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G.M. Determined to Make Malibu Its Sales-Stalwart Sedan

DETROIT — General Motors solved one problem this week by reaching a deal with the United Automobile Workers. Now it hopes its new Chevrolet Malibu will help solve another: winning sales and market share back from its Japanese rivals, according to the New York Times.

For years, family sedans have been a lower priority for General Motors and the other Detroit automakers. They focused instead on big trucks and sport utility vehicles, which earned tidy profits, while letting Toyota and Honda dominate the less lucrative market for cars.

Posted by Peter C. T. Elsworth  at 9:38 AM to GM | Permalink | Comments 0

How deal can pull GM even with Toyota

The tentative contract between General Motors and the UAW could quickly wipe out more than half the gap in labor costs between GM and Toyota, pulling Detroit ever closer to its Japanese rivals, according to industry experts cited by the Detroit Free Press.

And the gap should shrink further -- to about 6% by one estimate -- as lower-paid workers replace more-senior union members over time.

Posted by Peter C. T. Elsworth  at 9:33 AM to GM , Toyota , Unions | Permalink | Comments 0

Execs got millions for work on sale of Chrysler

At a time when Chrysler LLC is trying to win historic concessions from the UAW, news broke over the weekend in Germany that Chrysler President Tom LaSorda and former Chief Operating Officer Eric Ridenour were paid bonuses worth millions for their help with the sale of the Auburn Hills automaker earlier this year, according to the Detroit Free Press.

Erich Klemm, the top German labor representative on DaimlerChrysler AG's supervisory board, is quoted in a German newspaper calling the bonuses "unreasonably high." The exact amounts of the bonuses were unknown.

Posted by Peter C. T. Elsworth  at 9:30 AM to Chrysler | Permalink | Comments 0

Honda gains expected in September results

Ford and Chrysler probably lost U.S. market share last month as consumers spurned their pickups and SUVs in favor of fuel-efficient cars made by Honda, according to the Detroit Free Press.

Sales at Ford may have plunged 15% from a year earlier while Chrysler's fell 5.9%, according to the average estimates of seven analysts in a Bloomberg survey. Honda sales probably rose 9% while General Motors' gained 1%, helped by discounts, analysts said.

Posted by Peter C. T. Elsworth  at 9:26 AM to Chrysler , Ford , GM , Honda , Sales | Permalink | Comments 0