GM says China sales nearly double in January

SHANGHAI (AP) -- Sales reports from major automakers, including GM and Toyota, suggest 2010 is shaping up to be another boom year for car sales in China, the world's biggest vehicle market.

General Motors Co. reported Thursday that it sold 219,192 vehicles in China in January, up 97 percent from a year earlier and a record for the month.
It was the first time monthly sales have surpassed 200,000, GM said in a statement.
"Demand in January was strong in nearly all market segments," Kevin Wale, president and managing director of the GM China, said in a statement. "It is a positive sign for 2010 as a whole following last year's industry record."
Sales in China by GM and its local partners rose 67 per cent to a record 1.8 million vehicles in 2009 amid tax cuts and incentives to help boost the industry.

Despite its troubles over a massive U.S. recall involving faulty gas pedals, Toyota Motor Corp. also saw sales climb in January, by 53 percent to 72,000 units, a company spokesman said Thursday.
Toyota announced a recall of 75,552 RAV4 sport-utility vehicles in China in late January due to the gas pedal problem. But Toyota's plans to expand in the market are unchanged, said Beijing-based spokesman Niu Yu.
Toyota expects its China sales to rise to 800,000 units this year, up from 709,000 in 2009, he said.
"In the mid- to long-term, the impact (from the recalls) on our business in China is limited," Niu said. "I feel confident we can achieve our sales goals," he said in a phone interview.

China's total vehicle sales soared 45 percent last year to an estimated 13.6 million, overtaking the U.S. as the world's biggest auto market.

Earlier this week, Ford Motor Co.'s joint venture in China, Changan Ford Sales Co., reported it sold 30,759 Ford brand passenger vehicles in January, a 128 percent increase over a year earlier and the twelfth straight month of year-on-year growth.
China is due to announce official auto sales figures next week.
Beijing spurred auto sales last year with a series of policies aimed at encouraging car owners to trade in older vehicles, in many case three-wheel trucks, for more fuel efficient small cars.

The recovery in the broader economy also buoyed demand, especially in inland regions that are growing more affluent as industries expand from the coastal areas to reach broader domestic markets.

In January, sales remained strong partly because families are buying cars ahead of the Feb. 14 Lunar New Year, the country's biggest holiday. But sales growth could slow in February, investment bank Credit Suisse said in a recent report.
It forecasts growth at more than 13 percent overall for this year.

The government's tax cuts and subsidies for small vehicle purchases were a boon to GM's minivehicle joint venture, SAIC-GM-Wuling, which sold 119,969 units in January, up 59.6 percent from the year before.
China has become a lifeline for GM as it struggles to regain profitability in the U.S. market. In January, the company rolled out several new models for China, including the Excelle XT, a coupe-like sedan.

"Our goal is to remain the market leader among global automakers in the world's largest vehicle market," Wale said.

GM's China flagship, Shanghai GM, saw sales jump 150 percent over a year earlier to 90,202, while Chevrolet sales surged 207 percent to 49,475 units.
By Elaine Kurtenbach, AP Business Writer , On Thursday February 4, 2010
Associated Press

General Motors: Brazil January Car Sales Up 11.2% On Year

SAO PAULO -(Dow Jones)- General Motors Co. continued its string of increasing car sales Thursday, this time in Brazil, according to the Brazilian Motor Vehicles Manufacturers Association, or Anfavea.

General Motors said it sold 11.2% more vehicles in January than it did in the same period last year, totaling 36,525 cars. The company's sport utility and Chevrolet brand pick-up sales did even better on the year, rising 42.9% to 7,589 units.

With the results, General Motors surpassed Volkswagen for the first time in more than a year as the No. 2 car seller in Brazil. Volkswagen sold 33,910 cars, down 10.6%.
In fact, out of the top four car makers in Brazil, only General Motors saw sales of passenger cars rise by double digit growth.

