All Entries Tagged With: "GM"
GM Posts Q1 Profit. Sign of Brighter Days Ahead?
by Gunnar Heinrich ::: GM posts profit
LOVE or hate the General and its tightened stable of four core brands, it seems universally encouraging that the automotive sector and GM that the car company propped up by American and Canadian tax dollars is turning a profit rather than bleeding more red. A sign of brighter days ahead?
According to GM: [our] first quarter adjusted earnings before interest and tax (EBIT) was $1.7 billion, after adjusting for the favorable impact of the sale of the Saab brand.
That means $865 million Q1 profit, according to the BBC and GM’s press release.
Regarding the Saab sale, Saab CEO has said GM sold the Swedish car maker to Spyker for about $74 million. That figure differs from GM’s which is stated at $123 million.
Around that same period, Beijing Automotive paid $200 million for the old 9-3 and 9-5 assemblies which according to SaabSpyker CEO Victor Muller were funds that Saab banked – not former parent company GM.
This suggests that the General is gaining ground on the back of a stronger product line.
Following Our Press Car’s Untimely Death, GM To Update All 2010 Cadillac SRX Turbos
by Gunnar Heinrich ::: IMG ADLX ::: 2010 Cadillac SRX Turbo
IT’S nighttime and I’m rather unnerved.
I’m on the 101 halfway up some mountain outside Ventura, California in a 2010 Cadillac SRX Turbo that has just died in the narrow meridian.
I’m barking at some nonplussed 9-1-1 dispatcher on the cell, OnStar’s on hold, and I’m ready to jump the jersey barrier if some dazed motorist drifts my way.
They all seem to brush by at light’s speed.
This broken press car is one of Cadillac’s latest midsize crossovers – a plush, Lexus RX fighter – that had just lapped its two thousandth mile before the car’s engine bought the farm.
In no time at all I had dropped from a comfy 65 mph cruise into a sputtering stop with black smoke billowing from beneath the silver hood and a long oily trail in my wake.
And now I’m awaiting rescue.
Minutes tick by endlessly. But the state police do arrive. The officer spies my precarious position and proceeds to snake his patrol car back and forth across the freeway- side-winder style.
Only then, does traffic slow to a grudging halt.
“If you can start your car, move it across to the right side.” The officer coolly broadcasts over the loudspeaker.
Now, all of Ventura seems to be waiting behind him. The cars are like greyhounds at the gate and I feel like the rabbit as – rattled and frozen – I climb behind the Caddy’s helm and press the start button.
Thunk-Thunk-Thunk-Thunk-Thunk-Thunk goes the mortally wounded motor.
Into drive.
We’re on borrowed seconds!
The SRX c-r-a-w-l-s across the freeway to the far side. The go pedal’s level with the carpet.
I reach the right side and the Caddy quits.
Traffic resumes its F1 pace, a discussion with the officer ensues, and ten minutes later the tow truck shows.
The driver shakes his head and says that only days prior some poor guy had similar trouble with his bike. When he tried crossing to the breakdown lane he got hit in roughly the same spot where I’d landed. He died.
So, what caused this fresh new Caddy to breakdown?
The answer arrived yesterday afternoon in a conference call with GM. Their findings are triggering a model-wide update to go into effect directly.
DAMAGE REPORT
On the phone is Tom Sutter.
Mr. Sutter is GM’s chief engineer for the automaker’s V6 engines. Also on the line is David Caldwell, Cadillac’s press manager.
Mr. Sutter leads headlong into a thorough explanation of the wheels that were set in motion following the incident.
“We took this very seriously,” he says. His tone is direct and earnest.
“As soon as it happened, we expedited the vehicle’s shipment back to our test center in Warren, Michigan. We’ve been at this 24 hours a day, 7 days a week.”
He and his team “tore down” the motor, analyzed the car’s black box data, and sent a fuel sample to a third party lab for analysis. Additional tests on a dyno replicated the failure, but they’ve yet to duplicate the incident in real life testing.
The SRX Turbo uses a 2.8 liter, 300 hp V6. This same engine has served for five years in Saabs including the upcoming 9-4X. The engine also powers Germany’s Opel Insignia.
THE BREAKDOWN
Mr. Sutter is describing my incident as a “Mega knock event.”
“We have a high degree of confidence that we’ve sourced the problem,” he tells me, getting down into the gory details.
