General Motors Sales Increase 21 Percent in November

Wed, Dec 1 2010

 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.

“Each brand came to the party in November,” said Don Johnson, vice president, U.S. sales
operations.  “These 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.

“November 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:

  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 37-
percent 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.

Ford, GM sales fare best

May '09 May '08 Change Share May '09 Share May '08
General Motors 190,098 266,744 -28.7 20.5% 19.1%
Ford Motor 155,620 205,270 -24.2 16.8% 14.7%
Chrysler 79,010 148,747 -46.9 8.5% 10.6%
Toyota 152,583 257,406 -40.7 16.5% 18.4%
Honda 98,344 167,997 -41.5 10.6% 12.0%
Nissan 67,489 100,874 -33.1 7.3% 7.2%
Hyundai 36,937 46,415 -20.4 4.0% 3.3%
Mazda 16,718 27,921 -40.1 1.8% 2.0%
Mitsubishi 4,352 10,430 -58.3 0.5% 0.7%
Kia 26,060 31,047 -16.1 2.8% 2.2%
Subaru 17,505 18,436 -5 1.9% 1.3%
Suzuki 2,585 10,364 -75.1 0.3% 0.7%
Mercedes-Benz 15,138 21,798 -30.6 1.6% 1.6%
Saab 783 2,148 -63.5 0.1% 0.2%
Volvo 5,577 7,238 -22.9 0.6% 0.5%
Volkswagen 36,313 43,504 -16.5 3.9% 3.1%
Audi 7,503 8,534 -12.1 0.8% 0.6%
BMW 18,383 25,469 -27.8 2.0% 1.8%
Porsche 1,979 2,796 -29.2 0.2% 0.2%
Isuzu ... 510 -100 NA NA
Jaguar 1,168 1,757 -33.5 0.1% 0.1%
Land Rover 2,223 3,003 -26 0.2% 0.2%
Mini 4,610 6,312 -27 0.5% 0.5%
Ferrari 85 143 -40.6 NA NA
Maserati 128 286 -55.2 NA NA
Bentley 159 251 -36.7 NA NA
Rolls Royce 26 21 23.8 NA NA
Maybach 3 9 -66.7 NA NA
Total 925,824 1,397,033 -33.7

Competitors
Direct Competitor Comparison  
GM PVT1 F TM Industry
Market Cap: 52.40B N/A 58.54B 123.76B N/A
Employees: 209,000 N/A 198,000 318,001 24.31K
Qtrly Rev Growth (yoy): 27.20% N/A -1.30% 5.80% 0.00%
Revenue (ttm): 131.04B 17.71B 1
133.36B 242.05B N/A
Gross Margin (ttm): 10.35% N/A 15.73% 13.39% 28.73%
EBITDA (ttm): 9.10B N/A 13.98B 22.96B N/A
Operating Margin (ttm): 1.66% N/A 6.54% 3.00% 7.26%
Net Income (ttm): 638.00M -3.78B 1
7.26B 6.63B N/A
EPS (ttm): 0.24 N/A 1.89 4.23 1.86
P/E (ttm): 147.38 N/A 8.92 18.67 N/A
PEG (5 yr expected): N/A N/A 0.42 0.60 N/A
P/S (ttm): 0.40 N/A 0.43 0.52 N/A
 
Pvt1 = Chrysler Group LLC (privately held)
F = Ford Motor Co.
TM = Toyota Motor Corp.
Industry = Auto Manufacturers - Major
1
= As of 2009  

Automakers Ranked By Sales  

Company Symbol Price Change Market Cap P/E
General Motors Corporation GM 34.93 0.43% 52.40B 147.38
Daimler AG Private - View Profile
Toyota Motor Corp. TM 78.93 -0.81% 123.76B 18.67
Ford Motor Co. F 16.86 2.42% 58.54B 8.92
Volkswagen AG Private - View Profile
Nissan Motor Co. Ltd. NSANY.PK 19.74 1.13% 41.30B 14.08
Honda Motor Co., Ltd. HMC 37.56 0.78% 67.69B 9.26
PSA Peugeot Citroen PEUGY.PK 39.40 0.00% 8.94B 14.32
Fiat S.p.A. Private - View Profile
Renault Private - View Profile
 

Competition
Due to GM's global presence and diversity of products, the company competes in one way or
another with every mass auto producer. As explained above, GM's non-U.S. operations are
managed with considerable independence from Detroit, often developing their own cars, funding
investment from in country profits, and negotiating for subsidies or bailouts with host country
governments.

