I don’t think I have heard so much buzz in our industry as I have since the news leaked of this potential deal. Why in the world would GM want Chrysler? One potential outcome would be if GM only purchases the manufacturing assets and intellectual capital. This is how they bought Daewoo. That would allow them to combine the Chrysler products they want to keep manufacturing and sell them through their existing GM dealerships. This would be troublesome though because it would affect the current Chrysler franchise holders.
GM’s purchase of Chrysler would also give them more access to an additional 3 billion dollars in government loan guarantees for research in alternative fuel vehicles. Remember, GM partnered with Chrysler in the development of the 2 stage hybrid used in the Tahoe and Yukon. The Chrysler deal will most likely include GM selling Cerberus Capital the rest of GMAC. Cerberus owns 51% of GMAC and about 80% of Chrysler.
Of course, GM could purchase all of Chrysler’s assets much like Ford did with Volvo, and continue to operate the way it is. They could create some economies of scale making both companies more efficient. All of this is Monday morning quarterbacking on my part, since I have no input or insider knowledge. Drive Safely.
Friday, October 24, 2008
The GM Giant And Giant GMC Are Holding A Used Car And Truck Auction!
The success of the GM Employee Pricing for Everyone sale has caused both of Bob Smith Automotive Group’s dealerships to be over-stocked with used inventory. Soon we will be starting our year end events and currently GM’s incentives are equal to the Employee pricing on many of our most popular models. We must sell the used inventory to make room for the trades coming in November and December.
With the economy as tough as it is, we decided to hold a sale and auction. Here is how it works: We will post our inventory on our web page at www.gmgiant.com and www.giantgmc.com as well as in our print ads in the Star Democrat. We will give a “buy it now” price and give you the opportunity to make a bid. The bids can be made at our office, or you can place a bid online. If you wish to have us arrange financing in advance we will. All finance arrangements must be complete by October 31st. Our online auction is being done through a link with E-Bay. At noon on Saturday November 1st we will compare the in dealership bids to the online bids and declare who the purchaser is. We will reserve the option to accept any price at our discretion before November 1st.
I am not aware of anyone else trying anything like this. It is our effort to liquidate all used inventory by November 1st. This offers the consumer a real bargain on some of the cleanest used inventory in Maryland. The sale is going on now so don’t miss it.
With the economy as tough as it is, we decided to hold a sale and auction. Here is how it works: We will post our inventory on our web page at www.gmgiant.com and www.giantgmc.com as well as in our print ads in the Star Democrat. We will give a “buy it now” price and give you the opportunity to make a bid. The bids can be made at our office, or you can place a bid online. If you wish to have us arrange financing in advance we will. All finance arrangements must be complete by October 31st. Our online auction is being done through a link with E-Bay. At noon on Saturday November 1st we will compare the in dealership bids to the online bids and declare who the purchaser is. We will reserve the option to accept any price at our discretion before November 1st.
I am not aware of anyone else trying anything like this. It is our effort to liquidate all used inventory by November 1st. This offers the consumer a real bargain on some of the cleanest used inventory in Maryland. The sale is going on now so don’t miss it.
Saturday, October 18, 2008
You Can Order Your 2010 Chevy Camaro Today!
GM has just announced the early order program for Chevy Camaro? Yes, you can order a 2010 Camaro today and take delivery in the spring of 2009. GM is doing this in their words, “to get the launch right.” Often when a new model comes out, the factory speculates on the popularity of certain options, only to learn that they have guessed wrong. By taking early orders, GM can learn what the customers want in theses early orders and use this information to get the mix right. This will allow them to negotiate the supply of the most popular options with their vendors well in advance of the full run of the production line.
The Camaro concept car has been the hit of the auto show circuit for the past year, and the production model shown at the most recent shows has enjoyed even more popularity. The legendary Camaro is back with technology not even dreamed of in the early days of this high performance legend. Being the first one on your block to have the new Camaro is sure to tempt auto enthusiasts around the globe.
