GM Sells Stake in Suzuki to Raise Cash

In an attempt to free up some extra cash, General Motors has just sold off its entire stake in Suzuki Motor Corporation. The sale of GM’s stake in the Japanese automaker has freed up $230 million in cash, which will help the company stay afloat while it continues to lobby on Capitol Hill for a government bailout.

Suzuki bought back the 3.02 percent stake that GM help, while the US automaker, along with Ford and Chrysler, attempt to hold on to momentum as bankruptcy looms and the current economy continues to cause devastating problems for the auto market. GM's decision follows similar decisions by Ford Motor Company, where dealers such as Ford of Brattleboro watched idly as the automaker ditched brands Jaguar, Land Rover, Aston Martin, and more recently Mazda.

Sales have tumbled dramatically this year, with no end in sight for a strong resurgence. Additionally, the credit crunch has forced GMAC, GM’s financial arm, to turn many customers away as credit is becoming less available. While this is an attempt to cut losses, Detroit Chevrolet dealers and many other GM brand dealerships are concerned as the move will further limit the ability to move inventory.

The bailout of the crippled US auto sector has become huge political issue, as many Republicans are opposed to such a bailout while Democrats strive to earmark $25 billion of the $700 billion intended for Wall Street to go to the Big Three automakers.

GM’s move to ditch Suzuki is a necessary move to raise vital capital, which it has been burning through month and month. A business relationship between GM and Suzuki is likely to continue belives used cars Reading PA who speacializes in Suzuki vehicles as the two automakers have worked on numerous joint ventures together, such as SUV and hybrid vehicles. GM has held ties to Suzuki since 1981, but the GM sold off much of its stake in 2006 when it was left with only 3 percent. GM reported a $2.5 billion loss in the third quarter, which makes many wonder how far the $230 million cash infusion will go.

* * *

More on the Detroit bailout can be found here.

Is Chrysler Heading Towards Bankruptcy?

Chrysler has recently been brushing off rumors that the struggling automaker is on the verge of bankruptcy. Recently, the automaker accepted a loan of $2 billion to be used for improving the automaker’s current model lineup which is in need of revamping according to Used Cars Lamesa TX customers, but some expect that the money was to save the company from filing bankruptcy.

Although Chrysler has denied the rumors, the automaker has needed to issue a statement to deflect the fervor. The statement said that the statement has no merit and is completely false, implying that Chrysler’s financial standing is on stable ground.

Many of the Chrysler bankruptcy rumors have reportedly originated in Europe, and were spawned primarily by the $2 billion loan that Chrysler’s owner, Cerberus Capital Management and Daimler AG has taken out.

Cerberus currently holds an 80 percent stake in Chrysler. Despite its sale from Daimler AG, the German automaker still holds a minority stake in the company, and has provided about $1.5 billion of the total loan amount to help Chrysler.

* * *

Find out more about new Chrysler vehicles on this blog.

Chrysler and GM Merger Could Happen This Month

Speculation continues to grow amid the possibility of a merger between Chrysler and General Motors. Sources say a merger could happen by the end of the month, while many others still have doubts.

Chrysler had reportedly been in talks with other automakers as well regarding the possibility of a merger in addition to GM. Talks had been done before but had stalled. However, with the economy in tatters, the time is ripe for mergers.

Talk of mergers for Chrysler had begun less than a year ago when private-equity firm Cerberus had acquired Chrysler from Daimler Benz. However, with the credit crunch and changing buyer demand, things have not gone well for Chrysler, or for Cerberus.

Auto sales overall are expected to be about 16 percent lower than this year compared with last year. In addition, JD Power analysts expect auto sales to decline another 11 percent next year, which is enough to worry the already struggling domestic automakers, and their dealers.

Analysts can agree that Chrysler is in the worst position when compared with Detroit’s other two automakers. However, Chrysler dealers Lubbock and others believe it’s unlikely that Chrysler will go out of business completely any time soon as the automaker will likely be mergers or absorbed into another company.

In the instance of a merger, Chrysler and GM would have plenty of redundant brands and models that the automakers would have to contend with. As a result, some suggest a potential merger between the two simply wouldn’t make much sense. Already GM, as well as Ford, is shifting engineering operations to accommodate the growing demand for smaller, more fuel efficient vehicles worldwide, such as the latest Aveo at Detroit Chevrolet Dealers. With great expense being invested in those manufacturing and engineering endeavors, managing the addition of Chrysler may prove to be too difficult for GM.

In addition to Chrysler’s discussions with GM, the automaker has also dealt with Nissan. Earlier this year, Chrysler entered an agreement with Nissan to produce the next generation of full-size Nissan trucks, while Nissan will be producing a compact vehicle for Chrysler. Although the relationship should benefit both companies, a merger between the two would be highly unlikely.

Word on the result of a merger between Chrysler and GM could come by the end of the month, and with auto sales and the economy looking dismal, the auto industry is eager to hear the outcome.

* * *

Look for the latest Chrysler dealer news right here.

