Category Archives: General Motors

News about General Motors automobile manufacturer. News about General Motors recalls, technical service bulletins (TSB), and problems regarding General Motors vehicles.

LA Auto Show Speeds Into The Electric Car Era

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The sales of electric cars may not be doing as well as first hoped, but the displays at this years Los Angeles Auto Show hopes to change that. GM’s Chevrolet Volt, the 2011 Green Car of the Year, is one of several displays that hope to spark interest in the sales of green cars. The Volts rival, the Nissan leaf, along with Tesla’s Toyota RAV4 EV, the Fisker Karma, the Mitsubishi I-MiEV, and every other car maker’s electric or hybrid car will be there vying for the green consumers interest.

This year’s show will feature a record of debuts with fifty new vehicles unveiled on press day. This year’s show features more elaborate and interactive exhibits and more manufacturers, making it one of the most dynamic LA Auto Shows in years. The annual event, held at the Los Angeles Convention Center and will be open to the public November 19-28.

Demand For GM Stocks Increase Offering

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A perceived demand for GM stocks has led the company to bump up the price of its upcoming share offering. The previous estimate of $26-$29 has increased to $32-$33. The automobile manufacturer has also increased the size of its preferred shares offering from 60 million to 80 million. At the current pricing, GM could raise nearly 18 billion dollars, which would help repay some of the 50 billion dollar taxpayer bailout.

According to Michelle Krebs, senior analyst at Edmunds.com, “The increased share pricing is a vote of confidence in the company and in the stock it is offering. It is a sign that the management of General Motors has done an extremely good job pitching the stock to investors and highlighting its positives over its challenges.” Strong sales on new cars and trucks helped General Motors earn $2 billion in the third quarter. Boosted by higher prices from newly introduced models and from overseas sales, the third quarter earnings nearly matched the first two quarters of the year combined.

Not everyone feel that the stock offering is ready. Consumer advocate Ralph Nader and two other consumer groups are asking that the government delay the offering in hopes of getting a better return. They say the offering is oversubscribed and a plague of accounting errors by GM, pose a risk factor to the IPO.

According to an Automotive News source, Chinese companies are among a handful of firms looking for a stake in GM. Others include European industrial groups, private equity firms and sovereign wealth funds. GM CEO Fritz Henderson acknowledged talks are ongoing between GM and six Opel/Vauxhall suitors, but couldn’t reveal any names because of a confidentiality agreement.

Buick And Cadillac Recalled For Engine Fires

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General Motors is recalling almost 14,000 2010-2011 Buick Lucerne and Cadillac DTS automobiles in the United States for a problem with the power steering. According to the National Highway Traffic Safety Administration (NHTSA) there have not been any injuries related to the problem but there have been four reported fires.

After investigation, GM found that the starter and alternator cables were installed too close to the power steering conduit. The contact between the cables wore the conduit and wire insulation, resulting in an ignition source for the leaking steering fluid. The worn lines could also lead to a battery short.

Dealers will inspect and re-route harnesses in the recalled vehicles, as well as hold any unsold cars under the recall until the inspections and rectification can be made.

Automobile Recalls For October 2010

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  • BMW and Rolls-Royce are recalling vehicles for a leak in a check valve of the brake vacuum pump that could lead to the loss of Power assisted braking. The vehicles affected by this recall are:
    • 2004-2010 5-Series
    • 2004-2010 6-Series
    • 2002-2008 7-Series
    • 2003-2010 Phantom
    • 2007-2010 Phantom Drophead coupe
    • 2008-2010 Phantom coupe

    Owners can contact BMW at 1-800-525-7417, for more information.

  • Hyundai is recalling some 2011 Sonata vehicles built between December 2009 to September 2010. Some of these vehicles may have an improperly assembled steering columns that could lead in loss or reduction of steering. Dealers will inspect the steering column intermediate shaft universal joint connections for proper assembly and torque and will update the power steering software free of charge. Owners may contact Hyundai customer service center at 1-787-999-3333.
  • Mercedes Benz is recalling some 2010 C-class, E-class and 2010-2011 E-class vehicles for a problem with the power steering. The problem is being blamed on connections that have been improperly torqued during manufacturing. Owners may contact Mercedes-Benz at 1-800-367-6372 for more information.
  • Chrysler is recalling some 2010 Sebring, 300, Charger (LX), Dodge Challenger (LC), Avenger (JS), Journey (JC), and 2011 Dodge Ram light duty pickup (DS) vehicles for power steering problems. The crimp on the power steering pressure hose assembly may leak fluid on the engine creating a fire hazard. Owners may contact Chrysler at 1-800-853-1403 for additional information.
  • GM is recalling 2009-2010 Chevrolet Impalas for front safety belt webbing that may have not been properly secured to the seat. Dealers will inspect and repair recalled vehicles free of charge. Owners may contact Chevrolet at 1-800-630-2438 or at the owner center at www.gmownercenter.com.