The leading auto maker, Italy's Fiat SpA, sold 0.4% more on the year to total 36,979 cars. Fiat's light passenger truck sales rose 27% to lead the market again at 8,230 units.

General Motors do Brasil Ltda said it does not comment on monthly sales.
General Motors lost its Brazil leadership status in 2004, when new Volkswagen and Fiat models quickly took over the market. General Motors was in third place throughout all of 2009, according to Anfavea.

January sales indicate a good start to the year for the company, a General Motors press official said Thursday. But GM will not be the only one to benefit in Brazil's auto market this year. The country sold a record number of vehicles in 2009 and expectations are for another record breaking year in 2010 as exports pick up from last year's global economic slowdown.
GM also will launch four new models in Brazil this year, giving the Brazilian subsidiary of the U.S. auto maker some extra punch this year.

All told, Brazil's auto market sold 213,312 vehicles in January, up 8% on the year, Anfavea said Thursday. Car makers sold less in January when compared with December, however, as companies and individuals rushed to year-end clearance sales at local car lots last month.

GM's sales declined the least month-over-month when compared with its two rivals, Fiat and Volkswagen. GM sales dropped 17.9% from December, while the European brands fell by more than 32% each.

GM has had a good week for global sales figures. Passenger vehicle sales rose 97% in China to 219,192 vehicles Thursday. China is General Motors' leading market. The U.S. also saw a good month for sales for the once-bankrupt car company, selling 13.6% more vehicles for a total of 146,825.

Brazil is General Motors' third largest market behind China and the U.S.

-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@ dowjones.com 02-04-2010

In the month of January 2010, General Motors India (GMI) managed to sell 9,421 units as compared to the 3,937 units sold in January 2009. The sales during January 2010 have been the highest ever recorded for the firm during its 13 year journey in India.

The firm managed to sell 3,477 units of the Spark, 2,825 units of the Beat, 1,512 units of the Tavera, 686 units of the Cruze 434 units of the Aveo U-VA, 364 units of the Aveo and 51 units each of the Optra and Captiva during January 2010.

motoroids.com

General Motors Co. has scrapped plans to relocate about 2,000 workers from the Renaissance Center after the state, city and Wayne County dangled more generous tax breaks that could top $221 million, sources said.
The automaker, and state and local officials have been negotiating to convince GM to drop plans to move about half of its work force out of the iconic RenCen in downtown Detroit as part of a broad facilities consolidation.

After weighing the cost and disruption of a broad office consolidation, GM will keep about 5,000 workers at the RenCenter.

"It's tens of millions of dollars by the time you do renovations and moves," said GM spokesman Tom Wilkinson. "We decided to spend that money on products and technology and relationships with customers."

In December, GM trimmed the number of workers it vowed to keep at its Renaissance Center headquarters to 2,000 from 2,500 despite the Michigan Economic Growth Authority (MEGA) offering a $50 million tax break. The authority has since upped the offer to as much as $200 million, according to a source.
"The state came up big," the source said.

Detroit Mayor Dave Bing has been involved in talks with elected officials and GM, and the city's Detroit Economic Growth Corp. and Downtown Development Authority are offering incentives that could range from $15 million to $21 million over a period of several years, the source said.

The city's tax package is tentative. The Downtown Development Authority could vote to approve the tax package within a month.

"Today's decision by GM is great news for the city of Detroit," Bing said today. "Retaining jobs is a top priority of my administration and I appreciate their commitment to the city."

Workers at the RenCen will be consolidated onto a smaller number of floors and the vacant space marketed to potential new tenants, GM's John Blanchard, executive director of worldwide real estate, told employees in an internal e-mail obtained by The Detroit News.

Part of the city's tax package would include incentives that could lure tenants to the RenCen.
"After a great deal of study, we believe that this plan will be the most effective in enabling GM to beat our business plan targets while maintaining a positive work environment," Blanchard wrote in the e-mail.