What happened is as follows and was, apparently, a fluke:
The V6 in the Cadillac requires a minimum 91 Octane.
Lab tests had shown that the SRX was running on regular which meant that yours had inadvertently fed the car 88 Octane gas and not the factory mandated premium.
At some point during travel, between 2000-2500 rpm – or normal highway cruising speed – the engine’s management system had adjusted the air fuel mixture to work too lean causing a retarded spark – but crucially – it allowed for a simultaneous turbo boost which led to a catastrophic pressure build up in the cylinder chambers.
This caused cylinder six to fail quickly -leaving yours stranded.
Mr. Sutter’s team concluded that the resulting pressure in the chamber was four times greater than the stress during full throttle acceleration.
“We’ve been working on a new calibration which should be implemented in coming days,” he says, indicating that this will ensure proper engine management going forward during what we might describe as “lean times” during the fuel consumption of a given SRX Turbo.
Mr. Caldwell stresses that what happened was an extremely rare event and that they’ve had only a couple of incidents that resemble what happened to me in California.
He suggests that the low Octane gas could be considered a contributing factor and not the primary cause of the engine’s failure. But not everyone is careful with their choice of gas (as evidenced by this writer) and high Octane gas isn’t always available in some rural areas.
Surely the car must be engineered to compensate?
Both acknowledge this aspect and say that the SRX’s management system should have adjusted to accommodate for the lesser grade petrol and their system fix will ensure that it does going forward.
Nevertheless, Mr. Sutter maintains that the low Octane gas was the primary trigger in my car’s failure.
“Ever since we’ve switched to low displacement, turbocharged engines, we’ve noticed a sensitivity [to Octane levels].”
The 2.8 liter, turbocharged V6 was created at GM’s Pontiac, Michigan center in tandem with Saab staff in Sweden who engineered the turbo.
While most Saabs require only regular unleaded, the Cadillac SRX Turbo’s V6 represents the highest output version of this particular powerplant, hence the requirement for higher grade fuel.
NEXT STEPS
As this article posts, GM is conducting field tests on six SRX Turbos in Death Valley to ensure that the recalibration they’ve devised will prevent a repeat of the failure when the vehicle runs on regular unleaded.
Once finalized, Cadillac will implement the engine management adjustments to the SRX assembly line so that new SRX Turbo units rolling off the line going forward will benefit from the update.
Current SRX Turbo customers will receive the update at their Cadillac dealer during service, though the company has not yet decided how it will inform customers on the need to getting their car updated.
We should receive word on their customer plan within the week. Also, GM will provide Automobiles De Luxe with another press car to complete our review. Expect our full take on the 2010 Cadillac SRX Turbo next month.
Here’s hoping for a smoother road test.
—-
Ed. Note: Special thanks to OnStar, Chris at Page One, and California Highway Patrol for their greatly appreciated help.
After Spike, Spyker Shares Drift Back To Earth
By Gunnar Heinrich | IMG LensOnLeeuwenhoek.net
INVESTORS, it seems, were looking to make a quick buck euro.
As of Friday, Jan. 22nd, one share of Spyker Cars, NV (AMS: SPYKR) could be had publicly for 2.15. Fast forward to Monday’s close, and the stock was up again to 3.80 on much higher volume due to rumors that Spyker could clinch a deal with GM to buy Saab.
On Tuesday, share price rose again and then settled at 3.91 before the exchange halted trading in advance of the announcement that Spyker had, in fact, pulled off the deal.
When trading resumed on Wednesday, the price peaked at 6.80 a share before some investors rushed to sell; for some that meant locking in a gain of more than 200%. The sell off dropped the share price to 5.21 before rallying again to 5.75.
But as financial reports from Bloomberg and others have started trickling in on the enormity of the hurdles Spyker faces in revitalizing Saab, as of this article’s posting, Spyker’s price now stands at 4.05 per share on a day when the stock’s price started at 5.14 a share.
Historically, those who invested in Spyker’s initial public offering back in ‘04 are still seeing red: that offer was 14.83 per share. But there is a positive note: if the past any indicator, there could be stronger highs in the future.
Spyker’s stock peaked to an all-time high in April, 2006 @ 22.35 a share.