GM continues to spend heavily on traditional advertising (including billboards and movie

placements), unlike many of its lighter Asian competitors. This New York City Escalade
billboard is six stories high.
Yet the biggest threat is still from foreign companies. The influx of foreign cars into the US
market has had huge ramifications for the Big Three. The UAW's old method of keeping the Big
Three in check, by demanding steep concessions whenever a clear leader seemed to emerge,
worked both to placate workers and to maintain balance in the US auto industry. However,
foreign companies now account for more than half of the US auto market. Now, UAW demands
do no more than put Big Three companies at a direct and pronounced disadvantage.

Foreign companies like Toyota and Nissan are poised to dominate the mainstream, small- to
medium-sized car market with their flexibility, cheaper prices, and (in Toyota's case), early
investments in fuel efficiency. Cars like the highly successful Toyota Prius are a big challenge
for GM's own Saturn hybrids. GM will also have to fight these newcomers in what remains of its
highly lucrative gasoline-based SUV/trucks sector.
General Motors
The General Motors Company (NYSE: GM, TSX: GMM.U) is an American automaker with
its headquarters in Detroit, Michigan. General Motors, the world's second largest automaker,[3]
traces its roots back to 1908. With its global headquarters in Detroit, GM employs 205,000
people in every major region of the world and does business in some 157 countries. General
Motors produces cars and trucks in 31 countries, and sell and service these vehicles through the
following divisions: Buick, Cadillac, Chevrolet, GMC, Opel, Vauxhall. GM's OnStar subsidiary
provides vehicle safety, security and information services.

General Motors is headquartered at the Renaissance Center in Detroit. It employs approximately

266,000 people around the world. In 2009, General Motors sold 6.5 million cars and trucks
globally. General Motor's biggest success has been in the People's Republic of China, where its
sales rose 66.9 percent in 2009, selling 1,830,000 vehicles and accounting for 13.4 percent of the
market.[4]

History
The company was first founded on September 16, 1908, in Flint, Michigan, as a holding
company for Buick, then controlled by William C. Durant. GM's co-founder was Charles Stewart
Mott, whose carriage company was merged into Buick prior to GM's creation. Over the years
Mott became the largest single stockholder in GM and spent his life with his Mott Foundation,
whose benefit was shone on the city of Flint, his adopted home. It acquired Oldsmobile later that
year. In 1909, Durant brought in Cadillac, Elmore, Oakland and several others. Also in 1909,
GM acquired the Reliance Motor Truck Company of Owosso, Michigan, and the Rapid Motor
Vehicle Company of Pontiac, Michigan, the predecessors of GMC Truck. Durant lost control of
GM in 1910 to a bankers' trust, because of the large amount of debt taken on in its acquisitions
coupled with a collapse in new vehicle sales.

The longest-lived continuous automobile nameplate still in production is the Chevrolet Suburban
The next year, Durant started the Chevrolet Motor Car Company and through this he secretly
purchased a controlling interest in GM. Durant took back control of the company after one of the
most dramatic proxy wars in American business history. Durant then reorganized General
Motors Company into General Motors Corporation in 1916. Shortly after, he again lost control,
this time for good, after the new vehicle market collapsed. Alfred P. Sloan was picked to take
charge of the corporation and led it to its post-war global dominance. This unprecedented growth
of GM would last into the early 1980s when it employed 349,000 workers and operated 150
assembly plants.