About 4,000 employees worked at the RenCen in December, but the 5,000 employees who will stay there include a number of consultants, accountants and other indirect workers. The Detroit News reported in October that GM had launched a formal review of its facilities in southeast Michigan as it considered moving some operations out of the RenCen and consolidating workers spread among facilities in Pontiac, Warren and Grand Blanc.

At the time, GM workers were mostly located in towers 100 and 300, but once the reshuffling was complete, there could have been as little as one tower occupied by the automaker.

All along, GM insisted the RenCen would remain the automaker's world headquarters.
Fourteen years ago, GM paid $75 million for the RenCen. The automaker later borrowed $500 million against it for a major remodeling and leased it back until May 2008, when it paid $626 million to take full ownership of the complex.

In fall 2008, GM tried to sell the RenCen again to raise funds and lease back office space, but a Detroit pension fund balked at a loan request and other funding was not available.

Detroit collects more than $6 million in taxes from GM and losing part of that revenue would compound problems for a city facing an approximately $300 million deficit.

Robert Snell / The Detroit News
February 05. 2010

Continued positive earnings and outlooks from major suppliers reflect a growing sense the worst is behind the auto industry, analysts said Friday.

"I'm very positive about the industry going forward," said Jim Gillette, supplier analyst with CSM Worldwide in Grand Rapids. "The industry has risen from the depths of despair from even six months ago."

American Axle & Manufacturing Holdings Inc. reported fourth-quarter earnings of $48.6 million compared with a $112.1 million loss a year ago. Net loss for the year was $253.1 million, far less than 2008's net loss of $1.2 billion.

"We expect to be solidly profitable in 2010," said Chief Financial Officer Mike Simonte.
The Detroit supplier expects 2010 revenue to increase as much as 40 percent to $1.9 billion to $2.1 billion. .

American Axle is anticipating growth from GM's large trucks this year, which includes new heavy-duty pickups due this spring. The supplier has a $1 billion backlog of business to 2014 and many are new orders for such brands as Volkswagen, Audi, Nissan, Tata and Mack truck.

Simonte said the supplier is erring on the side of caution and he would not be surprised to see GM's full-size trucks hit volumes as high as 900,000 units. and AAM has the capacity to handle any increased output needed.
Fixed operating costs have been reduced more than 50 percent over the last two years, said Chairman Richard Dauch.
"Many suppliers restructured to make money at 10 million (annual U.S. vehicle sales) so anything above it will mean significant profits," Gillette said.
Restructuring also helped Lear Corp., which spent $740 million doing that since mid-2005; spent time in bankruptcy last year; and ended 2009 with $1.6 billion in cash and less than $1 billion in debt.

The Southfield supplier reported fourth-quarter earnings of $116 million on $2.7 billion in sales, up from $2.6 billion. Lear expects global net sales this year of up to $10.7 billion and core operating earnings of $250 million to $350 million, said Chairman Bob Rossiter. The supplier has a $1.4 billion order backlog through 2012, Rossiter said.

Looking forward, "we definitely see signs of recovery and hope," American Axle's Dauch said.

February 06. 2010 1:00AM
Alisa Priddle / The Detroit News

Hat eigentlich schon jemand von euch ein paar GM Anleihen verkauft nach der Umbennenung/Umbuchung der Anleihen in GM liquidation? Hintergrund meiner Frage ist ob bei Kauf der Altanleihe vor 2009 heute Abgst Freiheit gegeben ist.

Danke!

GM investiert elf Milliarden Euro in Opel

Antrag auf Staatshilfe

Ein historischer Tag für Opel: Der US-Mutterkonzern General Motors (GM) hat bei Bund und Ländern Staatshilfen in Milliardenhöhe für die Sanierung seiner deutschen Tochter beantragt. Zudem stellt Opel-Chef Reilly derzeit den Sanierungsplan vor. Auf der einen Seite gehen Tausende Stellen verloren. Auf der anderen steckt GM Milliarden in die deutsceh Tochter.