But this Camaro is not only a street burner, it is a gasoline sipper. And with a starting price of $22,995 it will fit the thriftiest of car enthusiast’s pocketbooks. The direct injected V6 engine with variable valve timing, boasts and impressive 300 horsepower while achieving an amazing 26 mpg on the highway, when teamed with the 6 speed automatic transmission with the tap to shift feature. The V6 is standard on the LT and LS models and also can be mated to a 6 speed manual shift transmission.
As if 300 horsepower isn’t enough, the Camaro SS version will be powered with a 6.2 Liter V8 engine that churns up 422 horsepower, 4 wheel disc brakes will stop this rocket, and GM’s StabiliTrack system will keep it on the road in high speed turns.
The all new Camaro will offer blue tooth technology and OnStar to keep you safe and sound. But probably the most appealing feature is the appearance. This car gets your automotive juices flowing as soon as you look at it. If you like to drive fast, or look like you are going fast just sitting still, the new Camaro could be your next vehicle. Order yours today and drive safely. For more information on the 2010 Camaro log on the www.gmgiant.com.
Friday, October 10, 2008
GM is Coming Back!
There is an axiom in the automobile business that says the best time to gain market share is in a down market. The reason for this is that when the economy is down, consumers are much more cautious with their spending, and purchase more out of need than emotion. It takes fewer sales to move the needle as the denominator in the equation is smaller. The trend is that once you gain market share in a down market, it is easier to retain it when the market heats up.
In each of the past three recessions since the 70’s the imports have gained market share only to retain it moving forward. In the 70’s the imports were cheaper. In the 80’s the quality story kicked in as the imports had fewer defects per thousand cars built than did the domestics. In the 90’s the imports dominated the fuel economy story and although they had become a bit more pricey than the domestics, offered new styling and good value.
Back in the 90’s GM decided to hire the best designers and engineers in the world, and go on a mission to build the best cars and trucks in the world. In spite of a lot of bumps in the road GM has done it, and the world is just now beginning to figure it out. While this was happening, Toyota began to learn what it is like to play in the same league as GM, and is now suffering from some of the diseases that plagued GM.
Toyota has suffered from class action law suits for engine sludge, frame rust through problems with Tacoma and more recalls than vehicle sales. Toyota’s service satisfaction scores are way below industry average while all of GM’s brands are way above industry average. And the flagship Camry V6 is no longer a recommended buy on Consumer Reports.
GM now is the fuel economy leader in more segments than any other manufacturer with the most models that get over 30 MPG highway. The 37 mpg Cobalt, and 33 mpg Malibu Hybrid prove that you can get great fuel economy without having to sacrifice room. GM had 29% market share in September, the highest in almost a decade and new offerings in the 09 model run will continue that growth. GM’s crossovers are dominating the industry and the new Chevy Traverse will be a market leader.
Chevrolet alone is on track to pass Toyota by year end as the best selling brand in America. The Chevy Silverado will absolutely smoke the Ford F150 in sales and the ashes will cover the also ran Tundra. Chrysler is going to build the trucks for Nissan because the truck they built didn’t sell and VW is asking Chrysler to build their vans. GM will sell over 9 million vehicles world wide and if GM was allowed to compete in Japan, the race for #1 in the world wouldn’t even be close. GM is still expected to win this year.
GM is back because of world class styling, quality and fuel economy. What is best is that it is an American company. And I might add that the Chevy Volt, the first mass production plug in hybrid will change the auto industry for ever, doing for GM what the Prius did for Toyota times 10. Folks, the economy may be bad, but GM is back and will dominate the automotive world once again. Drive safely.
In each of the past three recessions since the 70’s the imports have gained market share only to retain it moving forward. In the 70’s the imports were cheaper. In the 80’s the quality story kicked in as the imports had fewer defects per thousand cars built than did the domestics. In the 90’s the imports dominated the fuel economy story and although they had become a bit more pricey than the domestics, offered new styling and good value.