GM has led global sales for 77 consecutive years (1931 to 2008), longer than any other
automaker.[5]

[edit] Brand reorganization

As part of General Motors Corporation's reorganization as General Motors Company, the content
and the structure of its brand portfolio (its brand architecture) is also being reorganized.[13] Some
nameplates like Pontiac, Saturn, Hummer, and service brands like Goodwrench were
discontinued. Others, like Saab, were sold.[14] The practice of putting the "GM Mark of
Excellence" on every car, no matter what the brand, was discontinued in August, 2009.[15] The
company has moved from a corporate-endorsed hybrid brand architecture structure, where GM
underpinned every brand to a multiple brand corporate invisible brand architecture structure.[16]
The company's familiar square blue "badge" has been removed from the Web site and
advertising, in favor of a new, subtle all-text logo treatment.[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 (%) 1 North America 3,552 21.9%
 United People's
1 2,981 22.1%
States 2 Republic of 1,095 12.0%
China China
2 1,095 12.0%3 European Union 905 12.3%
(PRC)
3  Brazil 549 19.5%4 South America 815 20.8%
 United
4 384 15.4%
Kingdom
 Canad
5 359 21.4%
a
6  Russia 338 11.1%
 Germa
7 300 8.8%
ny
  Mexic
8 212 19.8%
o
 Austral
9 133 13.1%
ia
 South
10 117 9.7%
Korea
11  France 114 4.4%
12  Spain 107 7.8%
 Argent
13 95 15.5%
ina
 Venez
14 91 33.3%
uela
 Colom
15 80 36.3%
bia
16  India 66 3.3%

[edit] Sales figures

Calendar Year U.S. sales Chg/yr.

1998[18] 4,603,991
1999 5,017,150 9.0%
2000 [19]
4,953,163 1.3%
2001 4,904,015 1.0%
2002 4,858,705 0.9%
2003 4,756,403 2.1%
2004 [20]
4,707,416 1.0%
2005 4,517,730 4.0%
2006 [21]
4,124,645 8.7%
2007 3,866,620 6.3%
2008 [22]
2,980,688 22.9%
2009 [23]
2,084,492 30.1%

World presence
GM World Headquarters

[edit] North America

In North America, GM will focus primarily on its four core brands — Chevrolet, Cadillac,
Buick, and GMC — while selling, discontinuing, or scaling back its other brands. The White
House characterized the GM restructuring as a shift toward a new leaner, greener GM, which
will aim to break even with annual sales much lower than previously stated.[36] President Obama
declared that the restructuring "will mark the end of an old GM, and the beginning of a new GM;
a new GM that can produce the high-quality, safe, and fuel-efficient cars of tomorrow; that can
lead America towards an energy independent future; and that is once more a symbol of
America's success."[37]

In the middle of 2005, 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. However, in 2009 the "New GM" reversed this, saying that
emphasis on its four core brands would dictate downplaying the GM name.[38]

[edit] Asia

The Buick brand is especially strong in China, led by the Buick Excelle subcompact. The last
emperor of China owned a Buick.[39] The Cadillac brand was introduced in China in 2004,
starting with exports to China. GM pushed the marketing of the Chevrolet brand in China in
2005 as well, moving the former Buick Sail to that marque. The company manufactures most of
its China market vehicles locally through Shanghai GM, a joint venture with the Chinese
company SAIC, which was created on March 25, 1997. The Shanghai GM plant was officially
opened on December 15, 1998, when the first Chinese-built Buick came off the assembly line.
The SAIC-GM-Wuling Automobile joint-venture is also successfully selling microvans under
the Wuling marque (34 percent owned by GM).

In August 2009 the joint venture of FAW GM Light Duty Commercial Vehicle Co Ltd was
formed that mainly produces Jiefang light-duty trucks.[40]

GM increased its sales in China by 68 percent to 230,048 vehicles in March 2010, outsold its
U.S. sales of 188,546 by 22 percent. And the company said it is “on track” to sell more than 2
million vehicles in China in 2010, four years ahead of its plan.[41][42]Blumenstein, Rebecca
(October 30, 2007). "GM to Invest in Green Technology in China". WSJ.
http://online.wsj.com/article/SB119365251905674678.html. Retrieved November 7, 2010.

GM made Cadillac a chief sponsor of the state-run China Film Group Corporation's Birth of a
Party, a film dramatizing the events leading to the creation of the Chinese Communist Party in
1921 after Russia’s October Revolution in 1917.[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. In the mid of the 1950s, GM withdrew from the
Egyptian market. Some year later, the Ghabbour Brothers began to assemble Cadillac, Chevrolet
and Buick models up to the 1990s.

