Volkswagen Shows Renderings Of U.S.-Made New Midsize Sedan

 Volkswagen of America released three new renderings of its new midsize sedan to be produced at its assembly plant in Chattanooga, Tennessee and officially unveiled at the Detroit Auto Show in January with its market introduction in the third quarter next year.

2011 North American Car of the Year Awards "Short List"

Here's the 18th year annual 2011 North American Car of the Year Awards "short list" as selected by automotive journalists from the United States and Canada who represent magazines, television, radio, newspapers and web sites.

27 new cars were eligible and cut down 14 semi-finalists while there were only 14 trucks eligible so no voting was needed to cut that list. The three car and three truck finalists will be announced on December 16th at an Automotive Press Association luncheon in Detroit and the final two winners - car & truck - will be announced in January at the North American International Auto Show in Detroit.

2011 North American Car of the Year Short List:
Audi A8, Buick Regal, Chevrolet Cruze, Chevrolet Volt, Ford Fiesta, Hyundai Sonata/2.0T/Hybrid, Infiniti M37/56, Jaguar XJ, Kia Optima, Mazda Mazda2, Nissan Juke, Nissan Leaf, Volkswagen Jetta, Volvo S60.

2011 North American Truck of the Year Short List:
Dodge Durango, Ford Edge, Ford Explorer, Honda Odyssey, Hyundai Tucson, Infiniti QX56, Jeep Grand Cherokee, Kia Sorento, Kia Sportage, Lincoln MKX, Mercedes-Benz R-Class, Porsche Cayenne, Toyota Sienna, Volkswagen Touareg.

Who would you vote for?

Nissan Hits 20,000 LEAF Orders & Infiniti Has EV & M35h Hybrid Coming

Nissan is ahead of its own schedule to reach its stated target of 20,000 reservations by the first U.S. Nissan LEAF delivery in December.  Nissan kicks off the 23-city "Drive Electric Tour" October 1 in Los Angeles giving reservation holders and those interested in driving a Nissan LEAF a chance to experience all-electric driving firsthand. Nissan says no further reservations will be taken until next year and it's focusing on providing the best level of customer service and premium ownership experience to those who already have enrolled. A subsequent phase of reservations will begin next year, after current reservations and orders have been processed.

Nissan's luxury division, Infiniti, released a sketch of its first luxury electric vehicle, which is set to launch in the United States  and other global markets in 2013.

The 2012 Infiniti M35h, which features Infiniti's Direct Response Hybrid technology, makes its North American debut at the Los Angeles Auto Show in November.  The M Hybrid is based on the Infiniti M sedan and promises V8 performance with 4-cylinder fuel economy from a 302-horsepower (est.) 3.5-liter V6 supported by a 50 kW (67 horsepower est.) electric motor.  Dubbed "the driver's hybrid," the M35h will be able to be driven on electric power alone at speeds up to 50 miles per hour.  The compact Lithium-ion battery pack design also allows use of a spacious passenger cabin and ample trunk capacity.  The Infiniti M35h will be available at Infiniti retailers in the United States in spring 2011. 

2011 Kia Optima Coming Soon, Hybrid Arriving Next Year

The all-new 2011 Kia Optima midsize sedan, first seen during the 2010 New York International Auto Show, is coming soon with three new powertrains – a 200 horsepower 2.4-liter GDI four-cylinder, a 274 horsepower 2.0-liter GDI turbo or a 2.4-liter hybrid engine. This represents Kia’s first application of GDI technology, while a 2.4-liter hybrid Optima will be introduced in 2011. All automatics feature Sportmatic® clutchless shifting. A single six-speed manual transmission is available only with the LX four-cylinder model. The 2.4-liter four-cylinder posts 24/35 mpg (city/highway) when mated to the manual transmission and 24/34 mpg when coupled with the automatic transmission, while the 2.0-liter turbo GDI offers 22/34 mpg, only available with the automatic transmission.

