Still upset at General Motors for killing of the Pontiac and Saturn brands? According to a new report, nearly two-thirds of Pontiac owners and almost three-fourths of Saturn drivers has left General Motors to other automakers as they bought new vehicles in 2010.

GM got rid of Pontiac, Saturn and Hummer as a part of its government scripted bankruptcy restructuring in 2009 and was hoping that buyers of those brands stick within the remaining GM family.

There are about 3 million Pontiacs, Saturns and Hummers on U.S. roads that GM wants to keep and transfer their loyalty to a Chevrolet, Buick, GMC or Cadillac.

While GM says that a Chevy is a top choice for many Pontiac and Saturn owners, most of those customers are moving to rival brands, including Honda, Toyota and Nissan. In 2010, GM retained 36 percent of Pontiac owners who bought new vehicles, and 26 percent of Saturn and 39 percent from Hummer, according to J.D. Power & Associates.

- By: Omar Rana

Source: Detroit News

Now that General Motors has filed for an initial public offering with the U.S. Securities and Exchange Commission, we’ll learn a lot of inside details we didn’t know before. According to its prospectus filed with the Securities and Exchange Commission, GM paid analyst Stephen Girsky more than $1 million to advice the automaker on other alternatives to saving Saturn before shuttering the brand.

GM said that Saturn’s “engagement” began in early 2009 and was completed before Girsky was named to its board in July 2009. While going through its bankruptcy filing case that split GM in to two parts, old and new, new GM was required to pay Girsky a fee of $1 million for advice on Saturn.

If that wasn’t enough, while president of consulting firm SJG, Girsky was paid an advisory fee of $400,000 and around $50,000 in reimbursed expenses from old GM for consulting services in 2009 related to Saturn,.

GM had planned to sell Saturn to Penske Automotive, but the deal fell through after Penske failed to find suppliers for future Saturn products beyond 2011.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

2010 Buick Enclave

General Motors announced today that it is voluntarily conducting a safety recall for 2009-2010 models of the Lambda based crossovers including the Chevrolet Traverse, Buick Enclave, GMC Acadia and the late Saturn Outlook. The recall is being made to inspect second-row safety belts for damage that in rare cases could make an occupant think the belt is properly latched when it isn”t.

“There are 243,403 vehicles involved in the recall, the majority in the United States with several thousand exported vehicles in Canada, Mexico, China and Saudi Arabia and small populations in other countries,” GM said in a statement. “GM discovered damaged second-row safety belt buckles among warranty returns. There are no known cases where second-row safety belts have failed to perform properly in a crash.”

GM said that some vehicles may have a condition where the second-row seat side trim shield restricts the upward rotation of the seat belt buckle when the seat back is returned to seating position after being folded flat.

“Because of the potential for a false-latch condition, we want customers to return their vehicles to have the recall repair performed as soon as possible,” said Jeff Boyer, GM executive director of safety.

GM will start sending out letters to owners later this month allowing them to schedule appointments with their dealership to for a no-charge inspection and repair of the second-row belts.

- By: Omar Rana

2009 GMC Acadia SLT

It isn’t only Toyota that faces recalls in the millions – General Motors has announced a recall consisting of 1.5 million vehicles to address a problem with the heated windshield wiper fluid system that could lead to a fire, its second recall over the same issue in two years.

GM conducted a similar recall two years ago but said it has come across reports of new fires. The company said it had reports of five fires but there were no injuries or crashes reported. The recall consists of 1.4 million vehicles in the United States, 100,000 in Canada, Mexico and other international markets.

This time around, GM said it would completely disable the heated washer fluid system feature and will pay car owners and those leasing the vehicles $100 since the system is being deactivated.

The recalled vehicles cover the following 2006-2009 model year vehicles:

• 2006-2009 Buick Lucerne
• 2006-2009 Cadillac DTS
• 2006-2009 Hummer H2
• 2008-2009 Buick Enclave
• 2008-2009 Cadillac CTS
• 2007-2009 Cadillac Escalade, Escalade ESV and Escalade EXT
• 2007-2009 Chevrolet Avalanche, Silverado, Suburban and Tahoe
• 2007-2009 GMC Acadia, Sierra, Yukon and Yukon XL
• 2007-2009 Saturn Outlook
• 2009 Chevrolet Traverse.

- By: Omar Rana

Source: Yahoo News

Pontiac G8 GXP

General Motors announced today that within the next couple of months, the Detroit automaker will no longer be selling vehicles from the brands it is eliminating. Executives said that there are about 2,000 Hummer, Pontiac and Saturn vehicles left in its inventory.

During the month of April, GM sold 52 Pontiacs, 373 Saturns and 481 Hummers. It expects the remaining inventory to be gone in about 60 days.

GM sold Saab to Spyker so Saab sales are no longer counted in GM’s totals.