Back in the 90’s GM decided to hire the best designers and engineers in the world, and go on a mission to build the best cars and trucks in the world. In spite of a lot of bumps in the road GM has done it, and the world is just now beginning to figure it out. While this was happening, Toyota began to learn what it is like to play in the same league as GM, and is now suffering from some of the diseases that plagued GM.
Toyota has suffered from class action law suits for engine sludge, frame rust through problems with Tacoma and more recalls than vehicle sales. Toyota’s service satisfaction scores are way below industry average while all of GM’s brands are way above industry average. And the flagship Camry V6 is no longer a recommended buy on Consumer Reports.
GM now is the fuel economy leader in more segments than any other manufacturer with the most models that get over 30 MPG highway. The 37 mpg Cobalt, and 33 mpg Malibu Hybrid prove that you can get great fuel economy without having to sacrifice room. GM had 29% market share in September, the highest in almost a decade and new offerings in the 09 model run will continue that growth. GM’s crossovers are dominating the industry and the new Chevy Traverse will be a market leader.
Chevrolet alone is on track to pass Toyota by year end as the best selling brand in America. The Chevy Silverado will absolutely smoke the Ford F150 in sales and the ashes will cover the also ran Tundra. Chrysler is going to build the trucks for Nissan because the truck they built didn’t sell and VW is asking Chrysler to build their vans. GM will sell over 9 million vehicles world wide and if GM was allowed to compete in Japan, the race for #1 in the world wouldn’t even be close. GM is still expected to win this year.
GM is back because of world class styling, quality and fuel economy. What is best is that it is an American company. And I might add that the Chevy Volt, the first mass production plug in hybrid will change the auto industry for ever, doing for GM what the Prius did for Toyota times 10. Folks, the economy may be bad, but GM is back and will dominate the automotive world once again. Drive safely.
Thursday, October 2, 2008
Toyota’s September Sales Decline is one of the Worst in Their History in the US
GM’s Sales Were Way Ahead of All Manufacturers While Japanese Brands Plummeted
Part of the sad commentary of this economy is when you measure sales success by whose sales went down the least. Toyota’s sales were off 32.3% in September while “GM’s sales decline of 15.6% easily outpaced the rest of the industry,” according to Automotive News release on October 1, 2008. In fact all Asian brands were way off as the US economy has faltered. Honda sales were off 24% while Nissan was down 37%. Toyota said September sales results are the worst since June of 1987. Even Kia, down 27.8%, Mazda down 35.6%, and BMW and Mini down 25.7% all blamed the US economy for sluggish sales.
In my research for GM’s 100th anniversary, I discovered that GM was largely responsible for the US manufacturing support of the US and the Allies in World War II. GM built aircraft, tanks and trucks for the war effort. In fact GM’s planes and tanks were instrumental in the Allies victory in WWII.
Today GM is in a different war with Japan and Germany. Asian and European cars have for the first time in history, dominated the US Market. Just this year, American car companies gave the imports the lead in vehicle sales. It is hard for me to imagine that the same country that rallied to defeat these countries have now taken to favoring their products to those built by the same companies that helped the Allies and the US win World War II.
But the US auto industry brought this pain on in the 80’s by putting short term profit and huge labor contracts above quality and styling. GM has renegotiated these labor contracts and focused on quality and styling. Today, GM is fighting this war against the Asians and Germans with the same determination they did during World War II. But today it is a war for consumer dollars. GM’s cars and trucks are rated as good as or better than anything in the world, and GM has the tough job of convincing the customer to put GM cars and trucks on their shopping list.
Today, the GM Giant is trading more Asian and European imports and transplants than ever in our history. Customers that are driving these cars are learning that our product offerings are world class and American. Our sales are off, but at least for September, not as much as the imports. Cars like the North American Car of the Year Chevy Malibu, and Motor Trend Car of the Year Cadillac CTS are leading GM to a return of total world automotive sales dominance. Customers who have previously defected to imports are slowly returning to GM to learn that we have offerings superior to Accord and Camry.
This economy has put a terrible strain on the auto industry. But when money is tight, shoppers are much more careful with their spending. It looks like, at least for September, the smart money went to General Motors. Drive Safely.