General Motors to Ship Buick Enclaves to China

General Motors has had plenty of problems in the North American market lately. But one place where General Motors is succeeding is in developing markets such as China where new car buyers will soon get their hands on the Buck Enclave crossover.

As a strong seller domestically, China-bound Buick Enclaves may be rolling off the production lines as early as next month. Despite the automaker’s appeal (or lack thereof) in the US, Buick is one of the strongest brands in China, with sales increases expected this year. Despite its very limited appeal domestically, the Enclace has remained a competitive vehilce for Raynham New Buick for its timeless styling and ample luxury. Even for Jim Burke Pontiac Buick GMC, the Enclave remains a popular model even while many consumers turning their backs on costly SUVs.

The Buick Enclave is the first luxury crossover from the GM brand. Although similar to Chevrolet, Saturn, and GMC crossovers, the Buicks offer more distinctive styling with graceful and elegant lines. The Enclave also offers seating for up to eight passengers and offers the best fuel economy in its segment.

The Buick Enclave has been a strong seller for General Motors. Already the automaker plans on producing an additional 17,000 units of Enclave production for the North American market this year. Despite the decreasing demand for large SUVs, the Enclave has been a rare exception and remains the strongest model in the Buick lineup.

* * *

Find additional Buick vehicle news on this blog.

Saturn Vue Hybrid and Plug-in May Be Coming

Potential General Motor’s buyers and fans of eco-friendly technology are eagerly anticipating the Chevrolet Volt, Chevy’s mass produced plug-in electric vehicle. But another plug-in may be coming soon to a GM dealer in the guise of the Saturn Vue.

The Saturn Vue plug-in hybrid electric vehicle may be on the horizon as well. Recently shown off at the Plug-In Conference in San Jose, CA, a number of Saturn plug-in hybrid electric vehicles are being tested and may provide an alternative to the Chevrolet Volt.

GM has spent a significant amount of time developing and refining the battery technology to provide ample power and reliability. The Saturn Vue Plug-in was one of earliest hybrid SUVs, and the plug-in version is based on the two-mode hybrid system current in use on the Saturn Vue Hybrid, which Connecticut Saturn sells quickly as it provide fuel efficiency with SUV versitility. This same system has also found its way into two of other recent GM hybrid, the Chevrolet Tahoe and the GMC Yukon.

Soon, the Saturn Vue will also be available with front-wheel-drive, offering improved performance and even greater fuel efficiency. With the addition of yet another version of this hybrid, GM clearly hopes to further its eco-friendly offerings which will surely satisfy new car buyers. High MPG is in high demand as the price of a gallon of gasoline has surged past $4 and shows no sign of receding. The Volt and other advanced hybrid vehicles will also help to buoy Chevy and GM sales, which have seen significant slumps lately.

* * *

Stay tuned for more on Saturn Hybrid technology and a review on the Vue.

San Diego Corvette Using Advertising

For some reason, car dealers are significantly underutilizing online video. With so many users uploading and watching videos at any given moment, it seems like a no-brainer tactic that domestic car dealers should be eager to implement.

An example of a Chevrolet dealer taking advantage of such an outlet is San Diego Corvette, who has leveraged the power of YouTube to promote one of the dealer's advertisements.



Best of all, the ad isn't showing the same Chevrolet vehicles over and over again, with the same salesy gimmicks. It's simple and it's humorous, which makes for a great television commercial and an even better online video.

Avoiding the gimmicks is the name of the game these days for dealers such as Bob Watson Chevrolet, where their no-nonsense way to advertising has appealed to potential customers.

***

More insights into Chevy dealer marketing shortly.

Dodge Viper No More

Dodge reportedly doesn’t have any plans to produce the beloved Viper beyond the 2009 model years. Although the Dodge Viper was a popular vehicle following it 1996 debut, the struggling American automaker is does not have many excited models coming out in the very near future, not even among the current higher sellers such as the Chrysler 300.

The Dodge Viper is not for everyone. It lacks the smoother or more luxurious amenities found in similarly prices options such as the Porsche 911. With prices beginning at $89,000, the Dodge Viper is not for everyone. The coupe and roaster versions feature a truck-derived ten cylinder engine that propels the car at breakneck speeds.

Despite its lack of finesse, the Dodge Viper developed a very loyal customer base. Viper owners have eagerly participated in Viper evens and shows across the country and established very active fan clubs.

With the demise of the Dodge Viper, perhaps more buyers will find themselves looking at the Chevrolet Corvette, another powerful domestic sports car. Corvette San Diego dealers say that the Vette's appeal has stayed constant thanks to fesh design and better overall value.

For those who want to own new Dodge Viper, it would be wise to head to the nearest Dodge dealer now. At this point there is no word on a new model past 2009, and with Chrysler’s current financial struggles, the Viper most likely be a low priority for an update.

Fans of domestic sports cars may still find light at the end of the tunnel as options still include the Ford Mustang and other muscle cars that will soon be on the market. But the Chevrolet Corvette may be the most appealing choice for blunt speed.

***

Get all your domestic sports car updates here.