HB BERLIN/FRANKFURT. General Motors will im Zuge der Sanierung von Opel bis 2014 elf Mrd. Euro in den Rüsselsheimer Autobauer investieren. Damit sollen 80 Prozent der Produkte erneuert werden, sagte Opel-Chef Nick Reilly am Dienstag bei der Vorstellung des Sanierungsplans in Frankfurt.

Der Plan sieht vor, dass Opel 2011 die Gewinnschwelle erreicht und 2012 wieder Gewinn macht. Europaweit sollen 8300 Stellen gestrichen und das Werk in Antwerpen geschlossen werden, bekräftigte Reilly.

Opel streicht nach Angaben von Nick Reilly in Europa 8 300 Stellen. Betroffen sind 1 300 Jobs in der Verwaltung und 7 000 in der Produktion. In Deutschland fallen 3261 Stellen weg. Am stärksten von den deutschen Standorten ist das Werk in Bochum mit 1799 gestrichenen Jobs betroffen.

Das Konzept gilt als Grundlage für eine Entscheidung der europäischen Opel-Länder über milliardenschwere Staatshilfen, die General Motors zum Umbau der Europatochter beantragen will. Bevor die einzelnen Regierungen grünes oder rotes Licht für Bürgschaften geben, soll jedoch die EU-Kommission das Konzept prüfen. Sie will einen Subventionswettbewerb vermeiden und sicherstellen, dass der Plan tragfähig ist. GM benötigt nach eigenen Angaben rund 2,7 Mrd. Euro an Staatshilfen.

Heute Morgen hatte GM bei Bund und Ländern Staatshilfen in Millionenhöhe beantragt. Insgesamt will General Motors in den europäischen Ländern mit Opel-Standorten rund 2,7 Mrd. Euro Staatshilfen einsammeln. Wie diese Summe zwischen Bund und Ländern aufgeteilt wird, sei Sache der Politik. Insgesamt will die US-Mutter General Motors (GM) in den europäischen Ländern mit Opel-Standorten rund 2,7 Mrd. Euro einsammeln.

Neben den Staatshilfen verlangt das Management von den Mitarbeitern einen Sanierungsbeitrag von jährlich 265 Mio. Euro in den Jahren 2010 bis 2014. Das lehnen Betriebsräte und Gewerkschaften derzeit ab, weil sie das Aus des belgischen Standorts Antwerpen nicht mittragen wollen und GM ihnen bisher keine Sicherheiten für ihre Beiträge angeboten habe.

Die Betriebsräte wehren sich auch gegen die Schließung der Getriebewerke in Kaiserslautern und Rüsselsheim. Die Verhandlungen stocken.

09.02.2010 wiwo.de

GM brings 1,000 jobs to hard-hit area

Delta Township -- In a throwback to an era when auto plant jobs made Michigan a land of riches, General Motors Co. intends to run its Lansing Delta Township plant day and night, Monday through Friday. GM, which plans to add a third shift at two other U.S. plants, contends it's a bold step in efficiency; some analysts say it's a risky move.

Regardless, the hiring of up to 1,000 workers for a late-night shift has created a minor boom in an area long battered by plant closings and job losses. The addition of a third shift in April will include 483 transplants from GM's Spring Hill, Tenn., assembly plant, which ended production in November.
The area, once home to GM's now dead Oldsmobile line, has not seen such a blast of new workers in a very long time.

"Everybody is just, like, super helpful and happy we're here," said Michele Barks, a Spring Hill transplant who began working at Lansing Delta Township last month in the paint department.

The Michigan plant makes the crossover Buick Enclave, GMC Acadia and a final batch of Saturn Outlooks, a product and brand that's being eliminated.
The plant will begin to produce the Chevrolet Traverse, formerly made at Spring Hill.
Barks is among the first wave of workers from Tennessee who are slowly being absorbed into the plant -- undergoing training in the classroom and on the line -- before the April launch.

