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General Motors has gone on record to oppose a Washington State bill that would impose a fee of $100 per year on electric-vehicle drivers.

GM Regional Director Howard Lenox, Jr. wrote a letter on March 6 to Washington State Governor Christine Gregoire stating that the automaker, which makes the Chevrolet Volt extended-range plug-in hybrid, is against such a bill. The state is proposing the fee as a way for EV drivers to compensate for the gas taxes that they otherwise wouldn’t be paying. The letter was posted on GM’s The Future Is Electric blog.

“A fee which singles out electric vehicles will be a disincentive to the growth of the electric vehicle market in Washington State,” Lenox wrote in the letter. “As a practical matter, there are so few vehicles on Washington’s roads today that their impact in replacing fuel tax revenues will, for now, be negligible.”

While drivers of the Volt actually wouldn’t be subject to such a fee because its onboard generator is gas-powered, GM appears to be looking ahead as the automaker looks to electrify more of its fleet to meet more stringent greenhouse-gas emissions requirements.

Last month, Washington State passed Senate Bill 5251, which was introduced by Mary Haugen, the Senate’s transportation committee chairwoman. The fee, which is subject to a vote by the state’s House of Representatives, is estimated to add as much as $1.9 million to the state’s coffers by 2017. Arizona, Oregon and Kansas are among other states looking at instituting fees that specifically target electric vehicle drivers.

What do you think, should states enact taxes on EVs to recover lost gas tax revenue? Vote in our poll below, then have your say in Comments.

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GM says Washington State’s proposed electric car fee has “no merit” [w/poll]

Why Automakers Are Increasingly Entering Alliances

It’s only a question of how deeply the knife will slice as Mazda’s desperate cost-cutting measures take aim at its U.S. workforce this week.

The maker has signaled it will post a $1.2 billion loss when the Japanese fiscal year wraps up on March 31, its worst performance in 11 years, and only by offering more than a billion dollars in new stock is it likely to head off a more serious crisis. For now, anyway.

With long-time partner Ford Motor Company slashing its stake in its Japanese affiliate from 33 to just four percent since Alan Mulally was named CEO, even Mazda’s top executive Takashi Yamanouchi admits it will be difficult to go it alone, Yamanouchi recently acknowledging his company is “actively” looking for new alliance partners.

Of course, Mazda is not alone. General Motors confirmed this month that it would enter into a far-reaching partnership with Paris-based PSA Peugeot Citroen. And Germany’s Daimler AG has repeatedly expanded the coalition it formed two years ago with the Renault-Nissan Alliance.

Paul A. Eisenstein is Publisher of TheDetroitBureau.com and a 30-year veteran of the automotive beat. His editorials bring his unique perspective and deep understanding of the auto world to Autoblog readers on a regular basis.

Continue reading “It’s partner or die” in today’s automotive world

“It’s partner or die” in today’s automotive world

When it comes to handing out awards, nobody works harder than J.D. Power. With surveys concocted to measure dependability, brand reputation, customer retention, quality, and whatever else the company can dream up, we sometimes wonder whether the company’s plaudits aren’t becoming a little like “participant” medals awarded at the end of kids’ sports seasons.

This latest J.D. Power survey, the 2012 Customer Service Index, measures service satisfaction at dealerships. The most interesting find is that overall satisfaction at dealers is nearly four percent greater than at independent repair facilities. Visits to dealers among owners of vehicles less than three years old are up as well.

Of course, the numbers that people will be most interested in relate to how each brand fared in the survey. J.D. Power ranks each marque on a 1,000-point scale, “based on dealer service performance during the first three years of new-vehicle ownership, which typically represents the majority of the vehicle warranty period. Five measures are examined to determine overall customer satisfaction with dealer service (listed in order of importance): service quality; service initiation; service advisor; service facility; and vehicle pick-up.”

The brands are broken into either luxury or mainstream categories, and the top performers in each list are clustered fairly close together. Lexus scored 861 points, followed by Cadillac (852) and Jaguar (849) on the luxury side. The mass market competitors finished even closer, with Mini leading at 809 points, followed closely by three General Motors brands: Buick (805), GMC (803) and Chevrolet (801).

See below for the full press release.