[Source: Google Finance]
Spyker Announcement Re: Saab. Live Video Link
By Gunnar Heinrich
GOT this one courtesy SaabsUnited.com
Spyker’s set to hold a press conference which should take place in the Netherlands directly.
Here’s the link: www.rtl.nl
Saabists remember: if the sale with GM falls through, Genii Capital is reported to be waiting in the wings with a new offer.
It looks as though our dear Saab will find a new home!
Saab Sale Announcement Likely Today, Spyker Shares Up
By Gunnar Heinrich | IMG Flickr via SaabsUnited
MUM’S the word, but expect an announcement from the General or Spyker later today on the sale of Saab Automobile AB.
With the Saab community a-twitter, and some likely breathing into paper bags – including Spyker’s own CEO – the intense anticipation is palpable as negotiations with GM climax.
At the moment, trends are delicately positive. Spyker’s shares rocketed yesterday on the whiff of good news that the Dutch exotic manufacturer would pull it off.
According to Google Finance, if you bought early yesterday morning (AMS: SPYKR) and sold before trading halted, you would’ve pretty much doubled your money within eight hours.
Griffin Up New York! Save Saab Rally to Times Square
By Gunnar Heinrich
RECOGNIZING that the automotive world’s a better place with Saab in it, the following are the details for the upcoming Save Saab rally in New York that’s set to take place this Sunday, January 24th. At present, NOAA’s forecasting rain. But when did that ever stop committed Saabists?
Per SaabsUnited.com
The Save Saab New York Rally
Meet @ 10am: Exit 5S off the Palisades Parkway (near US Army Reserve, Orangeburg)
Depart for Times Square @ 11am. Arrive by noon.
The New York event will coincide with same-day rallies in Paris, Washington, Chicago, St Louis, and Denver. Visit SaabsUnited’s “Save Saab” page for further details on those events.
Griffin up!
Decisions, Decisions: Corvette Coupe v. ZR1
By Gunnar Heinrich | IMG GM
THERE is much to recommend GM’s plastic fantastic.
Besides the brash styling that broadcasts American brawn, on paper, Corvette remains a bargain:
For $48,930 you have the low entry-point to start the Chevrolet LS3 V8; a righteous 6.2 liter, 430 horsepower engine that makes 424 lb-ft of torque happen @ 4600 rpm.
Couple that with a moderate curb weight of 3,208 lbs and the standard coupe’s good for the claimed 190 mph top speed.
Better still, it’ll average 26 mpg which is thriftier on regular than my Saab convertible.
But here’s the question – Would you pay better than twice the price to buy the Corvette ZR1?
For $106,880 you get the Chevrolet LS9 V8; 638 horsepower that summons 604 lb-ft of torque.
Massively powerful, GM’s slotting this beast against the likes of Ferrari (599) and Lamborghini (Gallardo).
To add that it’s still cheaper than its competition means less than the virtues of the ZR1’s aluminum frame along with “visible carbon fiber components” that grant a power to weight ratio advantage over the Italians.
Oh, and top speed is 205 mph.
Does this make the ZR1 twice the Vette?
Having driven (only briefly) the standard coupe, it’s easy to say a staunch “Hell, No!” And they both look pretty much the same, aside from the ZR1’s quad pipes and tacky see-thru engine window on the hood.
Nevertheless, track considerations are another matter.
True, it’s unlikely that many buyers cross shop Ferraris with Vettes.
Prancing Horse buyers factor an image/performance decision ratio of somewhere around 60/40. For Lamborghini, we could argue 65/35. The ZR1 appeals to those who seek raw performance in a car destined for racing.
The difference is, however, that unlike, say, a Viper which exacts its might with all the finesse of a jackhammer, the Vette remains a sharp implement.
Handling, braking, and the effects of accelerative force are all considered in what amounts to GM’s best engineering efforts this side of the CTS-V.
Short of driving both cars, we can safely surmise that the standard Vette minus all the fixin’s (Carbon fiber brakes, HUD, etc.) represents the superior value. The ZR1 is less bang for your buck and more of an all-in American style.
I Dream of Saab
By Gunnar Heinrich| IMG Saab Automobile AB
SAD to know that what we’ve come to love cannot be forever.
To the Saabists out there – we few but passionate Svenska automobilists – my heart goes out to you on the eve of this terrible news.
Saab Automobile AB will now close after several botched attempts to find suitors.