Chevrolet’s chief Jim Campbell said that Chevrolet dealers are currently focusing on providing service to Saturn owners, and then will approach them on the sales side.

Buick/GMC Chief Brian Sweeney said about 200,000 Pontiac owners have taken advantage of the company’s free maintenance program offered by GM at its dealerships.

- By: Omar Rana

Source: AutoObserver

During fall of 2009, Renault-Nissan CEO Carlos Ghosn was pondering requests to team up with two separate brands – Daimler’s Smart and General Motors’ Saturn. While, we already know who Ghosn picked to team up with, he says that it was never an “either/or” situation.

He said that working with Smart made sense and “Saturn was rejected because of very bad economics.”

Ghosn said that both plans were in front him at the same time and at the end, he rejected the idea of developing a new product line for Saturn after the brand’s departure from GM.

“There was no interference between the two projects,” he said. “It didn’t make sense for Renault. When you took a look at the bottom line on this project, it was mediocre.”

Daimler and Renault-Nissan announced their partnership earlier this month where they will both work effectively to develop new Smarts, electric-cars and shared powertrains across their lineup. Renault-Nissan Alliance will get a 3.1% stake in Daimler and Daimler will get a 3.1% stake in Renault and a 3.1% stake in Nissan.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

Two dead General Motors brands, Saturn and Hummer, will get their last hurrah on the automaker’s assembly line.

“We are building out a few Saturns to utilize existing material,” GM spokeswoman Kim Carpenter said. She said that GM will assemble Outlooks for a few more weeks.

The automaker made 1,037 Outlook crossovers last month after not making any Saturns in October.

A fleet company has also ordered 849 Hummer H3s and H3Ts, so the Hummer line in Shreveport, La., will restart April 12 to build the vehicles. The automaker has promised to finish the Hummer production run by May 13.

Hummer stopped production in January.

- By: Omar Rana

Source: Automotive News (Subscription Required)

GM Certified Used Vehicles announced today that it will add all Saturn models years 2005-2010 for purchase at any of the 3,400 Buick, Chevrolet and GMC GM Certified Used Vehicles dealers across the nation.

“This move gives peace of mind to consumers who love the Saturn brand,” said Paul Pejza, manager, GM Certified Used Vehicles. “Consumers can now purchase any 2005-2010 model, and know they have a 12-month or 12,000 mile bumper-to-bumper, manufacturer-backed warranty as well as the other benefits of owning a certified used vehicle.”

In addition to GM’s Certified 12-month/12,000-mile (whichever comes first) bumper-to-bumper warranty, the certified used Saturns come with a fully transferable 100,000-mile/five-year Powertrain limited warranty, free vehicle history report, 24-hour roadside assistance, three-day/150-mile customer satisfaction guarantee and 3-month trial of OnStar and XM Satellite Radio.

“We”re happy to continue to provide the best quality products to Saturn owners through the GM Certified program,” said Pejza. “Brand devotees can now purchase a Saturn with the reassurance of a manufacturer-backed warranty.”

- By: Omar Rana

Hoping not to break bonds with some of its least committed customers after deciding to shut down the Saturn brand due to the failure of an attempted sale to Penske, GM is offering Saturn owners $2,000 in incentives towards a new vehicle from one of its four surviving brands.

The deal began on Feb. 2 and will run through March 31 on select 2009/2010 Buick, GMC, Chevrolet and Cadillac models. The $2,000 will be offered on top of any existing incentives.

To qualify, a Saturn owner must have bought or leased their vehicle at least 6 months ago and are not required to trade in their vehicles.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

After just three days with the company, former Saturn executive Jill Lajdziak has been named president of Smart USA, in the wake of former president David Schembri’s relocation to another post with Smart distributor Penske Automotive.

“As we look to enhance the position of the Smart brand, Jill’s background and experience will help us reinvigorate the dealer network and bring a greater awareness to the smart brand,” said Roger Penske, chairman of the Penske Automotive.

Smart, which is made by Daimler AG and was launched in the U.S. in 2008, has seen sales fall 38% through the end of November, and Schembri has been at the helm since they entered the U.S. market.

- By: Stephen Calogera

Source: Automotive News (Subscription Required)

According to General Motors’ sales executive, Susan Docherty, a total of 1,712 Saturn and Pontiac vehicles remain in the company’s inventory. Docherty told reporters and analysts that only 796 Pontiacs and 916 Saturn units remain, as compared to 32,000 Saturns and more than 70,000 Pontiacs the company had in May as it filed for Chapter 11.

While GM waits for a successful bid for Saab, it is continuing to wind down the brand. As of right now, 1,235 Saab vehicles remain in inventory. Hummer, which is being sold to a Chinese company, has 2,176 units.

Together, the four brands represented 9 percent of retail sales in December, compared with 15 percent in May 2009.