Barks is a third-generation GM worker. She has survived two plant closings. Her father and grandfather worked at GM their entire careers.
"No one is more happy than me that I can keep a job," she said. "I love working at GM."
Tables in the plant corridors overflow with brochures and business cards from moving companies, restaurants, child care services and a couple of school districts.

"Every real estate agent, bank manager and all kinds of businesses have already called me," said Brian Fredline, president of United Auto Workers Local 602, which represents the plant on Lansing's west side. "It means we have survived after the worst crisis this company has had since the Great Depression."

The window outside Fredline's Lansing office overlooks an empty parking lot that was a GM complex before the buildings were razed in the past decade. Another Lansing plant that made Oldsmobiles shut in 2005.
"Those are painful examples that we abandoned the middle class and manufacturing base in this country," Fredline said.

Besides GM, a minor rebound in plant hiring is also expected at Ford Motor Co. and Chrysler Group LLC as U.S. vehicle demand begins recovering from last year's dismal levels, which hit a 47-year low.

Ford said a $450 million investment to build its next-generation hybrid models and its first plug-in electric cars in Michigan should create 1,000 jobs.

Chrysler hasn't given any details on its hiring plans.

GM also is adding a third shift at its Kansas City, Kan., and Fort Wayne, Ind., plants, restoring 2,400 jobs, GM officials said. Still, that's just a fraction of the 126,000 factory jobs the industry cut in the United States last year as it restructures and, in the case of GM, ends lines.

Beyond the Spring Hill transplants, the rest of the Lansing Delta Township jobs will be filled by laid-off GM workers from the Lansing area and 250 from outside it, which could mean more workers moving in. GM isn't hiring anyone new, and the jobs already have been filled.
About 140 of returning workers, initially hired in 2007 or after, will earn $14 an hour -- half of what their counterparts earn. The UAW agreed to that concession.
Most are grateful for the work, Fredline said."That's still a very good wage in this economy, and everyone knows if we could hire more at the wage, we'd have a line around the block," he said.

Area is excited

Any way you add it up, the additional plant shift is the biggest spurt of new workers in the area in a long time.
Lansing has welcomed several insurance companies, a hospital, a few small high-tech firms and growth at Michigan State University over the past decade, but the relocating Tennessee workers have excited the area.
"Up to 500 people and their families moving in a short period into the area, that is fantastic," said Lansing Mayor Virg Bernero.
"It's good for the economy. It's good for the soul."
Delta Township and Lansing share tax revenue from the plant, which is in the township.

Every auto job creates five other jobs in the community, according to the Center for Automotive Research in Ann Arbor.
They include Delta Township suppliers that already are preparing to hire to keep up with the third shift, said Township Supervisor Kenneth Fletcher.
"The impact is almost immediate," he said.

'It's a really good job'

Not everyone agrees that a third shift boosts capacity.
A few idle hours between shifts improves plant efficiency, allowing for restocking and cleanup, according to the influential Harbour Report, a consulting firm that studies the productivity of automakers.
Midnight-shift workers are more prone to on-the-job errors, absenteeism and illness, according to Circadian, a Boston consultancy specializing in round-the-clock operational challenges.

GM spokeswoman Heidi Magyar said the Lansing Delta Township plant has plenty of time to clean up on weekends and it's not hard to schedule maintenance of one section while another operates.
Some workers say the experts underestimate their enthusiasm.
"You get used it; sleeping most of the day," said Zane Meike, 37, a Lansing Delta Township worker who had worked a previous late-night shift.
"It's tough at first, but, you know, it's a really good job and no one here takes that for granted."

Louis Aguilar / The Detroit News , February 09. 2010 2:27PM

Chicago -- General Motors Co. is doing careful planning as it looks at adding third shifts to meet demand for products, a top official said Tuesday.
Mark Reuss, president of GM North America, said the company is looking at everything from short- and long-term capacity increases to manual body shop changes if it resolves capacity constraints.
Vehicles in demand include the Chevrolet Equinox, GMC Terrain, Cadillac SRX, Buick LaCrosse and large crossovers.