Continue reading Lexus, Mini take home dealer satisfaction laurels in latest J.D. Power survey

Lexus, Mini take home dealer satisfaction laurels in latest J.D. Power survey

Even as Republican presidential candidates soldier on in their opposition to the auto industry bailout, new polling indicates that the American public has changed its attitude about the $80 billion spent to help both Chrysler and General Motors restructure. According to The New York Times, a poll conducted in February shows the gap between those who approve of the measures and those who remain opposed has shrunk, while a different, more recent poll shows a slim majority of Americans now support the bailout. In the midst of the 2008-2009 crisis, polls suggested that three out of four people were against government intervention.

The New York Times suggests the post-bailout success of the automakers is the most likely driver of the change in attitude, citing the return to profitability of both Chrysler and GM. That success has resulted in real job creation, with some 126,500 positions in the motor vehicle manufacturing industry added, according to the report. GM has promised to spend $2 billion on factory investments this year and next, including $385 million at its Romulus, MI, engine plant pictured above.

That the actual cost of the bailout has been revised downward by more than 80 percent, to $14 billion, has likely played a part in public perception as well.

New polls indicate Americans warming to auto bailouts

Looks like Volkswagen and General Motors can breathe a corporate sigh of relief. The National Highway Traffic Safety Administration has closed investigations into both companies without issuing fines or ordering a recall.

The government safety agency said it had reviewed 43 reports of engine fires in 2001-2007 VW Passat models. The turbocharged four cylinder’s ignition coils apparently were the source of the blazes. We reported on the initial investigation here.

After a 19-month study, NHTSA said, “The fires observed were contained in the engine compartment and did not reach into the passenger compartment. There were no reports of crashes or personal injury in this examination. A safety-related defect has not been identified at this time.”

“Safety-related defect” or not, that hardly sounds comforting for Passat owners. Might want to get that ignition coil checked out.

GM got the all clear after the NHTSA checked into cracked cooling fans on the GMT-560 series of trucks, which includes Chevrolet, GMC and Isuzu 4500 and 5000 models. NHTSA said it “remains concerned about the potential for injury,” but basically couldn’t find the “root cause” and that the number of complaints seems to be “small and diminishing.”

Hmmm. Might want to get those fans checked, too.

Check out the full PR text below to read the NHTSA report on the Passat.

Continue reading NHTSA closes probes into VW Passat fires, GM medium-duty trucks

NHTSA closes probes into VW Passat fires, GM medium-duty trucks

General Motors is recalling 2012 model year Buick Regal sedans for, according to the National Highway Traffic Safety Administration, “failing to comply with the requirements of federal motor vehicle safety standard number 108: lamps, reflective devices and associated equipment.” Specifically (and in layman’s terms), it means that the Regal’s parking lamps may be defective.

Vehicles affected by this recall were built between February 22, 2011 and February 22, 2012 – a grand total of 3,633 Regals.

GM will begin notifying owners about the recall this week, and dealers will reprogram the Regal’s body control module (that controls the parking lights) free of charge. Follow the jump for the full details in NHTSA’s official statement.

Continue reading Buick recalls 2012 Regal over lighting concern

Buick recalls 2012 Regal over lighting concern

Robots have been a part of every automaker’s manufacturing arsenal for three decades now, but that doesn’t make this latest effort at improving plant automation any less cool. While most factory robots are neither humanoid nor particularly interesting, the only thing more exciting than this pseudo-cyborg hand for rivetheads is ordering up the entire run of The Six Million Dollar Man from Netflix.

While General Motors clearly doesn’t have the cash or inclination to turn each of its roughly 50,000 United Auto Workers employees into Colonel Steve Austin, the new Robo-Glove would allow its wearer to have super hand strength. GM says the force required to grasp tools could be reduced by a third to a half for those wearing the special gloves, which are operated by a standard lithium-ion battery like the ones used to power cordless hand tools. The gloves would allow workers to hold their tools comfortably for longer periods of time and possibly reduce the risk of repetitive stress injury.

The gloves were an outgrowth of GM’s partnership with NASA in developing the Robonaut 2, the first humanoid robot to be launched into space when it went up to the International Space Station last year. GM developed the first prototype gloves in March 2011, while the second generation was completed three months later. They weigh about a pound each and contain all the electronics, actuators and a small display.

Click past the jump to read the full press release, plus watch a video demonstration.

Continue reading GM shows off robotic glove for use in vehicle assembly [w/video]

GM shows off robotic glove for use in vehicle assembly [w/video]

Anyone recently shopping for a four-cylinder Chevrolet Equinox or GMC Terrain has probably discovered they’re not easy to come across. Automotive News reports that General Motors has a shortage of the 2.4-liter powerplants and the company can’t say when that might improve.