- By: Omar Rana

Source: AutoObserver

According to a report by The Wall Street Journal, General Motors is offering huge incentives to dealers to speed up the sales of leftover Saturn and Pontiac vehicles on their lots. The move will essentially help GM report stronger December sales.

In a letter to dealers, GM said that it will give $7,000 for every new Saturn or Pontiac on showroom lots that is moved to rental-vehicle or service-vehicle fleets. That will allow the vehicles to be classified as used since the dealers will be the first owner. In turn that will allow dealers to sell Saturns and Pontiacs at a very steep discount, as much as 46 percent of the MSRP.

The offer is valid until Jan. 4, which is the last day of Dec. sales for cars.

- By: Stephen Calogera

Source: Reuters

According to J.D. Power and Associates 2009 Avoider Study, nearly one in five new car shoppers avoid a brand due to their concerns over the future of the company.

J.D. Power and Associates said that the top five brands being avoided by consumers are domestic brands including Chrysler, Dodge, HUMMER, Pontiac and Saturn. The firm said that at the time of the study, GM had announced that Saturn, Pontiac and Hummer will not be part of the new GM. It said that Ford, Lincoln and Mercury had a much lower level of avoidance.

“For some American manufacturers, quality and reliability performance in the past has led to a poor perception among consumers and, ultimately, to overall avoidance of those brands,” said Kerri Wise, director of automotive research at
J.D. Power and Associates. “These perceptions are slow to change among consumers, so domestic brands must continue to focus on quality improvement and make sure their efforts are communicated to consumers.”

The 2009 Avoider Study is based on responses of 45,000 owners who registered a new car in May or June 2009.

Click through for the press release.

Press Release:

J.D. Power and Associates Reports:
Uncertain Future of Brands Dissuades Some New-Vehicle Buyers from Considering Particular Brands

Lack of Awareness and Styling Are Obstacles to Consideration for Many New-Vehicle Launches

WESTLAKE VILLAGE, Calif.: 15 December 2009 – Nearly one in five new-vehicle buyers who avoid a particular vehicle model cite their concern over the future of the brand as a reason for avoidance, according to the J.D. Power and Associates 2009 Avoider StudySM released today.

The study, now in its seventh year, examines the reasons consumers fail to consider or avoid particular models when shopping for new vehicles. While the top three avoidance reasons in 2009-styling, price and perceived reliability-remain unchanged from 2008, concern over the future of the brand is the fourth-most-frequently mentioned reason for avoiding a particular model. Included in the study for the first time, this reason was mentioned by 18 percent of avoiders.

Among brands that were avoided due to concerns over their future viability, the top five are domestic brands: Chrysler, Dodge, HUMMER, Pontiac and Saturn. At the time of the study, GM had announced that HUMMER, Pontiac and Saturn would not be part of “New GM,” while Chrysler, along with GM, was in bankruptcy proceedings. Ford, Lincoln and Mercury had much lower levels of avoidance because of concerns over the brands’ futures. This could be largely attributable to the fact that Ford did not enter bankruptcy proceedings or receive government assistance during the auto industry bailout.

“New-vehicle buyers want to know that if anything goes wrong with their vehicle in a year or two that the manufacturer will be there to back up their product,” said Kerri Wise, director of automotive research at
J.D. Power and Associates. “While Chrysler and GM struggled to gain the confidence of some consumers, Ford actually made strides in improving perceptions of its products and reducing year-over-year avoidance in the critical areas of quality and reliability.”

Buyers who avoided a particular brand due to concern about the brand’s future are more likely to also avoid the brand because of reliability, rapid depreciation, the manufacturer’s reputation and poor quality, when compared with avoiders who did not express concern with a brand’s future.

The uncertain economic outlook has also negatively impacted avoidance rates for import brands. Although imports have increased 2009 year-to-date market share by 3 percentage points, compared with 2008, a “Buy American” sentiment has grown from 2008 among domestic buyers who avoid imports. In 2009, nearly six in 10 domestic buyers who avoided an import model cite they “didn’t want a foreign/import vehicle” as a reason for avoidance-compared with 46 percent in 2008.

“Several import models are actually produced in the U.S. but are still avoided due to foreign origin,” said Wise. “To combat this growing sentiment against import vehicles, import brands that produce vehicles in the U.S. must continue to promote and emphasize their domestic ties, as well as other product advantages.”

The study, which also examines the performance of 19 all-new models, finds that one of the biggest obstacles to consideration for all-new model launches is a lack of awareness among consumers. While launches such as the Chevrolet Camaro and Dodge Challenger have high levels of awareness, due to both their past generations and consumer buzz over the new releases, some new vehicles do not have high awareness among consumers.