The all-new Optima is longer, wider and lower than the vehicle it replaces with an overall length of 190.7 inches, an increase of 1.7 inches over the previous model, an overall width of 72.1 inches and wheelbase of 110 inches, an increase of 2.9 inches, and has a low ground clearance of 5.3 inches. The 2011 Optima is based on an all-new midsize platform available in three trims - LX, EX and SX. The LX includes dual exhaust with chrome tips, solar glass, outside mirror turn signal indicators and 16-inch steel wheels fitted with 205/65R16 tires. Upgrading to the EX offers standard fog lights, heated outside mirrors, exterior chrome/body-color door handles along with 17-inch alloy wheels with P215/55/R17 tires, while the EX Turbo adds a unique front grille design. The SX adds HID headlights with auto leveling, LED rear combination lights, unique front grille design, rear lip spoiler, sculpted side sills, aero wiper blades, black front brake calipers and 18-inch black machined finish alloy wheels furnished with P225/45R18 tires.

The 2011 Optima offers a Convenience Package (LX A/T only) with an eight-way power-adjustable driver’s seat and auto-dimming rear view mirror with Homelink®, while the LX Technology Package (with Convenience Package) adds the navigation system with back-up camera, an eight-speaker Infinity®6 premium audio system and dual-zone automatic temperature control with rear ventilation. EX trim consumers can opt for the Premium Package, which adds the panoramic sunroof with high-gloss B-pillar, four-way power-adjustable driver’s seat with driver’s seat memory, heated and cooled front seats, heated rear seats, a heated steering wheel, wood interior trim and center console and metal-finished shifter. The EX Technology Package (with Premium Package) adds the navigation system with back-up camera and eight-speaker Infinity premium audio system.

The Kia Optima, like the Hyundai Sonata, is providing real competition to the Japanese and American mid-size market leaders and gets a notch up with the 10-year/100,000-mile limited powertrain warranty, five-year/60,000-mile limited basic warranty, five-year/100,000-mile anti-perforation warranty and five-year/60,000-mile roadside assistance plan. The new models will accelerate Kia and Hyundai's sales and market share growth in the U.S.

2012 Ford Focus Will Have New Airbag Design

The all-new 2012 Ford Focus will launch Ford’s next-generation driver-front airbag that uses a reconfigured curve-shaped tether system that pulls in the lower section to create a “pocket” to help lessen the impact of the airbag on the driver’s chest and ribs in frontal crashes.

Ford’s side airbags feature shoulder vents that stay open and reduce pressure for smaller occupants who typically benefit from reduced forces. Taller occupants whose shoulders block the vent could benefit from the higher pressures.

Focus also will be Ford’s first car ever to feature front passenger airbags with adaptive venting technology that diverts some of the gas from the airbag inflators through vents outside of the airbags. The restraints control module – the control center of Ford’s advanced safety systems – adjusts the level of venting based on seat position.

The new passenger airbag is designed to help enhance head and neck protection by better matching deployment force with occupant size. This innovative system uses a small pyrotechnic device to force open the vent and can provide less pressure in the airbag when it’s sufficient to help protect the occupant.

BMW Promotes Creed & Lucas To Marketing & Eastern Region Jobs

BMW North America had to scramble after the untimely, tragic death of my good friend Jack Pitney who was transitioning from head of Marketing to the Eastern Region. Today BMW filled both those positions for an October 1st start date.

Dan Creed (left), currently Vice President, Aftersales, BMW of North America, will become Vice President, Marketing, BMW of North America LLC.  In his new role Dan will be responsible for marketing and product planning and strategy for the BMW brand in the U.S. Dan Creed joined the BMW Group in 1996 as Training Manager for Marketing and Sales at BMW Canada. He was appointed National Marketing Manager for BMW Canada in 1997 and became National Sales Manager, BMW Canada in 1999. In the U.S., Creed was appointed to lead the Southern Region of BMW North America in 2005 responsible for this major sales region and its 123 dealers located in 11 states and Puerto Rico. In his current role as Aftersales Vice President, Creed is responsible for all service, parts, accessories and lifestyle merchandise for the BMW and MINI brands in the United States.

Russ Lucas (right), currently Manager, BMW Pre-Owned Sales, will become Vice President – Eastern Region with overall responsibility for sales, marketing, aftersales and dealer development activities in the 12 state Northeast Region which includes the New York metro area. The Northeast Region is the largest sales area for BMW of North America with 93 BMW and 24 MINI dealers. Russ Lucas joined the BMW Group in 1985 first as District Parts Manager in Atlanta, Georgia and then as Area Sales Manager in BMW’s Southern Region. In 1997, Lucas became Regional Aftersales Manager in the Southern Region where he directed a team of field representatives and instructors in expanding the company’s Aftersales business. Since April 2009, Lucas has held the role of Pre-Owned Sales Manager responsible for a critical and growing part of BMW Group business in the U.S. 