Still want an Equinox or Terrain? If you’re willing to give up a few miles per gallon, Chevrolet dealers are offering $1,000 off V6 models to get them out the door. On the Equinox LT, the V6 is a $1,500 option. Not a bad discount if you were already shopping for one of the more powerful CUVs.

Just keep in mind that the EPA says that four-cylinder models get 22 miles per gallon city and 32 mpg highway while the six-cylinder musters just 17/24. The EPA further notes that translates into about a $600 increase in your estimated yearly fuel bill. And in terms of performance, in our testing, we actually preferred the four-cylinder over the V6.

If you have your heart set on a four-cylinder Equinox or Terrain, a GM spokesperson says the automaker is working with suppliers to increase production of the smaller engine and they hope to meet demand soon.

GM offers $1,000 off V6 Equinox and Terrain CUVs because it can’t keep up with 4-cyl demand

There isn’t a whole lot to get excited about in the world of near-luxury, full-size, front-wheel-drive sedans. Stalwarts like the Ford Taurus and Toyota Avalon continue to make their way into the driveways of gray-haired shoppers, and new entries like the redesigned Hyundai Azera are attempting to add a little bit of spice to an otherwise bland segment. In recent years, the Chevrolet Impala has nearly fallen off the map in this class simply because it hasn’t been seriously updated since its launch in 2005 as a 2006 model. (The big four-door did get a new engine for 2012, finally.) But that’s all about to change.

The 2014 Impala will be based on the same front-wheel-drive Epsilon-II architecture that underpins the 2013 Chevrolet Malibu and Cadillac XTS. But instead of sharing many of its components with the ‘Bu, reports indicate that the Impala will use a lot of the features of the XTS in an effort to give it a much more premium feel than the current model. And while the majority of the new car’s styling details are still covered up by the heavy camouflage, we can see premium features like large alloy wheels and what appear to be LED running lights up front. We just hope General Motors hasn’t just taken the easy way out and created a Malibu on steroids.

Mum’s the word on powertrain offerings, but earlier reports have suggested that GM’s direct-injected 3.6-liter V6 will be on board, as well as the new 2.0-liter turbo four that’s slated for use in the Cadillac ATS. An eAssist version is also rumored to be in the cards.

Look for the 2014 Impala to launch sometime during the 2013 calendar year. Production is slated to be split between GM’s Oshawa, Ontario plant, as well as the Detroit-Hamtramck facility where the Malibu and Volt are built.

2014 Chevrolet Impala takes shape

We weren’t exactly smitten with the 2013 Chevrolet Malibu Eco when we got the chance to tae one out for a spin, thanks in part to the eAssist wizardry aimed at improving the vehicle’s fuel economy. With a lackluster drivetrain, regenerative brakes and low rolling resistance tries, the Malibu Eco simply isn’t capable of keeping its head high among the competition. Even so, we were told to wait for the Ecotec 2.0-liter turbocharged four-cylinder set to debut this year. Now we know why. According to General Motors, the engine is good for 269 horsepower and 260 pound-feet of torque. More importantly, all that torque comes on at a very low 1,700 rpm.

The direct-injection engine helps the Malibu hit 60 mph in a scant 6.3 seconds. Trust us when we say that’s an improvement over the Eco model. While there’s no word on fuel economy, we would expect the engine to return well better than the 17 mpg city and 26 mpg highway supplied by the outgoing 3.6-liter V6, an engine that was only good for 252 horsepower.

This isn’t the first time GM has dabbled with a turbocharged four-cylinder. The company supplied buyers with a 2.0-liter Ecotec in vehicles like the Pontiac Solstice GXP, HHR SS and Cobalt SS that put out 260 horsepower. See below for the full press release.

Continue reading 2013 Chevy Malibu’s turbo four rated at 269 HP, 0-60 in 6.3 seconds

2013 Chevy Malibu’s turbo four rated at 269 HP, 0-60 in 6.3 seconds

General Motors wants to become the second-largest shareholder in PSA Peugeot Citroen, and the gears of a deal for seven percent of the French automaker are beginning to mesh. It cost General Motors $423 million to buy into PSA, and the companies will remain competitors despite lashing their rafts together.