Part of the sad commentary of this economy is when you measure sales success by whose sales went down the least. Toyota’s sales were off 32.3% in September while “GM’s sales decline of 15.6% easily outpaced the rest of the industry,” according to Automotive News release on October 1, 2008. In fact all Asian brands were way off as the US economy has faltered. Honda sales were off 24% while Nissan was down 37%. Toyota said September sales results are the worst since June of 1987. Even Kia, down 27.8%, Mazda down 35.6%, and BMW and Mini down 25.7% all blamed the US economy for sluggish sales.
In my research for GM’s 100th anniversary, I discovered that GM was largely responsible for the US manufacturing support of the US and the Allies in World War II. GM built aircraft, tanks and trucks for the war effort. In fact GM’s planes and tanks were instrumental in the Allies victory in WWII.
Today GM is in a different war with Japan and Germany. Asian and European cars have for the first time in history, dominated the US Market. Just this year, American car companies gave the imports the lead in vehicle sales. It is hard for me to imagine that the same country that rallied to defeat these countries have now taken to favoring their products to those built by the same companies that helped the Allies and the US win World War II.
But the US auto industry brought this pain on in the 80’s by putting short term profit and huge labor contracts above quality and styling. GM has renegotiated these labor contracts and focused on quality and styling. Today, GM is fighting this war against the Asians and Germans with the same determination they did during World War II. But today it is a war for consumer dollars. GM’s cars and trucks are rated as good as or better than anything in the world, and GM has the tough job of convincing the customer to put GM cars and trucks on their shopping list.
Today, the GM Giant is trading more Asian and European imports and transplants than ever in our history. Customers that are driving these cars are learning that our product offerings are world class and American. Our sales are off, but at least for September, not as much as the imports. Cars like the North American Car of the Year Chevy Malibu, and Motor Trend Car of the Year Cadillac CTS are leading GM to a return of total world automotive sales dominance. Customers who have previously defected to imports are slowly returning to GM to learn that we have offerings superior to Accord and Camry.
This economy has put a terrible strain on the auto industry. But when money is tight, shoppers are much more careful with their spending. It looks like, at least for September, the smart money went to General Motors. Drive Safely.
Friday, September 19, 2008
Low Monthly Payments Catapulted GM Ahead of Ford in the Late 1920’s!
As I have been researching GM’s past, it is amazing how much some things just haven’t changed since then. Styling, prestige and monthly payment were just as important in the 1920’s as they are today.
In 1923, Alfred P. Sloan, a graduate of the prestigious Michigan Institute of Technology with a degree in electrical engineering, became the president of General Motors. Under his reign, GM passed Ford Motor Company as the largest automobile company in the United States. Sloan is credited for this as he developed management techniques that helped him handle the complexities of what was becoming a monster of a company, manufacturing and selling just about everything you could imagine in transportation, from planes and trains to automobiles.
Sloan used consumer credit and low monthly payments to allow far more people to buy GM vehicles, while Ford was moralistically opposed to credit. Sloan paid particular attention to consumer demands. While Ford was building basic transportation, Sloan recognized that consumers no longer wanted the most basic and cheapest model. They wanted power, styling and prestige. Credit allowed people to afford more car.
Sloan is credited with developing the pricing ladder that GM still uses today. By having many brands GM could meet the needs of buyers from entry level to total luxury, and move customers up through the brands as their position in life improved. Sloan felt that Chevrolet should represent the car that everyone can afford, up through Pontiac for the sports car enthusiast, Oldsmobile for entry luxury, then Buick and ultimately Cadillac for the most discriminating buyer.
Alfred Sloan also began a plan to change the styling of cars every year. He knew that as styles changed, consumers would want the new model, and planned obsolescence was invented. It would be a while before Ford would catch on to this new marketing. It worked and it worked well for GM as sales of their brands soared.
Today people still use credit to buy more car. Styling changes happen every year, and consumers are still motivated by styling, power and prestige. Of course today we must ad fuel economy as a consideration. I think Sloan would be proud that GM has more models today that get 30 mpg highway than any other manufacturer.
