Hi,
Here are some highlights from Edmunds’ AutoObserver.com this week. As always, there is more available directly on
www.autoobserver.com:
GM Wants as Much as $18 Billion; Prioritizes Brands
General Motors Corp. Tuesday released the plan submitted to Congress in application for federal bridge loans to carry the company through 2009, when it expects a host of structural improvements and general downsizing to create "a new General Motors, one that is lean, profitable, self-sustaining and fully competitive." GM’s plan includes a proposed reduction in brands, nameplates and retail outlets. What this means is somewhat fluid, particularly in terms of dealer reductions, but this much is evident: the Saab and Saturn divisions are earmarked for some type of departure and Pontiac seemingly will be deconstructed to a boutique-type brand. For more information on GM’s plan, visit http://www.autoobserver.com/2008/12/gm-wants-as-much-as-18-billion-prioritizes-brands.html
Funereal November Sales Provide More Ammo for Bailout Plea
In case members of Congress needed any more reminding why the domestic automakers are hat-in-hand before them this week, the 37 percent drop in November sales has provided them with the latest bleak snapshot of a moribund U.S. vehicle market. November sales were about 747,000 units compared with 1.2 million in November 2007, the lowest total sales for any month in at least 18 years. Every major manufacturer stumbled badly. For the year, U.S. auto sales were down more than 16 percent for the first 11 months, to 12.4 million from 14.8 million through November of last year. For more information on November sales results, visit http://www.autoobserver.com/2008/12/funereal-november-sales-provide-more-ammo-for-bailout-plea.html
Domestic Automakers Ease Off Incentives While Imports Rev Them Up in Pursuit of Market Share
Domestic automakers eased off the incentive gas in November while import automakers revved up incentives, according to Edmunds.com. "All three domestic automakers lowered their incentive spending this month, seeking to preserve cash during these incredibly tough times," said Jesse Toprak, Edmunds.com's executive director of Industry Analysis. "Meanwhile, the imports have poured more money into incentives, attempting to seize the opportunity to gain market share. Toyota's monthly incentives spend hit a new record high in November, and the company's market share might follow suit." For more information on current incentives, visit http://www.autoobserver.com/2008/12/domestic-automakers-ease-off-incentives-while-imports-rev-them-up-in-pursuit-of-market-share-edmundscom-reports.html
Potential for Swedish Intervention with Saab, Volvo Intensifies
Reports from Europe indicate the Swedish government may be considering an active role in assuring the continued future of Saab Cars and Volvo Car Corp., owned by GM and Ford, respectively. And Ford confirmed Monday it is exploring the possibility of selling Volvo - despite assertions earlier this year the company did not want to part with its Swedish division - saying in a press release the company "will re-evaluate strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker." For more information on this story, visit http://www.autoobserver.com/2008/12/potential-for-swedish-intervention-with-saab-volvo-intensifies.html
Feel free to share this message with others who want to stay up on auto industry news. And, please send your comments and questions to autoobserver@edmunds.com.