Both automakers would like to net cost savings over the course of the initial 10-year term of the partnership by leveraging their collective purchasing power for better prices from suppliers and also sharing economies of scale. GM and PSA are also looking to create vehicles, powertrains and/or components together within the next four years. The two companies have already started work on developing a low-cost small car to sell in emerging markets, and GM is looking to hook up with Peugeot’s Gefco logistics arm, as well.

Peugeot stock has been forced down in value by the company issuing new shares for General Motors to buy, facilitating the deal. Peugeot has also suspended paying a dividend this year to keep cash on hand, further upsetting shareholders and the market in general. Market watchers suspect that any cost savings may be slow in coming, and there’s little detail of how GM and PSA intend to address both companies’ overcapacity problem in Europe or how they intend to find compromises with the typically strong labor unions there, as well.

Still, the hopeful need only look to Renault-Nissan for an example of the potential upside. Of course, GM’s deal with Fiat, which started in 2000 and ended with a $2 Billion payment in 2005, is a reminder of just one of the ways the bloom could fall off this rose.

GM stake in Peugeot will cost $423 million

GM Inside News has obtained a letter from Russel Clark, Director of Marketing for Chevrolet small cars, small utilities and performance cars, to dealers informing them that shipments of all 2012 Chevrolet Camaro ZL1 produced to date are being held by General Motors for a “quality assessment.”

There is no explanation as to what’s causing the hold or its duration, though the letter does say it “may last a few more weeks.” Motor Authority has Chevrolet spokesman Monte Doran on record saying, “We may have found a potential issue that we want to resolve.” If you think you know what the issue is, let us know in the comments or send us a tip.

Being one of the Bowtie brand’s halo cars, the Camaro ZL1 can hardly afford a hiccup in its roll out. Though with a 580-horsepower 6.2-liter V8 underhood and sub-$55k starting price, we’re certain that a few weeks wait won’t change the number of people in line to buy one.

See below to read the letter to dealers in its entirety.

Continue reading Chevy stops halts shipments of Camaro ZL1 over potential quality issue

Chevy stops halts shipments of Camaro ZL1 over potential quality issue

The Chevrolet Volt may not be selling well, but it’s one of the most lauded cars in history. Today the plug-in hybrid was named the 2012 European Car of the Year, an award it will share with its European fraternal twin, the Opel Ampera.

The Volt won North American Car of the Year in 2011, while also picking up car of the year accolades from Motor Trend, Automobile, and nabbing Green Car of the Year from Green Car Journal. Britain’s What Car? awarded the Vauxhall Ampera – as the Opel model is called in the U.K. – its Green Car of the Year award, as well.

But the Volt has been at the center of one controversy after another, since even before it was launched. A National Highway Traffic Safety Administration investigation into a battery fire showed the car was not defective, but it led to the Ampera being delayed. Recent negative publicity among right-leaning political pundits has contributed to making the Volt something of an enigma for General Motors, which just announced it was suspending production of the slow-selling car.

While Europe was never envisioned as the prime market for the Volt/Ampera, GM says it already has 7,000 orders for the Ampera and that the company expects to hit its target of 10,000 sales this year. Certainly, winning this award, presented at the Geneva Motor Show for the first time this year, should help.

The Volt/Ampera finished significantly ahead of the Volkswagen Up! and Ford Focus in the European Car of the Year voting, which included a field of 35 vehicles.

To read the full press release, click past the jump.

Continue reading Chevy Volt and Opel Ampera named 2012 European Car of the Year

Chevy Volt and Opel Ampera named 2012 European Car of the Year

Even with the new HOV-eligible 2012 Chevrolet Volt models heading to California and sales up in February, General Motors has reportedly decided to shut down production of the plug-in hybrid for five weeks because of overall sluggish sales. With a 150-day supply of Volts sitting on dealer lots around the country, this shutdown will temporarily lay off 1,300 employees.

What’s perhaps even more interesting is that this production hiatus comes after a lengthy “holiday” retooling break that only ended in early February. The upcoming shutdown is scheduled to last from March 19 to April 23. As a GM spokesman told MLive, “We’re matching our production levels with demand and building to market.”

GM shutting down Chevy Volt production for five weeks

While the headline might seem shocking, given the circumstances of the 2009 global economic meltdown, it only makes sense. Ford’s dealings with two of its biggest competitors were centered around mutual self-preservation in the form of trying to keep a beleaguered supplier base afloat, according to The Detroit News. According to the report, Ford, Toyota and Honda cooperated to buy from common suppliers in a bid to keep those parts-makers from going under, which would have threatened the automakers’ viability. That revelation comes courtesy of a new book, American Icon: Alan Mulally and the Fight to Save Ford Motor Company by Bryce G. Hoffman.