Volkswagen Promotes Jonathan Browning To CEO/Pres VW of America

Jonathan Browning

Volkswagen Group of America announced that Jonathan Browning, 51, has been named President and CEO of Volkswagen Group of America effective October 1, 2010. He is currently responsible for the global directing of the Volkswagen Group’s National Sales Companies.

“Volkswagen will play an even stronger role in the important U.S. market going forward, said Christian Klingler, Member of the Board of Management of Volkswagen AG for Sales. “Jonathan Browning is an acknowledged expert on this market, its customers and its sales structures.”

Jonathan Browning succeeds Stefan Jacoby, who has left the company. Browning has held numerous executive sales and marketing posts worldwide at General Motors (GM) and Ford Motor Company. He was vice president of European sales, service and marketing at the GM Group from 2001 to 2008, and simultaneously chairman of Vauxhall Motors from 2006 to 2008, becoming GM vice president of global sales, service and marketing in 2008. Browning worked for the Ford Group from 1997 to 2001, first as executive director of marketing for Ford Europe and then as the global managing director of Jaguar. He moved to the Volkswagen Group in June 2010.

“The U.S. will always be one of the largest and most important markets for automobiles,” said Klingler, adding that this affords the Volkswagen Group significant growth opportunities. Klingler also reiterated the target to sell 200,000 Audi brand models and 800,000 Volkswagen brand models in 2018. “Volkswagen and Audi will become leading brands in the U.S.”

Volkswagen Group is investing one billion dollars in the new Chattanooga plant, will be launching a unique marketing offensive in the U.S. and recently celebrated the world premier of the Jetta in New York’s Times Square. According to Klingler: “The Group’s board and top management fully support this market and its customers.”

2011 Honda Odyssey To Start At $28,580 On September 30th

 The all-new 2011 Honda Odyssey minivan is set to debut at dealers on September 30th with a manufacturer's suggested retail price (MSRP) ranging from $27,800 for the Odyssey LX to $43,250 for the Odyssey Touring Elite, plus a destination and handling charge of $780 per model. A more powerful and efficient 3.5-liter i-VTEC V-6 engine features Variable Cylinder Management (standard on all models for 2011) and produces 248 hp (+4 hp over 2010) while delivering an EPA-estimated city/highway/combined fuel economy of 19/28/22 mpg on Odyssey Touring models (18/27/21 mpg on Odyssey LX, EX and EX-L models). For enhanced driving refinement on Odyssey Touring models, a six-speed automatic transmission debuts as a standard feature. All other models receive the five-speed automatic transmission.

Significant enhancements to the interior include a new "3-mode" second-row seat design that is more comfortable for center passengers (Odyssey EX and above). The 2011 Odyssey is equipped with a total of five LATCH attachment points (four in the Odyssey LX. up from three in the previous model). The one-motion, 60/40 split 3rd-row Magic Seat® is positioned for more legroom and is even easier to operate for 2011.

Model	Transmission	MSRP(1)	City/Hwy/Combined(2)
Odyssey LX	5-Speed Automatic	$27,800	18/27/21
Odyssey EX	5-Speed Automatic	$30,950	18/27/21
Odyssey EX-L	5-Speed Automatic	$34,450	18/27/21
Odyssey EX-L with RES	5 Speed Automatic	$36,050	18/27/21
Odyssey EX-L with Navi	5-Speed Automatic	$36,450	18/27/21
Odyssey Touring	6-Speed Automatic	$40,755	19/28/22
Odyssey Touring Elite	6-Speed Automatic	$43,250	19/28/22

(1)  MSRP excluding tax, license, registration, $780.00 destination charge and options. Dealer prices may vary.
(2)  Based on 2011 EPA mileage estimates, reflecting new EPA fuel economy methods beginning with 2008 models. Use for comparison purposes only. Do not compare to models before 2008. Your actual mileage will vary depending on how you drive and maintain your vehicle.