The deal still can take the day. GM with its 100th anniversary is offering GM employee pricing, the same price they sell to their employees, to every customer through the end of September. This added to huge rebates, represents the best pricing GM has ever offered.
Some things have changed over time and some have not. In 1930 GM was known for the most stylish, powerful, and best built motorcars in the world. Today GM’s quality and styling are world class.
For fore information on GM vehicles, or to comment on this article go to www.gmgiant.com. Drive safely!
In 1923, Alfred P. Sloan, a graduate of the prestigious Michigan Institute of Technology with a degree in electrical engineering, became the president of General Motors. Under his reign, GM passed Ford Motor Company as the largest automobile company in the United States. Sloan is credited for this as he developed management techniques that helped him handle the complexities of what was becoming a monster of a company, manufacturing and selling just about everything you could imagine in transportation, from planes and trains to automobiles.
Sloan used consumer credit and low monthly payments to allow far more people to buy GM vehicles, while Ford was moralistically opposed to credit. Sloan paid particular attention to consumer demands. While Ford was building basic transportation, Sloan recognized that consumers no longer wanted the most basic and cheapest model. They wanted power, styling and prestige. Credit allowed people to afford more car.
Sloan is credited with developing the pricing ladder that GM still uses today. By having many brands GM could meet the needs of buyers from entry level to total luxury, and move customers up through the brands as their position in life improved. Sloan felt that Chevrolet should represent the car that everyone can afford, up through Pontiac for the sports car enthusiast, Oldsmobile for entry luxury, then Buick and ultimately Cadillac for the most discriminating buyer.
Alfred Sloan also began a plan to change the styling of cars every year. He knew that as styles changed, consumers would want the new model, and planned obsolescence was invented. It would be a while before Ford would catch on to this new marketing. It worked and it worked well for GM as sales of their brands soared.
Today people still use credit to buy more car. Styling changes happen every year, and consumers are still motivated by styling, power and prestige. Of course today we must ad fuel economy as a consideration. I think Sloan would be proud that GM has more models today that get 30 mpg highway than any other manufacturer.
The deal still can take the day. GM with its 100th anniversary is offering GM employee pricing, the same price they sell to their employees, to every customer through the end of September. This added to huge rebates, represents the best pricing GM has ever offered.
Some things have changed over time and some have not. In 1930 GM was known for the most stylish, powerful, and best built motorcars in the world. Today GM’s quality and styling are world class.
For fore information on GM vehicles, or to comment on this article go to www.gmgiant.com. Drive safely!
Friday, August 29, 2008
Contest is Underway!
Dealerships Giving Away 10,000 Gallons of Gas This Weekend
The Bob Smith Automotive Group is taking on the gas crisis and helping you keep your tank and wallet filled! This weekend, the Bob Smith Automotive Group will register visitors to win 10,000 Gallons of Gas at the GM Giant in Easton and Giant GMC in Federalsburg.
The first 1,000 participants will be eligible to take a chance to win 10,000 Gallons of Gas- a whole 18 wheel tanker truck full of gas. Participants enter a 5 digit code in the bank vault and the correct entry will spring open the vault. The winner will receive a pre-paid credit card for $40,000- since the contest was orchestrated when gas was still $4/gallon! Today, it is actually worth 11,765 gallons of gas… enough gas to last the average person 24 years!
Visitors can register at the GM Giant, on Route 50 in Easton, or Giant GMC on Federalsburg Highway in Federalsburg, starting at 10am on Friday, Saturday, and Monday. A tanker truck from Tri Gas & Oil will be placed at the dealership in Easton with a banner facing Route 50 traffic promoting the sweepstakes.
The promotion is part of the Labor Day “Employee Pricing for Everyone” sale currently being offered by General Motors through September 2, 2008. Complete rules and details available at www.gmgiant.com. The contest is limited to the first 850 participants in Easton and the first 150 participants in Federalsburg. It is possible to have different winners at each location.
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