Count another falling brand under the GM logo sold. The latest car brand made famous by General Motors has been officially sold to Koenigsegg Automotive AB, a tiny company that produces only a dozen custom-made super cars a year.

GM bought a 50 percent stake in Saab for $600 million in 1990 and acquired the rest for $125 million in 2000. GM CEO Fritz Henderson said GM could build another car for the Saab brand. “Based on the preliminary plan, we expect the buyer to ask GM to build the 9-4x,” Henderson told reporters during an online chat Tuesday. “We will also provide support in terms of powertrain and other technologies.”

While the task to rebuild the Saab brand seems like a daunting task, Koenigsegg has been known to be successful without the expensive modes of advertising and promotions. Can you imagine a car company that does not advertise prices but is doing good in the business? That alone speaks highly of what the company can do to turn around the sagging fortunes of the Saab.

No financial figures have been revealed but many speculate the deal to be a virtual giveaway. The deal is expected to be finalized by the third quarter of the year.

(Source) CBS News

Tags: car brand, car company, Cars, daunting task, fortunes, General Motors, GM, gm logo, koenigsegg, modes, percent stake, powertrain, promotions, Saab, tiny company

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If you think the Mitsubishi iMiEV was the only vehicle Mitsubishi planned to release in the electric car market, then guess again! Today, Mitsubishi has bared that the iMiEV is only the start of their electric car revolution. The Japanese-based car company plans to unveil 5 more electric car vehicles by 2013.

Among the highlights of the next cars on Mitsubishi’s agenda include:

1. a left-hand-drive i-MiEV by the 2010 fiscal year for the European market
2. an electric commercial vehicle in the 2010 fiscal year
3. a larger electric car
4. a sportier version of the i-MiEV
5. a plug-in hybrid S.U.V. by the 2013 fiscal year

Whoa! Just when you thought that Mitsubishi was pinning its hopes on the iMiEV, this comes out. Now it seems interesting on what these additional electric cars would have to offer. While the iMiEV’s pricing was already bared ($45,600), you have to wonder how much these next cars would cost.

If you ask the motorists, they are surely counting on something cheaper. These cars really cost a fortune!

(Source) NY Times

Tags: car company, car market, car vehicles, electric car, electric cars, fiscal year, fortune, left hand drive, Mitsubishi, motorists

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For the new chief executive, steering the new Chrysler to help generate more profits for Fiat is the objective of this acquisition. Being given the controlling interest of Chrysler, the merger of both car companies are upbeat that they can get by the sagging fortunes that befell the U.S. car company.

Calling it a new season of capitalism, Marchionne is no stranger to business challenges. He was able to pull it off in 2004 when he took over Fiat and now, expectations are high that he will be able to pull it off again. Actually he has already started, assigning top Fiat managers in Detroit last week. This is seen as the preliminary moves to which a whole lot more is expected in the following months.

“Marchionne knows he has to race against time,” the Corriere della Sera newspaper of Milan explained. “He knows that when the debts are eliminated, the costs reduced to the levels of Japanese competitors with factories in the United States, then miracles of technology and marketing have to be performed to give back life to a company that in the last six months has almost halved its sales and which, even before the financial crisis, saw its share of the U.S. market fall from 15 percent to 10 percent.”

(Source) Washington Times

Tags: business challenges, capitalism, car companies, car company, debts, Fiat, financial crisis, helm, japanese competitors, marchionne, miracles, new man, race against time

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It appears that being tied up with the other regional brands has become a burden for most people. For Maruti, it looks like they are planning to go solo as they are on the prowl for expat and Indian engineers associated with the troubled US, Europe and Japan carmakers to form the core of their own cars from scratch in India.

Until now Maruti’s technical expertise had been restricted to giving facelift to older Suzuki cars like the Zen and Omni and upgrading them to meet the new emission norms. Although the Indian R&D team was involved in the development of Swift, Dzire and SX4, their major work was conceived in Japan. The local R&D centre, which will spearhead design and development of small cars in India, will change all that. The unit will also have testing facilities to carry out research on safety and newer technologies and will sport a testing track.

The company plans to up headcount of engineers 30% to 1,000 by 2010 to churn out new cars. Maruti, which has traditionally hired freshers from engineering colleges in India, will be tapping several top engineers and designers with experience to broaden talent pool. Maruti Suzuki India managing director S Nakanishi said: “India is Suzuki’s largest operating business, contributing more in sales and profitability than even Japan. Suzuki wants it to evolve as a full-fledged car company with capability to develop cars from scratch in future.” Suzuki has already announced $2 billion investment by 2010 in India for capacity expansion and new product development.