2011 Dodge Durango Arrives With 3 Rows In The 4th Quarter

The 2011 Dodge Durango is an all-new a three-row vehicle featuring two engine options: the standard 3.6-liter Pentastar V-6 and the available 5.7-liter HEMI engine with fuel-saving, Multi-displacement system (MDS) four-cylinder mode. Both engines feature variable-valve timing (VVT) and are available with all-wheel drive and provide towing capability with standard trailer sway control of 7,400 lbs. for the V8 and 6,200 lbs. for the V6. When equipped with the HEMI® V-8, the all-new Durango can tow more weight than a 24-foot boat and trailer. With 22 different seating configurations, there’s plenty of room to store and move plenty of people and their gear.

The all-new 2011 Dodge Durango also offers 45 safety and security features, including standard front seat-mounted side air bags and standard side-curtain air bags that cover passengers in all three rows, as well as all-new standard active head restraints. Electronic Stability Control also is standard. Other available safety and security technologies include Blind-spot Monitoring, Rear Cross Path detection, Forward Collision Warning, Adaptive Cruise Control and Keyless Enter-n’ Go.

Built at the Jefferson North Assembly Plant in Detroit, Michigan, the new 2011 Dodge Durango arrives in showrooms in the fourth quarter of 2010.

August 2010 Auto Sales Weak Vs. August 2009 "Cash For Clunkers"

General Motors August sales for Chevrolet, Buick, GMC and Cadillac was 184,921, down 11 percent compared to last August, a month in which the automotive industry experienced the highest level of sales in 2009 due to the Cash for Clunkers stimulus program. Year-to-date General Motors four core brands have accounted for sales of 1,453,930, a 23.4 percent rise over 2009.

Ford, Lincoln and Mercury dealers delivered 157,503 new vehicles in August, down 11 percent versus a year ago during the “Cash for Clunkers” sales program. Year-to-date, Ford sales total 1,278,340, up 18.3 percent.

Toyota Motor Sales, U.S.A. reported August sales of 148,388, down 31.4 percent compared to the same period last year. Year-to-date Toyota has sold1,164,154 vehicles virtually unchanged from last year's total of 1,170,409.

American Honda posted August sales of 108,729 vehicles, a 30 percent decrease from 2009. American Honda year-to-date sales reached 815,075, an increase of 1.5 percent versus last year.

Chrysler Group LLC reported U.S. sales of 99,611, a 7 percent increase compared with sales in August 2009. Year-to-date Chrysler has sold 720,140, a gain of 10 percent over 2009.

Nissan North America reported August U.S. sales of 76,827, a decrease of 27 percent compared with the "Cash for Clunkers" fuelled sales in August 2009. For all of 2010, NNA sales are up 14.2 percent.

Hyundai Motor America August sales of 53,603 was down 11 percent compared with the all-time sales record set in August 2009, when the successful "Cash for Clunkers" program was in place.  Still, August marked the third best volume month in company history. For the year, Hyundai reported sales of 363,491, up 17 percent versus the same period in 2009, and remains on track to establish an all-time sales record for the full year.

Kia Motors America reported August sales of 32,465, down 19.2 percent from August 2009 with year-to-date sales of 237,953 up 9.7 percent from 2009.  The 2011 Sorento CUV was the brand's best-selling vehicle for the eighth consecutive month.

Volkswagen of America reported that August sales were 22,855, a 7.9 percent drop from August 2009 and year-to-date sales of 172,747, up 21.3 percent. Separately, Audi sold 9,182 luxury cars and SUVs in August 2010, topping the previous August record of 8,057 vehicles sold in August 2009 by 14 percent. Year-to-date Audi sales are 65,439, up 25.1 percent from 2009.

The BMW Group in the U.S. (BMW and MINI combined) reported August sales of 23,965 vehicles, a decrease of 1.6 percent from last year. Year-to-date, the BMW Group reported a sales volume of 168,940
vehicles, up 5.6 percent from last year.

Subaru of America reported August sales of 22,239, down 22 percent from Subaru's best August ever.  Year-to-date sales total 172,182, a 20 percent increase.

Daimler reported U.S. sales of 20,122 Mercedes-Benz and smart vehicles, an improvement of 7.4 percent compared to August 2009. Mercedes-Benz USA reported August sales of 18,826 passenger cars, light truck vehicles and 848 Sprinter vans. MBUSA has sold 139,867 passenger cars and light truck vehicles in 2010, an 18.1 percent increase over 2009.

Mazda North American Operations reported August sales of 19,739, a decrease of 25.6 percent compared to last August. Year-to-date sales through August 2010 stand at 156,190, and are outpacing last year’s sales by 7 percent.