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. The
Speranza Motors is a big company which started in the 1990s with the SKD assembling of
Daewoo cars. Today the main products of Speranza are from the Chinese Chery concern.

[edit] Racing heritage

GM has participated over the years in the World Touring Car Championship (WTCC), Le Mans,
Nascar, SCCA, and many other world venues.

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,
winning many races in the small V-8 class. GM has also done much work in the development of
electronics for GM auto racing. An unmodified Aurora V-8 in the Aerotech, captured 47 world
records, including the record for speed endurance in the Motorsports Hall of Fame of America.
Recently, the Cadillac V-Series has entered motorsports racing. GM has also used many cars in
the American racing series NASCAR. Currently the Chevrolet Impala is the only entry in the
series but in the past the Pontiac Grand Prix, Buick Regal, Oldsmobile Cutlass, Chevrolet
Lumina, Chevrolet Malibu, and the Chevrolet Monte Carlo were also used.

In Australia, there is the V8 Supercar Championship which is battled out by the two main rivals
of (GM) Holden and Ford. The current Holden Racing Team cars are based on the Holden
Commodore and run a 5.0-litre V8-cylinder engine producing 635 bhp (474 kW). These cars
have a top speed of 294 km/h (183 mph) and run 0–100 km/h in 3.8 seconds. The Holden Racing
Team is Australia's most successful team in Australian Touring Car History. In 2006 & 2007, the
Drivers championship was won by the very closely linked HSV Dealer Team.

[edit] Philanthropy
Since 1996, General Motors has been the exclusive source of funding for Safe Kids USA's "Safe
Kids Buckle Up" program, a national initiative to ensure child automobile safety through
education and inspection.[44] Through 2002, the Pace Awards program led by GM, EDS, and
SUN Microsystems, gave over $1.2 billion of in-kind contributions which includes computers to
over 18 universities to support engineering education.[45] In 2009, the GM led group has helped
the Pace Awards program worldwide.[46] General Motors is a leading contributor to charity. In
2004, GM gave $51,200,000 in cash contributions and $17,200,000 in-kind donations to
charitable causes.[47]

[edit] Research and development

GM R&D was the world’s first automotive research center. It was organized in 1920 by inventor
Charles F. Kettering.

Headquartered in Warren, Michigan, the GM Research Lab is a network of six laboratories, six
science offices and collaborative relationships in over twelve countries including working
relationships with universities, government groups, suppliers and other partners from across the
globe.

[edit] Small car sales

Chevrolet Aveo Concept

As part of General Motors Company development, it plans to revive one of its idled U.S.
factories for the production of a small car in Orion, Mi with the creation of 1,200 American jobs.
This will be first time ever a large manufacture producing a Supermini vehicle in the United
States. 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. This retooled plant will be capable of building
160,000 cars annually, including both small and compact vehicles.[48]

[edit] Environmental commitment

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. In 2008 General Motors committed to engineering half of its manufacturing
plants to be landfill-free. In order to achieve its landfill-free status, production waste is recycled
or reused in the manufacturing process.

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 Zaragoza solar installation covers about 2,000,000 sq.
ft. of roof at the plant and comprises about 85,000 solar panels.

[edit] Environmental principles

General Motors have a published policy that includes committments to

1. actions to restore and preserve the environment

2. reduce waste and pollutants, conserve resources, and recycle materials at every stage of the
product life cycle

3. participate actively in educating the public regarding environmental conservation.

4. pursue vigorously the development and implementation of technologies for minimizing

pollutant emissions.

5. continue to work with all governmental entities for the development of technically sound and
financially responsible environmental laws and regulations.

6. 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.

[edit] Environmental initiatives

The company has long worked on alternative-technology vehicles, and has recently led the
industry with ethanol burning flexible-fuel vehicles that can run on either E85 (ethanol) or
gasoline. The company was the first to use turbochargers and was an early proponent of V6
engines in the 1960s, but quickly lost interest as the muscle car race took hold. They
demonstrated[49] gas turbine vehicles powered by kerosene, an area of interest throughout the
industry, but abandoned the alternative engine configuration in view of the 1973 oil crisis. In the
1970s and 1980s, 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. In 1987, GM, in conjunction
with AeroVironment, built the Sunraycer, which won the inaugural World Solar Challenge and
was a showcase of advanced technology. 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.