“Creating awareness and an identity in the crowded automotive market takes both time and money,” said Wise. “A new-vehicle buyer who purchases in a segment in which an all-new model competes and doesn’t even know that the new model exists presents an obvious concern for future sales of that model.”

Styling is also a critical element of consideration for all-new model launches. The study finds that the Audi Q5, Dodge Challenger, Kia Soul and Pontiac G3 are “universally desired,” meaning that buyers are driven to purchase them due to styling and avoiders are not turned off by the styling. On the other hand, some models appear to be polarizing when it comes to styling, including models such as the Ford Flex and Nissan Cube. While buyers of these models are influenced to purchase due to styling, this same styling causes many consumers to avoid these models.

“Many manufacturers would like their vehicles to be universally appealing, but “˜love it or hate it’ models have the potential to create just as much buzz and move as quickly off the lot,” said Wise. “It is important for launch models to hit the mark when it comes to styling, as a hot model launch may be a game changer for a brand overall.”

The 2009 Avoider Study is based on responses from nearly 45,000 owners who registered a new vehicle in May or June 2009. The study was fielded August through October 2009.

- By: Stephen Calogera

It’s no surprise by now that General Motors executives always seem to surprise us with their departure from Detroit. Former Saturn general manager Jill Lajdziak has been hired by Penske Automotive Group to become the company’s smart USA Distributor LLC unit as vice president, sales and marketing.

Lajdziak’s appointment comes as Smart’s sales continue to drop off after its second year in the market. Smart currently sells the Smart ForTwo on the U.S., which is sold exclusively by Penske at 79 smart “retail centers.”

In September, Penske terminated its discussions with GM to buy Saturn, which was led by Lajdziak.

According to Edmunds.com Smart sales totaled 22,880 in 2008. Throughout 2009, Smart has moved just 13,731 units of the ForTwo.

- By: Omar Rana

Source: AutoObserver

General Motors’ efforts to sell Saturn to Penske Automotive Group fell through last month. The automaker is no longer producing Saturn vehicles as it proceeds to shutdown the brand completely. According to Automotive News, in an effort to clear out the remaining Saturn inventory, GM today launched an incentive program that runs through the end of the month.

Those looking to buy a new Saturn can either get $4,000 off any 2008 or 2009 model or 0 percent financing for 72 months. GM is also sending current Saturn owners an additional $1,000 cash regardless of whether they trade in their Saturn or not.

“They have to have owned or leased their Saturn vehicle for a minimum of six months to qualify,” said GM spokesman John McDonald. ”They get $1,000 cash, and that can be combined with other incentives.”

GM said today that Saturn had 9,400 vehicles in its inventory in the United States at the end of October.

- By: Omar Rana

Jill Lajdziak, who joined General Motors’ Saturn brand before its first car was ever sold, will retire from the company by the end of 2009. Lajdziak, 52, led the Saturn brand through its demise last month.

She will take vacation time until her retirement said spokesman John McDonald. In the mean time, GM’s Steve Hill will coordinate the wind-down the brand.

Retailer Penske Automotive Group decided to withdraw its bid to purchase Saturn from General Motors. The Detroit automaker decided to close the brand last month. The brand will shutter when “dealers are able to sell their inventory and wind their dealerships down,” McDonald said.

Lajdziak started at GM in 1980 as a district sales manager with Chevrolet.

- By: Omar Rana

Following Penske Automotive’s termination of talks with General Motors to acquire Saturn, the Detroit automaker has halted production of the brand’s cars and crossovers and plans to sell the thousands of units left in its inventory within the next four months.

GM said that many of the vehicles were built to supply Penske Automotive. GM spokeswoman Sherrie Arb said that GM built the last Saturn within 24 hours of Penske’s statement made last week.

GM said it has about 12,000 Saturn units in its inventory; it’s unclear how man of those are 2009 models.

“We sold about 3,000 Saturns last month, so that’s about a four-month supply if you maintain that selling pace,”said Mark LaNeve, GM’s vice president of U.S. sales. “I don’t think [the canceled sale of the brand] will affect our total 2010 production rate at all.”

- By: Kap Shah

Source: AutoWeek

By now, most of you know that Penske Automotive Group has terminated its discussions with GM to buy Saturn. According to a report by Automotive News, some Saturn dealers say they will look for other franchises now that Penske has canceled plans to acquire Saturn. Others say they will wait and see if Penske revives the deal.

“I guess I’ll be selling the competition,” said George Nahas, who owns Saturn stores in Alabama and Florida. He said that some import brands want him to carry their products.

Following Penske’s statement, GM’s CEO Fritz Henderson said that the company will wind down the Saturn brand and its 350 dealer network through a process to be finalized in the near future.

It was reported earlier today that Penske failed to finalize a deal with Renault and its South Korean unit, Samsung, to supply Saturn dealers with vehicles.

- By: Omar Rana