GM also is looking at whether a third shift is needed to make more Chevrolet Malibus. The Malibu outsold the Toyota Camry in January.
"We're starving now," Reuss said. For example, he said, there are only two Yukons currently available for sale. "But we need to add capacity responsibly," he said, and each plant must make money on its own.

Generally, "three shifts is a good idea when you have hot products," Reuss said on the eve of the Chicago auto show.
He said quality need not suffer in a three-shift operation, referring to critics who say running a plant 24 hours a day doesn't allow proper maintenance to ensure a quality product. A plant can stop production for a day, he said, if major maintenance is required.

Another factor in considering whether to increase capacity is sorting out how many dealers GM will have to sell the product, he said.
Last year, GM and Chrysler announced they would eliminate some dealerships. Since then, more than 1,100 GM dealers have filed appeals for arbitration hearings to restore franchises.

Meanwhile, Reuss said he will not single out Toyota's quality woes or participate in predatory activity. GM is offering $1,000 incentives to buyers who trade in a Toyota for a GM product, but Reuss said the program is an extension of its existing incentives for GM buyers.
Reuss said GM doesn't need additional incentives.
"We're not desperate," he said. "We have good products."

Alisa Priddle / The Detroit News February 10. 2010 1:12PM


GM to add second shift at Oshawa

General Motors Co. said it's installing a second shift and recalling as many as 700 workers at a Canadian plant that's adding the new Buick Regal sedan and a convertible version of the Camaro sports car.
The workers will be called back to the Oshawa, Ont., factory in this year's fourth quarter as it prepares for the additional models, Tony LaRocca, a spokesman, said in an interview. The plant now builds the Camaro and has been on overtime since June to meet demand, GM said.

"They need to do this," said Rebecca Lindland, an analyst at IHS Global Insight in Lexington, Mass. "They have been seeing some good sales results and the last thing you want to do is to run out of product and hurt that momentum."
Mark Reuss, GM's president for North America, is studying how to boost production after the Detroit-based company shut plants and reduced output ahead of its 2009 bankruptcy restructuring.

Katie Merx and Bill Koenig, Bloomberg Thursday, February 11, 2010

China auto sales more than double in January

GM Saving $10.7 Billion Means Cash for Trucks, 2010 Profit Goal

Feb. 16 (Bloomberg) -- General Motors Co. said it has slashed $10.7 billion from annual costs, freeing up money for marketing and vehicle upgrades while boosting Chief Executive Officer Ed Whitacre’s push for a 2010 profit.

The expense cuts include reduced interest payments from the elimination of debt, the offloading of union retiree bills and $6.7 billion from steps such as chopping jobs, getting rid of plants and dropping half of GM’s U.S. brands, according to company documents and Randy Arickx, a spokesman.

The estimate is the first public tally of GM’s savings from a new labor accord and its 2009 bankruptcy compared with the previous year. Uses for the proceeds include spending more on a redesign of the Chevrolet Silverado and GMC Sierra pickups that may cost as much as $1 billion, an executive directly involved with the plan said.

“GM has come to the realization that customers are more perceptive than the old GM used to think,” said Eric Noble, president of CarLab, an Orange, California-based automotive consultant that specializes in product planning. “The only way to win is to gain an advantage in product quality.”

New models still may not be enough to meet Whitacre’s goal of keeping U.S. market share at about 20 percent. Detroit-based GM will have to make up lost sales from shedding 4 of 8 domestic brands, overcome a history of 20 declines in U.S. market share in 23 years and erase any stigma in buyers’ minds from last year’s federal bailout.

Opel Cash

The biggest U.S. automaker also faces cash needs such as its Feb. 9 pledge to invest 11 billion euros ($15 billion) at Germany’s Opel by 2014. GM provided 650 million euros in fresh Opel funding in January through accelerated payments for engineering work.