GM supported a compromise version of the Corporate Average Fuel Economy (CAFE) standard
increase from 27 mpg-US (8.7 L/100 km; 32 mpg-imp) to 35 mpg-US (6.7 L/100 km; 42 mpg-imp), the
first such increase in over 20 years.[50]

[edit] Hybrid electric vehicles

Chevrolet Tahoe Hybrid

In May 2004, GM delivered the world's first full sized hybrid pickups, the 1/2-ton
Silverado/Sierra. These hybrids did not use electrical energy for propulsion, like GM's later
designs. In 2005, the Opel Astra diesel Hybrid concept vehicle was introduced. The 2006 Saturn
Vue Green Line was the first hybrid passenger vehicle from GM and is also a mild design. GM
has hinted at new hybrid technologies to be employed that will be optimized for higher speeds in
freeway driving.

GM currently offers the two-mode is used by the Chevrolet Tahoe/GMC Yukon and will later be
used on the Saturn Vue (cancelled), Cadillac Escalade, GM 1/2-ton pickups and possibly other
vehicles.[51]

GM has recently introduced the concept cars Chevrolet Volt, which is an electric vehicle with
back-up generators, powered by gasoline, E85, or fuel cells. According to GM, a production
Chevrolet Volt will be available by late 2010 as a 2011 model.[52]

The GM Magic Bus is a hybrid powered bus.[53]

[edit] All-electric vehicles

General Motors was the first American company (in the modern era) to release an all-electric
automobile. In 1990, GM debuted the revolutionary "Impact" concept car at the Los Angeles
Auto Show. It was the first car with zero-emissions marketed in the US in over three decades.
The Impact was eventually produced as the EV1 for the 1996 model year. It was available
through dealers located in only a few regions (e.g., California, Arizona, Georgia). Vehicles were
leased, rather than sold, to individuals. In 1999 GM decided to cease production of the vehicles.
When the individual leases had expired, they declined to renew the leases or allow the lessors to
purchase them. All of the EV1's were eventually returned to General Motors and, with the
exception of a few which were donated to museums, all were destroyed.

General Motors has announced that it is building a prototype two-seat electric vehicle with
Segway. An early prototype of the Personal Urban Mobility and Accessibility vehicle—dubbed
Project P.U.M.A. – will be shown off in New York a day ahead of the press previews for the
2009 New York International Auto Show.[54]
[edit] Battery packs for electric vehicles

GM builds battery packs in southern Michigan.[52] GM also established an automotive battery

laboratory in Michigan.[55] GM will be responsible for battery management systems and power
electronics, thermal management, as well as the pack assembly. Finally an existing GM facility
at Brownstown Township was chosen to be upgraded as battery pack plant.[52] LG Chem's U.S.
subsidiary, Compact Power of Troy, Michigan, 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.

[edit] Hydrogen initiative

Sequel, a fuel cell-powered vehicle from GM.

GM has prided its research and prototype development of hydrogen powered vehicles,[52] to be
produced in early 2010, using a support infrastructure still in a prototype state. The economic
feasibility of the technically challenging hydrogen car, and the low-cost production of hydrogen
to fuel it, has also been discussed by other automobile manufacturers such as Ford and Chrysler.

In June 2007, Larry Burns, vice president of research and development, said he's not yet willing
to say exactly when hydrogen vehicles will be mass produced, but he said it should happen
before 2020, the year many experts have predicted. He said "I sure would be disappointed if we
weren't there" before 2020.[56]

[edit] Flexible-fuel vehicles

GM produces several flexible-fuel vehicles that can operate on E85 ethanol fuel or gasoline, or
any blend of both. Since 2006 GM started featuring a bright yellow gas cap to remind drivers of
the E85 capabilities,[57][58][59][60] and also using badging with the text "Flexfuel/E85 Ethanol" to
clearly mark the car as an E85 FFV.[61][62]

GM is the leader in E85 flex fuel vehicles, with over 3 million FlexFuel vehicles on the road in
the U.S. As of 2009, GM offers 18 ethanol-enabled FlexFuel cars and trucks in the US, and
produce more than one million new FlexFuel vehicles. GM's goal is to have half of their annual
vehicle production be E85 or biodiesel capable by 2012.
GM whacks 1,100 dealers
NEW YORK (CNNMoney.com) -- General Motors notified 1,100 of its 6,000 dealerships Friday
that it is terminating their contracts with the struggling automaker, the first step in cutting up to
40% of its retail network.