(Source) Economic Times

Tags: capacity expansion, car company, d centre, development source, engineering colleges, facelift, freshers, headcount, indian engineers, maruti, nakanishi, new cars, newer technologies, regional brands, small cars, suzuki cars, talent pool

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If there is one car company that is not showing any effects of recession, Hyundai Motors has to be it. While other companies are closing down, Hyundai is opening new ones. The Korean car company is making the most of a bad situation with some innovative thinking. And they’re moving up the automotive ranks because of it.

Hyundai is viewed by many as a rising star, backed by ever-improving products with solid five-year warranties. They recently leapfrogged into fifth place – behind Toyota, GM, Ford and Volkswagen – on the market. Locally, Vernon Hyundai is lapping up this wave of success through its recently opened Hyundai dealership.

The $6 million, 17,000 square-foot dealership has more options than a luxury sedan – a cutting-edge service department, wash bay exclusive for customer vehicles, drive through reception, customer lounge with Internet access and leather seating.

Hyundai just finished rolling out seven new models over seven consecutive years, and they are set to repeat the cycle, including several new hybrid options. The mid-range Hyundai Genesis just won North American Car of the Year at the Detroit Auto Show, as well as Canadian Car of the Year.

(Source) Vernon Morning

Tags: american car, bad situation, canadian car, car company, car of the year, customer lounge, customer vehicles, detroit auto, edge service, gm ford, hybrid options, hyundai dealership, hyundai motors, innovative thinking, korean car, leather seating, mid range, recession, rising star, seven consecutive years

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Out of a hole and going into a new one. This is the scenario that Chrysler seems to be projecting as it has announced a new advertising campaign that comes in the heels of their strategic global alliance with Italian automaker Fiat SpA. The new ads will begin appearing on primetime television on Monday, May 11.

Under the tagline introduced on May 3, “We’re building a new car company. Come see what we’re building for you,” the campaign talks directly to consumers by highlighting the features of Chrysler LLC’s product line in a fresh, new and memorable way. The messaging focuses on the quality, technology, safety and value built into every Dodge, Chrysler and Jeep vehicle.

“When we asked consumers what they wanted to know about Chrysler, they told us to tell them about our products, tell them why they should buy our vehicles and give them a reason why they should be confident in the future of this company. We believe this campaign delivers on all of those objectives,” said Steven Landry, Executive Vice President – North American Sales, Marketing, and Mopar Parts and Service, Chrysler LLC. “In addition, this campaign gives us the opportunity to reinforce that it’s business as usual and demonstrate a bright future ahead for Chrysler.”

(Source) Press

Tags: advertising campaign, bright future, car company, dodge chrysler, executive vice, Fiat, fiat spa, global alliance, italian automaker, jeep vehicle, mopar parts, new advertising, new car, president north, primetime television, quality technology, sales marketing, steven landry, tagline

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Chrysler may have filed for bankruptcy but that doesn’t mean they are leaving thousands of dealers on the air. Chrysler LLC announced new May incentives that appeal to what consumers want, and reflect in the bottom line price of a new vehicle.

“Chrysler LLC is building a new car company, and we are asking consumers to come see what we are building for you as we begin a vibrant new phase of our company,” said Steven Landry, Executive Vice President North American Sales and Marketing, Global Service and Parts – Chrysler LLC. “Consumers are telling us that the net purchase price of the vehicle is the most important factor right now, so we are pleased to introduce incentives that address what the consumer is looking for.”

Beginning May 6, Chrysler LLC will offer up to $4,000 Consumer Cash on 2009 model vehicles, $1,000 Owner Loyalty for current Chrysler LLC vehicle owners that is good towards most 2008 and 2009 Chrysler, Jeep and Dodge vehicles and up to $1,000 Credit Union Bonus Cash for qualified members who finance their new vehicle purchase through a participating Credit Union. These incentives are valid through June 1, 2009.

More than 1,500 credit union, representing 40 million credit union members in all 50 states, are participating in the “Invest in America” program, which offers low-rate financing on new vehicle purchases for approved members, and the additional bonus cash of up to $1,000 mentioned above is available.

(Source) Press

Tags: Bankruptcy, bonus cash, car company, Chrysler, chrysler jeep, global service, model vehicles, new car

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