Mitsubishi Motors North America August sales of 4,293, was 37 percent lower compared to last August.

Porsche Cars North America August sales in the U.S. was 2,032, up 33 percent. So far in 2010, Porsche's overall year-to-date sales are 15,719, an increase of 23 percent.

American Suzuki sold 1,830 vehicles in August, a drop of 68 percent from 2009 and year-to-date sales are 15,331, a decline of 52 percent from last year through August.

Sales will be added as manufacturers report.

BMW's Jack Pitney Tragically Killed In Farm Accident

Jack Pitney

We have lost a good friend. Jack Pitney, BMW of North America Vice President of Marketing, 47, was just six days away from becoming the Vice President of the U.S. Eastern Region for BMW in a move that would have groomed him for the top U.S. job. Jack was killed yesterday in a tragic accident while on vacation at his farm. He was apparently trying to remove a tree stump with a tractor which flipped over on him causing injuries that were fatal. 

Jack was one of us in the media/public relations realm before becoming the poster boy for transitioning from an automotive PR guy into an automotive executive with serious responsibilities like the launch of MINI in the U.S. Though he had big assignments, he was always the fun and friendly Jack we used to know, he never changed - always greeting me with a big warm smile at auto shows, in the lobby of the BMW New Jersey headquarters or wherever. I knew Jack for more than 20 years, starting from his PR days on the West Coast. Jack was destined to make it big, really big, before yesterday's tragic accident that took him from us.

My heartfelt condolences go out to his family.

2011 Nissan Murano Gets Refreshed For Mid-October Sales Debut

The new, refined 2011 Nissan Murano, big brother to the Juke and Rogue, gets a new look and other features from the 2010 model. The second generation Murano, introduced two years ago, gets refreshed with a new grille and bumper design, taillights, 18-inch aluminum-alloy wheel design, new exterior Graphite Blue color and a wood grain hue on Murano LE models, to list a few. All 2011 Muranos feature a standard VQ-series 260 horsepower 3.5-liter DOHC V6 engine with advanced Xtronic CVT™ transmission and Vehicle Dynamic Control and Traction Control System.

Interior enhancements for 2011 include a new white meter color, new center stack colors and added equipment to various trim levels – driver's seat with power lumbar support (SV), RearView Monitor (SV), 7.0-inch color monitor (SV), auto dimming rearview mirror with compass and HomeLink® Universal Transceiver (SL) and heated steering wheel (SL).   New audio and entertainment features range from the addition of standard iPod® connectivity and Bluetooth® Hands-free Phone System to SV models to a Bose® audio system with nine speakers plus dual subwoofers for SL models.  Other available technology includes an advanced touch screen Nissan Navigation System with 9.3GB Music Box™ hard drive.

The 2011 Murano, which is set to go on sale at Nissan dealers nationwide in mid-October, is offered in eight models, in front-wheel drive or an Intuitive All-Wheel Drive system, with the SV FWD and SV AWD being new to this line-up: S FWD, S AWD, SV FWD, SV AWD, SL FWD, SL AWD, LE FWD and LE AWD.

Murano is an attractive vehicle that stacks up well against its luxury competitors like the Lexus RX350, Audi Q5 and Acura MDX when fully loaded.

More Changes At GM, Chris Perry To Chevy Marketing From Hyundai

Chris Perry

General Motors grabs another marketing exec from Hyundai, though technically Joel Ewanick had a brief two month stop at Nissan en route to Detroit. Chris Perry has been named vice president, Chevrolet marketing, effective immediately, joining the brand from Hyundai Motor America where he was vice president, marketing. He rejoins Ewanick and will report to his old boss who is General Motors U.S. Vice President of Marketing.

Perry joined Hyundai in 2000 as the head of brand planning. While at Hyundai, he progressed through a variety of brand, marketing and advertising positions, before being named vice president, marketing communications in April, 2010. Prior to joining Hyundai, Perry spent nearly 10 years at American Isuzu Motors, where he held a variety of marketing and advertising positions. Perry replaces Jim Campbell, who is named vice president, Performance Vehicles and Motorsports.

Jim Campbell

In his new assignment, Campbell will be responsible for integrating the engineering and marketing of performance versions of current production models, as well as all motorsports activities.