GM spokeswoman Susan Garontakos said that the dealers receiving notice Friday are being told
that their contracts will not be renewed in October 2010. Many of them are expected to close
shop this year.

The company is likely to cut another 900 and eventually get its network down to between 3,600
and 4,000 dealers by next year, GM vice president Mark LaNeve said.

Of the 900, about 500 will come from GM's plans to sell or close four brands - Saturn, Hummer,
Saab and Pontiac. Another 400 dealers will be eliminated in a second cut as GM continues to
restructure.

On top of the dealers GM is cutting, LaNeve said another 400 will be lost through attrition and
consolidation. 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.

The company's expectation is that the surviving dealerships will become larger and more
profitable as a result of the thinning out, which in turn will allow them to spend more on
advertising and facilities. But GM also acknowledges that its long-term decline in U.S. market
share will continue as a result of the smaller network of dealers.

Between 400 and 500 of the dealers notified Friday sold an average of only 35 vehicles a year, or
about three a month.

The rest of the dealers on the list also had very low average sales by industry standards - only
about five or six vehicles a week. In total the 1,100 dealers sold about 7% of GM's sales volumes
last year.

"These are dealerships that were hurting, in danger of going out of business anyway," said
LaNeve. "It [the letter] shouldn't be a surprise to them."

Business failures and purchases of dealerships by larger dealers has already shaved GM's
dealership ranks by about 300 this year, Garontakos said.

GM will be facing a serious problem if the majority of the dealers decide to quit the business in
the near term. That's because under their contracts, GM would then be required to repurchase the
65,000 cars they have in their collective inventory.

"It would be a huge cash flow hit," LaNeve said about difficulty in GM having to repurchase or
resale all those vehicles. "Supply and demand would really take down resale values."
The move comes a day after Chrysler LLC announced that it is dropping nearly 800 Chrysler,
Dodge and Jeep dealers, or about a quarter of its network, as part of its bankruptcy restructuring.
The Chrysler dealerships agreements will be terminated around June 9, assuming the move is
approved by the bankruptcy court. Under terms of the bankruptcy filing, Chrysler would not
repurchase their inventory or pay anything for their closure.

GM (GM, Fortune 500) is not yet in bankruptcy court, although CEO Fritz Henderson has said
such a filing is "probable." The company has until the end of the month to win agreement from
creditors, unions and dealerships on a turnaround plan. If it fails to do so, the Treasury
Department, which has been bankrolling GM's ongoing losses, has said it will force the company
to file for bankruptcy.

Buffalo, N.Y.,-area auto dealer Duane Paddock, chairman of the GM dealer council, said he
hasn't even seen the list of 1,100 dealers. He said that he had heard from two dealers who got the
letters Friday and neither was surprised.

"I've got to think that some dealers will look at this and say, 'It's time for me to go.' Others may
go out and look for another franchise," Paddock said. "One of the things it does is give them time
to make a good decision."

Paddock said it's too bad that GM has reached the point where it needs to cut dealerships, but
that the remaining dealerships will be more profitable as a result.

"One thing that was evident was that there were too many dealers and the pie just wasn't big
enough," Paddock said.

GM, Chrysler and Detroit rival Ford Motor (F, Fortune 500) have far larger U.S. dealer networks
than their Asian rivals, a remnant to the days when the so-called Big Three dominated the market
in a way they no longer do.

The National Automobile Dealers of America estimates that GM's cuts will affect about 63,000
employees of those dealerships. By comparison, GM employees about the same number of union
workers in its factories.

LaNeve said he knows many of the affected dealers personally.

"This isn't easy for anybody," he said. "But for the survival of the enterprise you have to put a
strong plan in place. That's the goal here."

