According to reports from General Motors, Ford, and Chrysler, automobile sales rose significantly in September. Chrysler reported the biggest gain at 27%, Nissan with a 25% increase and GM at 20%. Even though Japanese auto makers were running their factories at full capacity for the first time since the March earthquake and tsunami, Toyota and Honda continue to trail the industry with a drop in US sales. The biggest rise came from the sales of full size pickups, sport utility, and crossover vehicles, a trend that seems to coincide with dropping gas prices. Despite the poor sales at the beginning of the year, some auto makers are expecting full year sales to top13 million before the end of the year, a level that has not been seen since 2008.
Category Archives: General Motors
OnStar Changes Privacy Policy
The automobile communication service provider OnStar will be changing its privacy policies after complaints of privacy issues from consumers. Last week, OnStar announced changes in their policy that would allow them to collect and sell non-personalized information about location, speed, odometer reading, and seat belt usage even if the customers service has been canceled.
According to Linda Marshall, OnStar’s President, OnStar will no longer keep former customers connected and they’ll no longer have to take action to “opt out” of the data collection system once their service has been discontinue. Marshall added that the service regrets concerns generated by its recent policy change and therefore has decided to reverse it.
Consumers Question OnStar Privacy Policy
Recent updates to OnStar’s privacy policy, has consumers asking the Federal Trade Commission (FTC) to investigate the company for unfair trade practices. According to the new policy, vehicles with the OnStar service will continue to be monitored even after the customer has canceled their service. The policy changes allows OnStar the right to sell information gathered such as location, speed, odometer reading, and seat belt usage to third parties. OnStar has assured customers that privacy is very important to them and they do not sell any personalized information about their customers.
GM Sonic Built In America
There is a myth in the auto industry that auto manufacturers can’t build subcompact cars in the United States because the costs of building the vehicle are just too high. The Honda Fit is built in China and Brazil, the Mazda 2 is built in Japan and Mexico, the Toyota Yaris is built in Japan, and even the Ford Fiesta is built in Mexico, to name a few. General Motors hopes to dispel this myth with one of the only subcompact cars built in America, the “Sonic”. In an agreement between Detroit and the United Automobile Workers (UAW), GM has been building the Sonic in a revolutionary designed plant in Detroit.
Modeled after some of their most efficient plants in Germany and Korea, GM has spent millions to renovate their Orion plant that nearly closed two years ago. Newly trained workers and state of the art equipment offers cost saving efficiency, in house suppliers reduce inventory costs and increase productivity, and the factory itself is one of the company’s greenest. It produces less waste and reduces energy costs by using methane gas from neighboring landfills to power some operation. While renovated factory has been a major factor in cutting costs, an agreement between GM and the U.A.W., allowed GM to cut labor costs as well, reducing the overall production costs significantly.
According to GM’s head of labor relation, “We wanted to prove we could do it and had to proceed with an open mind. The entry-level wage structure was an important enabler, because the smaller the car the less the margin.” The U.A.W. said the union considered the significance of a competitive subcompact to G.M.’s overall product lineup. The Sonic is the first subcompact that G.M. has tried to build in its home market since the Chevrolet Chevette almost 40 years ago, so it is important that the union compromise in order to prevent manufacturing jobs to overseas employers.
GM Recall For Colorado And Canyon Trucks
General Motors has issued a recall for certain 2011 Chevrolet Colorado and 2011 GMC Canyon trucks with 2.9 or 3.7 liter engines and four speed automatic transmissions. According to the recall, the trucks may have been built with an automatic transmission adjustment clip that may not keep the shift cable in the correct position. The shift lever may not show the correct position of the transmission gear resulting in drivers thinking the vehicle is in park when it is not. This condition could result in the vehicle unexpectedly rolling away or the driver may not be able to start the engine. Owners wanting more information on the recall can contact Chevrolet at 1-800-630-2438 or GMC at 1-866-996-9463.
GM Recalls 2011 Cadillac SRX For Air Bags
General Motors has announced a recall for certain 2011 Cadillac SRX crossover vehicles for failing to meet the requirements of the vehicle safety standards for occupant crash protection. The problem is being blamed on a programing error that turns off the right side roof rail airbag if the passenger sensing system does not sense that the front passenger seat is occupied. Safety standards state that in the event of an accident, the front passenger seat airbag should deploy to protect the rear occupant. Cadillac SRX owners receiving the recall can bring in their vehicles to dealers who will reprogram the sensing and diagnostic module free of charge. For more information contact Cadillac at 1-866-982-2339 or go to the owner center at www.gmownercenter.com.
Chevy Volt Tax Incentives Not Guaranteed
With the price of fuel on a steady rise, consumers have turned to environmentally friendly hybrid and electric vehicles. The demand for these vehicles is leading to shortages throughout the United States and have resulted in dealership markups, some over $20,000 above the suggested retail price. Government incentives allow a $7,500 tax credit on these vehicles, but consumers may be surprised to find that some Chevrolet Volts found on dealership lots are being sold as “used” and no longer qualify..
A report in the National Legal and Policy Center (NLPC), say that some Chevrolet dealers are selling hybrid cars to other dealerships who are claiming the tax credits for themselves. Mark Modica, and investigator for the watchdog group, claimed that one Chicago Chevrolet dealer was selling a used Volt with only 10 miles on it. GM spokesman, Robert Peterson, says that while they do not encourage these transactions between dealerships, there is nothing GM or regulators can do about it. He does not believe that these transactions are done for the sole purpose of claiming the government tax credit, but are dealerships who are ineligible to sell the new Volts, trying to get these cars for their showrooms. He encourages dealers’ to have patience as the Chevy Volt rolls out nationwide. GM expects to produce only about 10,000 Volts this year, but hopes to increase production to 45,000 in 2012.
Electric Cars Get Top Crash Test Ratings
When the first mainstream electric cars, the Chevrolet Volt and Nissan Leaf, hit the market, they were advertised as being easy on the pocketbook and good for the environment. Because of their size and weight, may consumers had concerns that safety may have been compromised in order to meet the promised fuel efficiency. Recent crash tests done by the Insurance Institute for Highway Safety (IIHS) have shown that this just isn’t true. In fact, both cars have received “Top Safety Ratings” receiving the highest possible ratings for front, side, rear, and rollover crash protection. According to Joe Nolan, the IIHS chief administrative officer, Eco-minded drivers keen on switching to an electric vehicle should not think twice about buying a Leaf or Volt for highway driving. General Motors and Nissan have shown that safety doesn’t have to be sacrificed for fuel economy.