Before serving as vice president, Chevrolet marketing, Campbell led GM's Fleet and Commercial Operations.  Prior to Fleet and Commercial, he held various positions in field sales, retail incentives, marketing and customer relationship management. He has broad experience with performance vehicles like Corvette and Camaro and has worked extensively across a variety of race series, including NASCAR, American Lemans Series and Grand Am Road Racing.

Campbell will report to Mark Reuss, president, GM North America, and Tom Stephens, vice chairman, Global Product Operations. Perry will report to Ewanick and Hyundai will again search their bench and elsewhere in their second search for marketing chief this year.

2011 Jeep Wrangler Goes Into Production

Chrysler released images of the new 2011 Jeep® Wrangler and Wrangler Unlimited which went into production earlier this week at the Toledo Assembly Complex in Toledo, Ohio.The new 2011 Jeep Wrangler interior highlights include a redesigned instrument panel and new storage areas with improved ergonomics and upgraded materials. A new lockable console and upgraded door armrest areas boast comfortable touch points, while a redesigned center stack is easier to reach and operate. Heated, power mirrors are now available, and drivers and passengers will enjoy enhanced visibility courtesy of larger rear windows.

All-new steering-wheel controls allow the driver to operate the radio, cruise control, hands-free phone and other vehicle functions while keeping hands on the wheel. A new USB device interface connects to storage devices (thumb drives and most MP3 players) for use with the vehicle's Media Center, which now includes streaming Bluetooth audio. Twelve-volt accessory outlets have been added and a new 110-volt outlet is available to provide power similar to AC outlets in the home. The 2011 Jeep Wrangler and Wrangler Unlimited Sahara models have an all-new, premium, body-color hard top. Several new Jeep Wrangler colors are available for 2011, including Detonator Yellow, Deep Cherry Red, Sahara Tan, Cosmos Blue and Bright White.

General Motors Files For IPO - Not Many Details Yet

General Motors has filed a registration statement on Form S-1 with the SEC for a proposed initial public offering (IPO) consisting of common stock to be sold by certain of its stockholders and the issuance by the company of its Series B mandatory convertible junior preferred stock. 

The amount of securities offered will be determined by market conditions and other factors at the time of the offering.  The number of shares to be offered and the price range for the offering have not yet been determined. 

Morgan Stanley and J.P. Morgan (representatives of the underwriters), BofA Merrill Lynch, Citi, Goldman, Sachs & Co., Barclays Capital, Credit Suisse, Deutsche Bank Securities, RBC Capital Markets, and UBS Investment Bank will be the joint book-running managers for the offering.  When available, copies of the preliminary prospectus relating to the offering may be obtained for free, by visiting the SEC website at http://www.sec.gov. 

Will you buy GM stock?

GM's Ed Whitacre Stepping Down as CEO Sept 1st, Chairman At Year End

General Motors Chairman and CEO Edward E. Whitacre, Jr. will step down as chief executive officer on September 1, 2010, and as chairman of the board by the end of the year. Dan Akerson, 61, who has served on the GM board of directors since July 2009, will become CEO on September 1 and chairman by the end of the year, ensuring a smooth transition and continued positive momentum for company. Whitacre, 68, joined GM as chairman of the board on July 10, 2009.  On December 1, 2009, he was named chief executive officer.

“My goal in coming to General Motors was to help restore profitability, build a strong market position, and position this iconic company for success,” said Whitacre. “We are clearly on that path.  A strong foundation is in place and I am comfortable with the timing of my decision.”

 “Dan Akerson has been actively engaged in and supportive of the key decisions and changes made at the new GM.  He brings broad business experience, decisive leadership, and continuity to this role,” according to Pat Russo, lead director on the GM board. “The board of directors deeply appreciates the leadership Ed has provided and is pleased with the serious commitment Dan is making to the company. We look forward to his leadership.”

In addition to serving on the GM board since July 2009, Akerson has had a distinguished career in finance as a managing director at the Carlyle Group and in telecommunication, serving as chairman and chief executive officer of XO Communications and at Nextel Communications.  He was also chairman and CEO of General Instrument Corp.

“There are remarkable opportunities ahead for the new GM, and I am honored to lead the company through this next chapter,” said Akerson.  “Ed Whitacre established a foundation upon which we will continue building a great automobile company.”