GM To Release An In Car Facebook App

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Despite criticism from Transportation Secretary Ray LaHood, General Motors continues to carry forward with a new OnStar application that allows drivers to listen to Facebook messages as well as update their status. In recent years, LaHood has worked to reduce the problem of distracted driving, and has specifically disapproved of the idea of letting drivers have audio access to social media sites like Facebook. He feels that this OnStar app. is the “biggest distraction of them all” , and that the government should “go further” to focus on driving safety. He has proposed that all states should have a law banning texting behind the wheel and that Congress should pass a comprehensive distracted driving law.

OnStar President Chris Preuss said the company is confident in the safety of the feature after conducting driving tests and has no plans to drop it. “Not only is it safe — all things relative in the vehicle — it’s actually a benign activity,” Preuss said. GM has found that the number of airbag deployments was lower during the activation of hands-free calls than during other types of driving.

GM hasn’t yet offered the new feature to all of OnStar’s subscribers. The hands-free feature is being tested mainly by GM employees and some customers who have 2008 or newer GM models.

Chinese Company Seeks G.M. Stocks

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G.M. is planning to hold its first public stock offering in late November, giving the Treasury Department its first opportunity to begin selling off the 61 percent stake in G.M. How many shares the government decides to sell will be determined by the price offered. In order to break even, the Treasury Department estimates that the stock must sell for almost $135.00 per share.

Last week, the Treasury Department said it would not seek special deals with large investors to buy big chunks of its stake to ensure that small investors get a fair chance at buying GM stocks. “We expect that a large and diverse group of institutional investors will be offered an opportunity to participate, with no single investor or group of investors receiving a disproportionate share or unusual treatment.” the Treasury said.

But concerns about foreign influence over the largest American automaker are growing as Chinese automaker, the SAIC Motor Corporation, expresses interest in buying a stake in GM. The Shanghai-based company has had a longtime partnership with G.M. in China. They are one of China’s largest automakers and recently bought half of G.M.’s India division.

There was no comment from the Treasury about the possibility of a foreign company buying a big stake in G.M.

OnStar Apps For The Chevrolet Volt EV

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Chevrolet and OnStar unveiled the first working smartphone application that will allow owners 24/7 connection and control of vehicle functions and OnStar features remotely. The first to receive this new technology will be the Chevrolet Volt electric vehicle which is scheduled to hit the show rooms later this year.

The Chevrolet Volt OnStar smartphone application is designed to enhance the Volt ownership experience with interaction and control never offered before.

  • With this application, owners will be able to remotely monitor and charge their vehicle and can be sent an e-mail informing them of the status.
  • Traditional OnStar features such as door lock, unlock and remote horn and lights – which have typically been accessible only through a call into the OnStar call center – will now be available via the application.
  • Volt drivers can also view and manage vehicle systems and commands from the vehicle, the internet or through a monthly OnStar Vehicle Diagnostics e-mail.
  • The new services, including the ability to read text messages aloud, play music from the Internet-based provider Pandora and post updates to Facebook, won’t be available for a few months, but these and other apps are in the testing phase.
  • Additional upgrades that OnStar is planning include hardware to turn the cars into roving Wi-Fi hotspots. This will allow passengers to share the wireless Internet connection using other devices, like laptops and tablet computers, in the car. The Wi-Fi option won’t appear in 2011 models, but they could be upgraded with U.S.B. attached Wi-Fi routers in the future.

Chris Preuss, president of OnStar said that OnStar is taking a measured approach and is sensitive to the issue of driver distractions. “There’s the issue of what you can do, and then there’s the issue of what you should do,” he said. “We are going to be extremely vigilant on this issue. Just because something is possible, doesn’t always mean we should do it.”

Toyota Rav4 EV Debuts At The LA Auto Show

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It is no secret that Toyota and Tesla have joined forces to develop an all electric Rav4 that they hope will shake up the electric vehicle market. Tesla has already delivered a working RAV4 EV to Toyota earlier this summer and will debut it to the public at the Los Angeles Auto Show.

The vehicle is likely to be one of the stars of the Auto Show, which traditionally hosts “green” vehicle debuts. GM’s Chevy Volt and Nissans Leaf will also be there, but Toyota’s Rav4 hopes to attract the consumer who wants an electric vehicle, but wants something bigger than a compact car.