Luxury sports car maker, Spyker, has filed a lawsuit against General Motors accusing them of deliberately bankrupting Saab by blocking deals with foreign investors. When Spyker bought Saab from GM in 2010, the agreement allowed GM to retain the rights to technology and patents used in the engineering of Saab vehicles. As Saab struggled to avoid a court action to liquidate the company, Chinese automakers, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade came forward with $140 million dollars to invest in the company with an expected additional investment of up to $708 million to build Saab vehicles in Sweden’s Trollhattan plant as well as open a factory in China. According to Spyker, the deal was blocked by GM executives because they did not want Chinese investors to have access to GM technology, allowing them to compete against the U.S. auto maker in China, one of its most important foreign markets. Spyker Chief Executive Victor Muller accused GM of “deliberately pushing Saab over the cliff”. Spyker is seeking $3 billion in damages, the estimated future value of Saab if Zhejiang Youngman had been allowed to buy the Swedish auto maker and invest in it.

The lawsuit comes as GM struggles to survive in Europe. The auto maker said last week that its second-quarter earnings plunged 38% due to a $361 million loss in the company’s European operations.

General Motors (GM) new marketing plan aimed at clearing out remaining inventory of Chevrolet vehicles, will allow customers to return their vehicle for a refund if they are not satisfied with their purchase. Chevrolet’s “Love It or Return It” offer will allow customers of any new 2012 and 2013 model year vehicles, to a full refund as long as there is fewer than 4,000 miles and the customer has driven the vehicle for at least 30 days.

Buyers who choose to return their vehicle will get all their money back, including sales tax. Unfortunately, expenses such as any additional taxes, licensing, registration and extras such as extended warranties will still have to be paid by the customer. GM hopes the plan will encourage customers to give Chevrolet vehicles a try, winning back some of the market share lost to import oriented markets. The promotion will be offered until Sept. 4, 2012.

General Motors (GM) have announced a recall for certain 2012 Chevrolet Captiva sport passenger vehicles because they may fail to conform to the park brake performance requirements of the federal motor vehicle safety standards. According to the recall report, the park brake cable may not be fully seated and could separate from its connector. The park brake could become inoperative and the vehicle could roll away unexpectedly. Dealers will inspect and secured the cable as necessary. Owners wanting more information on the problem can contact the Chevrolet owner center at 1-866-694-6546.

German automobile manufacturer BMW and Japanese automobile manufacturer Toyota have announced that they will be expanding a 2011 agreement between the two companies to share strategic technologies in four different areas. BMW and Toyota emphasized that they have no intentions of building stakes in each others companies. Both say they share the same strategic vision of sustainable individual future mobility and feel their alliance will only strengthen both companies competitive position in sustainable future technologies. The agreement includes:

  • The joint development of a fuel cell system.
  • The joint development of architecture and components for a future sports vehicle.
  • Collaboration on power train electrification.
  • Joint research and development on lightweight technologies.

The agreement will also end any further discussions of BMW working with General Motors and will eventually dissolve a joint venture with France’s PSA Peugeot Citroen to share components for hybrid cars.

The National Highway Traffic Safety Administration (NHTSA) is expanding an investigation into defective power window switches in some Toyota and GM vehicles. Both investigation began in February after vehicle owners reported intermittent power windows, the smell of smoke, and in rare occasions fires. If the investigation leads to a recall, approximately 1.4 million Toyota and 342,000 GM vehicles could be involved. The vehicles under investigation includes:

  • 2007-2009 Toyota Camry
  • 2007-2009 Toyota Yaris
  • 2008 Toyota Highlander Hybrid SUVs
  • 2006-2007 Chevrolet TrailBlazer SUVs

The NHTSA said that it also will evaluate other GM vehicles with the same underpinnings. They include:

  • Buick Rainier
  • GMC Envoy
  • Isuzu Ascender
  • Saab 9-7X SUVs

Last week GM announced that they will no longer be paying to advertise on Facebook, except for the pages that cost nothing to create. GM said that with the continuing rise of advertising costs, they question the effectiveness of certain media and are restructuring where the money is spent in order be more effective. Price concerns are not only confined to GM, with many large companies saying it is hard to know where is the best place to put their advertising money. The announcement came days before the highly anticipated Facebook stocks were to be publicly offered. The uncertainty in Facebook advertising has dampened enthusiasm for the stock as the shares for the social networking company tumble.

This week GM continues to cut its spending as they announce that they will not advertise in the next Super Bowl. According to GM’s global marketing chief, the Super Bowl advertising is effective but has become too expensive to justify the cost. Part of the GM advertising overhaul will include an emphasis on markets outside of the U.S., where GM hopes to expand into up-and-coming markets. Last year, GM spent almost $5 billion on ads.

After nearly a decade of production, General Motors has announced that 2013 will be the last year that they will be manufacturing the Chevrolet Avalanche. The vehicle has been labeled as starting the boom toward crew cab pickups due to its innovative design and unique features. Not only does it offer the passenger comfort of a SUV, but doubles as a work truck by allowing drivers to extend the length of the cargo area from five to eight feet by removing its “midgate”. The truck has sold over 580,000 units since being released in 2001, but sales tapered off as buyers gravitated toward standard pickups which became available with four doors and a broad range of car like features.

GM said it will end production of the vehicle with a 2013 special edition model called the Black Diamond. This special edition Avalanche will feature body-colored bed surrounds, unique badging, and additional features like rear cameras, and park assist standard on LS and LT models. Chevrolet said that the Black Diamond Avalanche edition will get an $2,500 price cut across the entire lineup.


The National Highway Traffic Safety Administration (NHTSA), has opened an investigation into engine fires in some 2011 Chevrolet Cruze and 2010 Jeep Wrangler vehicles. Of the ten complaints received, two Chevy Cruze owners reported complete loss of their vehicle, and eight Jeep Wrangler owners stated that the fire started in the engine while driving. The investigation will have the NHTSA reviewing early warning report data to assess the scope and frequency of the alleged defect. If the investigation lead to a recall, almost 180, 000 Cruze and 100,000 Wrangler vehicles could be involved.