General Motors 2nd Quarter Profit Of $1.3 Billion Bigger Than 1st Quarter

General Motors Company recorded second quarter revenue of $33.2 billion producing net income attributable to common stockholders of $1.3 billion, resulting in earnings per share on a diluted basis of $2.55. GM's second quarter earnings before interest and tax (EBIT) was $2.0 billion. GM North America's EBIT in the second quarter was $1.6 billion, up from $1.2 billion in the first quarter. GM Europe had a loss before interest and taxes of $0.2 billion, an improvement of $0.3 billion from the first quarter. GM International Operations posted EBIT of $0.7 billion, down from $1.2 billion in the first quarter.

Cash flow from operating activities was $3.9 billion and after adjusting for capital expenditures of $1.1 billion, free cash flow was $2.8 billion.  GM ended the second quarter with $32.5 billion in cash and marketable securities, including funds in the Canadian Health Care Trust escrow.

2011 Nissan Juke Will Start at $18,960 In October

The 2011 Nissan all-new JUKE will have a starting Manufacturer's Suggested Retail Price of $18,960 (excluding applicable tax, title, license and destination charges) when it goes on sale in October. That's just $1,500 less the starting price of its bigger sibling the Rogue. The 2011 Juke is available in eight models, with a standard 188 horsepower 1.6-liter Direct Injection Gasoline Turbo engine mated to a choice of two transmissions, the Xtronic CVT™ (Continuously Variable Transmission) with S-Mode and a 6-speed manual transmission (SV FWD and SL FWD models only).  Fuel economy is rated at 27 mpg City and 32 mpg Highway for JUKE CVT FWD models.

JUKE S CVT FWD $18,960 USD
JUKE SV MT FWD $20,260 USD
JUKE SV CVT FWD $20,760 USD
JUKE SL MT FWD $22,550 USD
JUKE SL CVT FWD $23,050 USD
JUKE S CVT AWD $20,460 USD
JUKE SV CVT AWD $22,260 USD
JUKE SL CVT AWD $24,550 USD

New Saab Story Comes From "A Perfect Storm"

Saab Chairman Victor Muller, also CEO of Spyker cars of the Netherlands, speaking at the CAR Management Briefing Seminars in Traverse City last Thursday, calls his deal to buy Saab from General Motors the result of "a perfect storm" - GM went bankrupt and was reorganizing in early 2009 and put Saab up for sale when other OEMs were struggling and no other big players could justify a purchase - Muller paid $74 million, the price of a wind tunnel, for one billion euros worth of assets. Also, Saab will be partnering with GM through 2024, according to Muller.

Muller says the new 9-5 sedan arriving in showrooms this week will compete with the Audi A6, Mercedes-Benz E-Class and BMW 5 Series. Muller says the Saab 9-4X crossover which shares components with the Cadillac SRX will begin production in April of next year and an all-new Saab 9-3 is coming in 2012. Saab production levels have plummeted from 120,000 to 130,000 just three years ago. Muller is looking to looking to lower the break-even production level to 85,000 vehicles, starting off this year at 50 to 60,000 and hopefully reaching 100,000 next year.

Muller's math to profitability is that currently 1.5 million people own a Saab and 4.5 million at some point have driven a Saab so getting old customers back is the ticket. Those customers went to Audi, followed by BMW, Mercedes-Benz, and Volvo. Also ridding the perception that a Saab is a "glorified Opel". Another reason that sales slid was that an old model was coming off the line which may be able to bring a customer back twice but at 13 years since a redesign business drys up.

Muller is "looking for a bright future" and has plans for a 9-3 hybrid and EV (electric vehicle) and hopes for a revival of the 9-2, the premium A segment small car that gave Saab dominance in the 1950's and '60's.

In the fullness of time we'll know if Muller's love for the brand, "perfect storm" purchase and business model will bring back customers and make the Saab flourish again.

General Motors Chairman & CEO Ed Whitacre Looks Back & Forward

Ed Whitacre, a 68 year old Texan who spent 44 years at AT&T (previously SBC) serving as its Chairman for 18 years before retiring in April of 2007, took over as Chairman of General Motors in June 2009 after receiving a call from the Treasury Department. After initially telling them "no", he thought that having "always been a GM owner", he should reconsider. Whitacre told the audience at the Center for Automotive Research Management Briefing Seminars in Traverse City that "I took this job out of a sense of duty – the country put a lot of faith in GM and in the industry, and I wanted both to succeed."