Losses at GM totaled about $88 billion through last year’s first quarter from the end of 2004, spurring the effort in the automaker’s U.S.-backed restructuring to shrink operations to help return to profit.

“A new and better balance sheet” is driving the increases in spending on products and marketing, Vice Chairman Bob Lutz said in an interview, without giving figures. “You couldn’t exist in this business cutting marketing budgets to near zero.”

In addition to the $6.7 billion in savings from chopping so-called structural costs, GM reaped $1 billion more by shedding debt, with annual interest costs this year of about $1.5 billion compared with $2.5 billion in 2008, Arickx said.
A United Auto Workers contract provision that took effect Dec. 31 saved about $3 billion more by shifting retirees’ health costs to a UAW-run trust.

Whitacre Strategy

Diverting some of the $10.7 billion in savings to refresh GM’s vehicle lineup and lure new buyers is intended to support the strategy set by Whitacre, 68, who added the CEO’s title to his chairman’s duties on Dec. 1.
Investors and U.S. officials are watching because Whitacre has said he wants to repay $5.7 billion in outstanding federal loans by June and that GM may sell stock this year. On Jan. 6, he said he expects “positive net income” in 2009, accelerating predecessor Fritz Henderson’s timeline for a 2011 profit.
“I’m pretty bullish on GM,” said John Wolkonowicz, an analyst at Lexington, Massachusetts-based IHS Global Insight. “They have taken a lot of cost out and they are improving their products.”
GM more than doubled its budget for the large-truck program, in part because of the automaker’s savings, said the executive involved with the project, who asked not to be identified because the details aren’t public.

Truck Upgrades

The Sierra and Silverado, along with the Chevrolet Tahoe, GMC Yukon and Cadillac Escalade sport-utility vehicles, will receive new styling, more-efficient engines and lighter- materials to improve fuel economy, two executives said. Last updated for the 2007 model year, the trucks and SUVs originally were supposed to get only cosmetic improvements, one of them said.
A spokesman, Pat Morrissey, declined to comment about GM’s plans for truck changes.
GM’s additional resources also will help pay for developing new products such as the Cadillac XTS Platinum concept car, a large luxury sedan that may reach showrooms in 2013 and is intended to compete with models such as Bayerische Motoren Werke AG’s 7-Series. The XTS probably will include a plug-in hybrid version, said one of the executives.

A refreshed vehicle roster may allow GM to take advantage of the recalls that have spurred a U.S. sales freeze for eight models from Toyota Motor Corp., which seized the global sales crown in 2008. Adding production to meet any market-share gains or stronger industry demand would increase labor costs, said Renee Rashid-Merem, a GM spokeswoman.

Trimming Debt

GM had $46 billion in debt in 2008. Borrowings ballooned to $94.7 billion when the company was in bankruptcy last year, GM said on Nov. 14. The debt has been cut to $17 billion, half what Ford Motor Co. owed on Dec. 31.

As part of its restructuring, GM pushed through a plan to cut manufacturing plants to 34 at the end of this year from 47 in 2008. Dealerships were targeted to fall to 3,600 from 6,000 with the dumping of the Saab, Pontiac, Hummer and Saturn brands to focus on Chevrolet, Cadillac, Buick and GMC.

The savings in structural costs more than doubled the $5.1 billion reduction by Ford, the only major U.S. automaker to avoid bankruptcy last year.
Most of the savings for GM came in North America, the company’s Arickx said. Based on projected production in the region of 2.8 million vehicles, the benefit would equal about $3,800 for each car and light truck.

“A lot of the structural cost improvements were things that they left behind, like plants and brands that they didn’t need,” said Maryann Keller, president of Maryann Keller & Associates in Stamford, Connecticut. “That’s what bankruptcy is supposed to do.”

By David Welch bloomberg.com
Feb/16/2010 05:01