The auto industry is far more complex than many people realize, especially in this modern era, with ever-more demanding regulations and brutal competition from all corners of the globe. Tier One suppliers, as the biggest parts companies are known, have assumed much of the engineering and product testing and development work for new vehicles, even including big chunks of assembly.

When times get tough, as they most certainly did in late 2008, suppliers are often the canary in the coal mine. At least 27 automotive suppliers filed for Chapter 11 in 2009, meaning that Ford had good reason for taking such precautions, referred to as “Project Quark” internally, according to the report.

Interestingly enough, General Motors and Chrysler, the pair that eventually sought bankruptcy, chose not to participate in the alliance, with GM allegedly expressing concerns over the legality of such a maneuver. The book says Ford’s antitrust attorneys were careful to avoid setting foot on the wrong side of such laws, which prohibit collusion on pricing, among other restrictions on cooperative behavior by competitors.

There are quite a few other interesting anecdotes in Hoffman’s book, including a heated argument between Mark Fields, Ford’s President of the Americas (now said to be in line to succeed CEO Alan Mulally), and Don Leclair, the company’s then chief financial officer. According to Automotive News, a passage in the book declares that Leclair suggested that Fields cut the advertising budget for Ford’s Bold Moves campaign in 2006. This led to heated argument, that ended up with Fields making a move toward Leclair while spouting some choice four-letter words. The altercation was broken up by none other than Bill Ford Jr.

Book: Ford secretly partnered with Toyota, Honda during economic crisis

As you might remember, we were left unfulfilled by the 2012 Buick Regal GS. Buick just didn’t go far enough, in our estimation, which is why when we read about the possibility of a tuner version of the GS from SLP Performance Parts on Inside Line, we got on the phone posthaste.

SLP is best known for building the Firehawk and SS versions of fourth-generation F-body Pontiac Firebirds and Chevrolet Camaros for General Motors, and owning the “ZL” trademark that both it and GM have used on the current-gen Camaro. But the company is also the rights holder of fabled Buick monikers “Grand National” and “GNX,” names that it intends to put back into play.

An SLP spokesman confirmed the report that a 300-plus-horsepower Buick GNX based on the GS is in development, saying that it should have a final mock-up based on the above sketch by the middle of this month. But SLP also told us that it has plans to revive the Grand National name, which would presumably fall somewhere between the GS and the GNX on the performance scale.

But before we get too lathered up about this, remember that SLP has dipped its toes in the performance Buick game before, with middling results. The company rolled out a Buick GSX back in the early part of last decade, based on the supercharged, 3800 V6-powered Regal GS. This dealer-installed kit was a good idea applied to the wrong car, as the front-drive, fourth-generation Regal just wasn’t enough of a performance machine out of the box to bother with.

The current GS, on the other hand, offers a much more intriguing proposition for a little bit of aftermarket improvement. As long as SLP does the full-blackout treatment that was a hallmark of the original GNX, we’d be willing to take it for a spin.

SLP says it is developing new GNX and Grand National Buicks

Japan’s Nikkei news service is reporting that Nissan is dusting the cobwebs off its Datsun brand, dropped back in 1986, and preparing it for a return in 2014. Loyalists will be disappointed to learn that the “new” Datsun badge won’t be riveted to the nose of any upcoming Fairlady Z in the near future – it probably isn’t even coming to North America. Instead, the report indicates that Nissan will use Datsun as a backup brand for low-priced vehicles manufactured and sold in emerging Asian markets. According to the Nikkei, Datsun-branded vehicles will be priced about 500,000 yen ($6,200 USD) with annual sales goals of about 300,000 units.

Rumors about Datsun’s return have been circulating for years. But only now, with Nissan CEO Carlos Ghosn pushing to expand the brand into new markets (e.g., Russia, India, Brazil and China), does it really start to make sense as way to protect the upmarket corporate Nissan identity from being associated with low-cost entry-level vehicles.

The return of Datsun is interesting, but a two-tier strategy is hardly new. For example, Volkswagen uses its entry-level SEAT and Skoda brands to capture the low-cost market (though the two have moved upscale), while General Motors (working with SAIC) recently launched Baojun to target first-time buyers in China. According to TheDetroitBureau.com, the Nikkei also notes that Nissan officials have not commented on the report.