Here are some of the highlights of his remarks which took us through the turnaround from bankruptcy to GM's first quarterly profit since 2007 in the first quarter of 2010 and today's renewed demand for its vehicles:

"First, we clarified the company’s focus. Today, GM has a clear and simple vision:  “Design, build, and sell the world’s best vehicles.”  That’s what we do… that’s all we do."
"Second, we reinvigorated the team and restructured the organization."
"In addition, we have brought new blood and fresh thinking into the management team … while retaining the auto expertise that is so important to our success.  It has also allowed us to open up opportunities for many of our younger talents – Mark Reuss running our North American team is a great example."
"Third, we’re moving faster and smarter. We’re changing the way we do business at GM – doing all we can to make smart decisions and make them fast… while clearing the underbrush that can impede good thinking."
"In June, for example, we launched a new subsidiary called GM Ventures to identify and develop new technologies."
"The fourth key to our ongoing turnaround – we’re making vehicles that people just can’t wait to buy.
Of course, as I’ve come to learn, it takes years to bring a new vehicle to market.  So we owe a debt of gratitude to the people who had the foresight to develop these awesome cars and trucks – people like Rick Wagoner, Fritz Henderson, Bob Lutz and others.  And I’m happy to report that the products we have in the pipeline are just as exciting as the ones we’re selling now.
So, that’s the foundation for GM’s turnaround."
"We want to reshape the company and help change the industry in the process.  And the opportunities for doing that are boundless… for all of us.  Let me give you three of my personal favorites:
First, is the industry’s growth potential.
In China, GM’s first half sales this year were up almost 50 percent compared to 2009.  That’s one reason we’ll roll out more than 10 new or upgraded products in China this year alone. GM is selling more vehicles today with four brands than we were last year with eight, which is very positive.
The second big industry opportunity we can all be excited about is technology. That’s why we’re so excited about the new Chevy Cruze Eco, which will get 40 mile-per-gallon on the highway.... We have aggressive plans to expand the number of hybrids and plug-in vehicles in our portfolio… and I know many of you are working on the same challenges at your companies.  The opportunities are huge… and we’re just beginning to see the possibilities.
The third opportunity is bringing innovation to how we market our products.
Last week, for example, Chevrolet became the first brand to pilot an app for the iPhone and iPad that allows salespeople to sell vehicles anywhere, anytime...."

"In fact, today, I’m pleased to announce that we concluded our dealer arbitration process, paving the way for the new GM dealer network. Starting November 1, we will have a network of about 4,500 U.S. dealerships in place to sell and service our Chevrolet, Buick, GMC, and Cadillac brands… and it will be the best network in the business. The GM dealer network will be the right size… and have the right dealers… to make our customers happy and keep them coming back.  Our network will be about 25 percent smaller than it was, but it will still be the nation’s largest.

In the mean time, we’ve embarked on what we believe is the largest facility makeover the industry has ever seen.  So far, we’ve updated more than 300 facilities; we expect to update more than 1,000 by the end of this year. For the first time in a while, our dealers are fully devoted again to what they do best…focusing on our customer.

So, GM has come a long way in a year’s time…and so has the industry.  In fact, I’d like to congratulate Chrysler and Ford for their progress during this period…as well as the suppliers, who toughed it out with all of us. Now, we’re on our feet again… getting into fighting shape… and taking the fight back to the marketplace."

In the Q and A that followed, Whitacre repeated that the government bailout loan has been paid back but they, the Government/taxpayers, still have a lot of equity/ownership in GM. He expects the upcoming IPO (Initial Public Offering) of stock to be the biggest in U.S. history. He doesn't like being called Government Motors saying "it turns off customers". He said "the timetable (for the IPO) is not there yet" with an S1 report still needed to be filed with the SEC.

Whitacre is optimistic that things are improving with dealers apparently screaming for vehicles and GM working hard to produce them. He says next week's second quarter earnings release will surprise people on the heels on GM's first quarter profit. Whitacre admitted that he now has his first Corvette and "no speeding ticket". He concluded by saying an all-new, redesigned Chevrolet Corvette will be coming soon.

Whitacre's rare speaking engagement seemed to impress the crowd. His delivery was simple and stated a straight forward mission and plan of execution, but keep mind this gathering depends on GM's success and survival, as do all us U.S. taxpayers.