Truthfully, Saab hasn’t been Saab for some years now. Since 2003, the 9-3 sedan (the bread ‘n butter of Saab’s smart portfolio) was sold as a rebadged Opel (generic as any midsize rental Euro car can get) streamlined in a mistaken quest to compete for BMW 3-Series and Audi A4 sales.
The 9-3 and the effort to drive Saab mainstream was but one of many tragic missteps by GM’s global brand of gross incompetance.
General Motors never understood Saab. Never wanted to, either.
Time and again Saab slipped the world clues as to the true capacity of their creativity despite the fiscal shackles that restrained it. The 9-1X a super techy and oh, so svelte hatchback that if priced in the $20K’s would’ve flattened BMW’s MINI. Even the new 9-5 seemed brimming with promise.
No one ever thought the Turbo X a credible alternative to an Audi S4 or a BMW M3. Nor could we reasonably contemplate purchasing a 9-3 SportCombi in place of a Volvo V70. The customers were very different, even if the price ranges were similar.
And therein lies the crux: Saab drifted away from what Saab did best – selling smart, sleek, turbocharged hatches. MINI has proven that there’s a market for quirky, upscale hatchbacks (even in America) and can now claim the market for its own.
Automotive enthusiasts everywhere have reason to morn tonight. For Saab, a company whose premise was building cars that are more than just appliances for getting us from points A to B, has died. And with it, a piece of the automotive soul.
Happy Saabing, Jan-Willem Vester
- Former Saab rep. Jan-Willem Vester has died
- Mr. Vester was a true gentleman and tremendous representation for GM
- Owned Saab 900 Convertible and Porsche 911
By Gunnar Heinrich | IMG Kevin Kusina for ADLX
JAN-WILLEM, or “Jay-Dubya” as his one time boss at SaabUSA called him, was a true car guy and an even truer gentleman.
Before joining GM’s press relations team for Saab, the gentle Dutchman wrote for European car mags and in his own garage: a mint, 80’s fresh 900 Convertible and a 993 gen. 911 Porsche.
What made Mr. Vester so effective was his character: devoid of any attitude, soft spoken, and clever in finding common ground.
For instance: recognizing that eventhough I owned a Saab convertible myself, my strongest interest centered on Mercedes-Benz, he regaled me one evening with a review he once conducted on the W140 gen. 600SEL.
With few exceptions, he was one of the finest car company representatives I’ve met. According to SaabsUnited, the auto industry is emptier today with news of his death.
One of Jan-Willem’s common sign-offs was “Happy Saabing”.
Happy Saabing, Jan-Willem.
Trollhattan Stirs! Saab Lives To See Another Week
A happening at the Saab factory…
- Did GM’s CEO shuffle help buy time for Saab?
- Saab sales frozen with lack of confidence
- SaabsUnited proves to be best source for the blow by blow
By Gunnar Heinrich | IMG via SaabsUnited.com
SAAB still lives!
Bless their Svenska souls, it seems like GM’s become too distracted with the immediate departure of former CEO Fritz Henderson and his reportedly outspoken daughter (if true, good on her for defending dad) to drop the axe on Saab.
Considering how the General so cavalierly doused that phoenix which was Pontiac last year, it may surprise you that with the collapse of the Koenigsegg deal, Saab’s lived to see another week.
But make no mistake, tidings are still grim.
Sales have drawn down to drip-drops from last year’s trickle. Monthly sales figures in markets like Canada and Germany are down to low double digit accounting errors. It’s a fearsome freeze in confidence that Saab’s facing.
Lucky for Saab, it has a plucky and loyal community of faithful Saabists led by the ever firey Steven Wade.
Mr. Wade is SaabsUnited’s flame spouting griffin; a blogger who has in the past been coddled by GM largesse (in one instance, GM flew Mr. Wade from Tasmania to Detroit a couple to cover the Detroit Auto Show) only to be exiled when he continued to hold the Detroit giant to account.
Throughout this tumultous period for Saab, Mr. Wade or “Swade” as he’s known has provided a thorough, daily account of every little event – right down to writing a small post about some appreciative Saab staff handing a grimacing smiling CEO Jan Ake Jonsson a bouquet of roses in a show of support as he headed off to lobby the suits in Motown.
In such a dark hour, the Saab community (of which yours counts himself a member) can count Mr. Wade as a boon to a busted car maker.