NADA and various dealership organizations at GM and Chrysler are fighting the cuts, lobbying
Congress and hiring bankruptcy attorneys to argue their case. The dealers hope that state
franchise laws may still protect them, despite the powers granted to the bankruptcy court and the
demand for cuts by the Treasury Department.

"We view GM's action with a profound sense of sadness and disappointment," NADA said in a
statement. It said the company's problems are "no fault of the dealers, who are, in many cases,
family-run businesses that have been loyal partners with GM -- through good times and bad --
for multiple generations."

Bruce Spencer, a partner at the Smith Law Firm in Helena, Mont., and an expert in dealer
franchise law, said he believes many dealers will have a strong court case fighting the
termination as long as GM stays out of bankruptcy court.

GM's big losses might not be seen as "good cause" for terminating the dealer contracts, Spencer
said. The dealers' chances in court drops dramatically if GM files for bankruptcy, he added.

The names and locations of all 1,100 dealers was not publicly released Friday. GM had
previously said it would likely cut in major metropolitan and suburban areas, where it
acknowledges that "dealership overcapacity is most prevalent."

Some of the dealers that survived Friday's cuts expressed relief.

Judy Schumacher-Tilton, who operates two Chevrolet dealers in the New Jersey suburbs of New
York City, said she had been confident that her sales volume would allow her to survive, but
admitted "everyone had fear."

One of her dealerships, Schumacher Chevrolet, is a single-brand operation on a downtown main

street, rather than a multi-brand dealership on a highway. Many experts had speculated the
downtown and single-brand dealers were most at risk of closure.

"I was trying to be positive that GM would make the right decision," said Schumacher-Tilton,
whose father started one of the dealerships she operates 72 years ago. "I'm going to be here
another 70 years."  

General Motors Sets Price for Volt; Demand Likely to

Exceed Supply
Submitted by Editor on Tue, 07/27/2010 - 11:11am
in

 all states
 plug-in cars
PHOTO CREDIT: SOLAR HOME & BUSINESS JOURNAL
The Chevrolet Volt, with a starting
suggested retail price of $41,000, will be
"packed" with premium and innovative
features, GM says.

Published July 27, 2010

The long-awaited pricing for the 2011 Chevrolet Volt has been announced: $41,000 is General
Motors' suggested retail price.

Orders are now being taken from participating Chevrolet dealers. Customer deliveries are
scheduled to begin late this year, but they will be few in number, as the initial production runs
are limited.

With a full federal tax credit, the extended-range electric vehicle's suggested retail price is
$33,500. Incentives in some states can reduce the price further; California's $5,000 rebate, if it
applies, would drop the suggested retail price to $28,500.

Leases will begin at $350 a month for 36 months, with $2,500 due at the lease signing, based on
current conditions, GM said.

"The Chevrolet Volt will be the best vehicle in its class … because it’s in a class by itself,” said
Joel Ewanick, vice president of U.S. marketing for General Motors, who made the
announcement at the Plug-In 2010 conference in San Jose, Calif. “No other automaker offers an
electrically driven vehicle that can be your everyday driver, to take you wherever, whenever. The
Volt will be packed with premium content and innovation, standard."

The Volt will be initially available to Chevrolet customers in California, New York, Michigan,
Connecticut, Texas, New Jersey and the Washington, D.C., area. To be among the first to
purchase a Volt, customers can visit their nearest participating Chevrolet Volt dealer.

General Motors said a Volt dealer locator would be available sometime today, July 27, at
http://www.getmyvolt.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.
For customers needing general Volt information, Chevrolet will have a team of Volt advisors

available to answer questions starting today at

1-888-8... .

Interested customers who tarry may not have a chance to obtain a Volt until 2013 at the earliest.
Total 2011 production is scheduled to be 10,000 cars, and 2012 production is expected to total
about 30,000 Volts.

"There is excess demand out there; we have limited product," Mr. Ewanick said at the San Jose
conference.

Tony DiSalle, the Volt's marketing director, said in an Internet conference later Thursday, "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.

Although Mr. DiSalle did not mention it, one possible trajectory for the Volt is an accelerated
production schedule in 2012 if all goes well during the first year of consumer use. General
Motors has the capability to ramp up production of the car should that prove desirable.