Is Nissan reviving its Datsun brand for a low-cost return in 2014?

Chrysler Wins Again, Small Car Battle Brewing and Mustang Beats Camaro

Automakers love Leap Year. And why wouldn’t they? Who doesn’t love an extra day for selling? Actually, it turns out the extra day that Leap Year provides didn’t make that much of a difference, as there were 25 selling days in February of this year versus 24 last year. A variance of one day is not out of the norm for any month. Still, sales were so good last month that you’d think each automaker had an extra week.

Like last month, the best performer was again Chrysler, both the brand and company, which saw sales rise 113.87 and 40.39 percent, respectively. The 300 sedan in particular, which just won our most recent comparison test versus the Hyundai Genesis, saw sales rise 480% to 7,670 units versus the same time last year.

Indeed, nearly every major automaker had positive news to report, except for General Motors and Mitsubishi. While Chevrolet posted a positive 5.78-percent increase in sales and GMC a narrow 0.14-percent rise, GM as a whole was dragged down by Buick and especially Cadillac, which reported drops of -11.29 and -27.04, respectively. In aggregate, GM reported a sales gain of just 1.10 percent, though its daily average sales rate was 2.94 percent below February of last year. In other words, GM sold about 254 vehicles less per day on average in February of this year than last.

If we go one level deeper and look at the sales of some individual models, the most interesting numbers were in the small car segment. Both the Chevrolet Cruze and Toyota Corolla have been leading the segment lately, but February saw the resurgence of both the Ford Focus and Honda Civic. Focus sales were up 115 percent to 23,350 units while Civic sales rose 36 percent to 27,086 units. Both vehicles sold more than the Corolla at 22,148 units and Cruze at 20,427 units. And we’d be remiss if we didn’t mention that the Mustang finally posted a better month of sales than the Camaro: 7,351 to 6,923.

*Brands and companies are displayed in descending order according to their percentage change in volume sales. There were 25 selling days in February 2012 versus 24 selling days in February 2011, so there will be a difference between monthly sales volume and the average daily sales rate (DSR) for each brand/company. Also, brands are combined and reported as companies only if their sales figures are released jointly.

February 2012: Leap Year Edition

The Enclave has been a big breadwinner in the Buick lineup for over five years, with annual sales that have hovered around 50,000 units, and this past year has seen its best numbers yet. Not bad for a crossover that can crest $50,000 with the right options checked, and even better for a vehicle that has seen virtually nothing in the way of engineering or design updates.

That changes for the 2013 model year, as Buick will finally give their range-topper some refreshed duds. The Enclave will be shown for the first time at the New York Auto Show on April 4, and we now have the first official sneak peak of the updated interior. There isn’t much to glean from the photo, except for the expected infotainment update and some cool-looking ambient lighting.

We’ll probably have to wait until New York for more pics of the Enclave, but for now you can click on the image above to see the pic in higher resolution. Hit the jump for a very short General Motors press release.

Continue reading Buick teases 2013 Enclave ahead of debut in New York

Buick teases 2013 Enclave ahead of debut in New York

General Motors has finally made a move to help its ailing European operations by tying its fortunes on the continent with those of PSA Peugeot Citroën. The two automakers have agreed to a new global alliance in which GM will buy a seven-percent stake in PSA, thereby making it the European automaker’s second largest shareholder behind the Peugeot family itself. The shares won’t give GM any governance rights over PSA, and the two companies will remain competitors in Europe.

What the alliance will give each company is the ability to share vehicle platforms, components and modules, as well as stronger purchasing power for sourcing components, raw materials and other goods and services. They’re combined annual purchasing volume together will be approximately $125 billion. The vehicle platforms most likely to be shared will be small and midsize passenger cars, MPVs and crossovers, with the first one arriving by 2016.

GM says that synergies resulting from the alliance will save approximately $2 billion annually within about five years, though critics argue the alliance doesn’t address the main problem plaguing automakers in Europe: overcapacity. While the alliance does give a shot in the arm to both Opel, GM’s European subsidiary, and Peugeot, analysts and investors alike still believe that plant closings and consolidations are the remedy required for Europe’s struggling automakers. Full details in the press blast after the jump.

Continue reading GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance

GM buys 7% stake in PSA Peugeot Citroën, creates global platform-sharing alliance