The company chose to price the Volt for sale initially at the high end of its range of possible
pricing points, loading it with such standard amenities as five years of its OnStar
communications and diagnostic system, a premium stereo system, electronic traction control,
antilock brakes, a 7-inch touch-screen navigation display, Bluetooth wireless device
connectivity, eight air bags for passenger safety, and more.

"We wanted to make the Volt ownership experience unlike anything we’ve done at Chevrolet,
because the Volt is unlike any vehicle we’ve offered," Mr. DiSalle said in a news release. "We
want customers to fully enjoy the Volt lifestyle by providing unprecedented connectivity to their
vehicle through the Volt mobile app."

The Volt contains both an electric propulsion system and a 1.4-liter, four-cylinder engine that
will use premium gasoline. The car will have a range of roughly 40 miles, depending on terrain,
climate and driver habits, using electric power only. When the 16-kilowatt-hour battery pack
begins to run low, the gasoline engine turns on to recharge the battery and extend the car's range
by an additional 300 miles or so.

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, and Mr. DiSalle and Tony
Posawatz, GM's vehicle line director for the Volt, stressed in the Internet discussion that
recharging the battery with renewable electricity is a major aim of the car's developers.

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.  Many used automotive battery packs are expected to have extended service lifetimes
storing electricity for household use. For more information on that topic, please see our stories
"With Plug-Ins, a Second Life for Batteries May Save the Day" and "Solar Home of the Future,
With EV in the Garage, Makes Debut."

The Volt battery pack will come with an eight-year, 100,000-mile warranty, and is designed for
up to 150,000 miles of driving, Mr. Posawatz said.

The maximum charge time using a standard household 120-volt outlet will be about nine or 10
hours. 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.

In some states, 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, especially at
peak demand times of the afternoon and early evening. Such rate plans may start to become
mandatory a few years from now.

"We would gladly use that battery to collect all that wonderful green electricity" when it is
available, Mr. Posawatz said in the Internet discussion.

Depending on their tax obligations, owners of the Volt and other plug-in electric vehicles can
qualify for up to $7,500 in U.S. federal income tax credits, as well as other potential state and
local tax credits or rebates, depending on location. Owners in certain states may qualify for
access to high-occupancy vehicle lanes.

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, but a total of 4,400 Volt
buyers in launch markets could be eligible for a free 240-volt charging station, including home
installation.  The installations are part of a program developed by the U.S. Department of Energy
to install approximately 15,000 240-volt home charging stations across the country.

While General Motors was announcing pricing for the Volt, Nissan North America was
announcing its U.S. rollout plan for the battery-powered Nissan Leaf. The car will be available
first to consumers in December in California, Washington, Oregon, Arizona and Tennessee.
These states are part of the EV Project, a plan to deploy thousands of electric vehicles and
charging stations at the same time. The EV Project is a result of a partnership with charging
infrastructure provider ECOtality and is partially funded by a grant from the U.S. Department of
Energy. Customers in the first five launch states, who represent more than 55 percent of total
Nissan Leaf reservations, will be able to place firm orders for the car starting in August.

The Leaf will be introduced in Texas and Hawaii in January 2011. North Carolina, Florida,
Georgia, the District of Colombia, Virginia, Maryland, South Carolina and Alabama will follow
in April 2011. The car is to be rolled out to the balance of the nation beginning in fall 2011, with
availability in all markets nationwide by the end of that year. The Leaf, which has a 24-kilowatt-
hour battery pack and an all-electric range of about 100 miles, will also have an eight-year,
100,000-mile battery warranty, Nissan announced.
The base price for a Leaf will be $32,780; with a maximum federal tax credit of $7,500, the price
will be $25,280. State or local incentives also will be available for the Leaf. In California, the
base price will be as low as $20,280 including the state rebate.

There will be limited options available with the Volt: Options will include leather seating and
interior appointments, special styled wheels, and a backup camera.

Mr. DiSalle said General Motors sees "nothing but upside and a whole bunch of cool stuff to
come from this game-changing car."

Mr. Posawatz said of the Volt: "They're wonderful and fun to drive," adding,  in reference to
himself and Mr. DiSalle, "Here in high-tech Silicon Valley, a couple of Midwestern guys showed
how it's done."