Home     Log in    XML, RSS Subscribe Feed (RSS)     XML, RSS Comments Feed

Posts Tagged ‘GM’

Ford Success Underscores Power of Private Enterprise

March 8th, 2010 by Matthew C. Keegan | 3 Comments | Filed in News

Make no mistake about it: the Ford Motor Company has been showing some very impressive results lately. Last year the automaker posted a $2.7 billion profit, a stunningly large amount considering what a stinker 2009 was saleswise. Ford figured out how to make money by selling far fewer vehicles, effectively casting to the side long held industry thinking that volume is what drives profits.

Outselling GM

Ford boss Alan Mulally stands in front of the all new Ford Taurus.

In February, Ford did the unthinkable: they sold 471 more cars in the US for the month than GM, the first time that happened since 1998 when a crippling strike shut down much of GM’s production. GM has been the annual US sales leader consistently since 1931 and although one month certainly doesn’t make for a year, Ford has served notice that they intend to build on their momentum.

Ford’s success is in stark contrast to the fortunes of its crosstown rivals. Last year, both General Motors and Chrysler were ushered through federal bankruptcy court and given billions of dollars of aid and loans to shore up their enterprises. GM’s bail out was particularly large with American and Canadian taxpayers contributing more than $50 billion to keep the company afloat. Since then GM has been concentrating on shedding brands and trying to salvage their operation.

Chrysler’s situation is much more desperate, an automaker who would have gone out of business had Italy’s Fiat not stepped in. Without investing a penny Fiat gained a 20 percent stake in Chrysler with the promise of additional shares once new Fiat derived models hit the market. Chrysler had no new models for the 2010 model year while GM had a few. Ford, on the other hand, has been overhauling its line ups by updating or releasing new models.

Toyota Woes

Granted, some of Ford’s most recent fortunes likely came as a result of Toyota’s misfortunes. Once considered a rock solid operation Toyota has been dogged by recalls and a rash of bad public relations moves which have caused once loyal customers to look at competing brands. Over the past few years Ford has made it known that its quality is on par with Toyota and Honda, with Consumer Reports supporting that notion.

How did Ford get to where it is today? Credit Alan Mulally the former head of Boeing Corp. with fixing Ford. Mulally shepherded Boeing through tough times enabling the aircraft manufacturer to fight back against Airbus, the European jet consortium. Upon leaving Boeing in 2006, Mulally was named President and CEO of the Ford Motor Company. One of his first moves was to mortgage nearly all of Ford’s assets, a move which netted the cash strapped automaker nearly $24 billion and the time it needed to introduce new products to the market.

Ford Refocused

Over the succeeding years Mulally refocused Ford, selling off three of its premium brands–Aston Martin, Jaguar and Land Rover–while working to revive Lincoln and bolster Ford. Volvo is in the process of being sold while Mercury will likely be fixed in the coming years. The automaker’s “One Ford” approach is its most significant change, as the automaker introduces models which will be sold globally instead of mostly regionally as had been the previous expensive practice.

Ford was turned down for a federal government loan in late 2008, likely the best thing that has happened to the automaker since Mulally took over.

GM Scrutinized

Every GM move is constantly being called into question with the company announcing just last week that it would re-institute the franchises of 661 dealers whose contracts had previously been terminated. Congressional pressure forced GM to reconsider, a distraction Ford doesn’t have, allowing the Blue Oval to make decisions without worrying about what someone in Washington or Ottawa thinks.

Of course, that comes without government intervention, a glaring difference between Ford and GM, pitting a privately run enterprise against a government backed entity.

Adv. — Are you considering buying a car this year? If so, you may do best by finding your own auto loan before you shop for a car. Please visit SayLending.com to explore your auto financing options.

Photo Credit: Ford Motor Company


Tags: , , , , , , , , , ,

Fire Sale Prices For Pontiac, Saturn Models

December 31st, 2009 by Matthew C. Keegan | 4 Comments | Filed in Autos Express

Potential Savings of $7000 Per Vehicle

Save big bucks on an orphaned Saturn Aura.

If you have been holding back on buying a new car in search of a better deal, you are not likely to find one better than what your Saturn and Buick-Pontiac-GMC dealers have to offer. Right now, General Motors is offering dealers $7000 for every Pontiac and Saturn car on their lots, if these cars are moved to service or rental vehicle fleets. Those vehicles would then be made available to consumers, supposedly at a heavy discount.

Gently Used Cars

Technically, if you were to purchase one of these cars, you would be buying a used model. That is because the dealer becomes the owner of the car before you do. Still, most of these vehicles are likely to have new car mileage, which means that there may be just a few miles on the odometer when made available for sale. Importantly, buyers will have the balance of the GM warranty applied to their barely used new cars, another reason why Saturn and Pontiac cars are likely to sell fast over the days ahead.

GM is taking this approach for two reasons: both the Saturn and Pontiac brands are being retired and the company wants to finish December on a high note. The December selling period ends with the close of business on January 4, therefore there is still time for dealers to snap up inventory. At any point, dealers will turn around and sell these cars, perhaps as discounts of up to $7000 per car.

Your Orphaned Car

One important fact consumers should keep in mind when purchasing a Pontiac or Saturn is that you’ll be owning an orphan car. An orphan car is a vehicle whose parent (make) has been discontinued, which means that the resale value of your vehicle may be poor.

Fortunately, other GM divisions can service these cars and the automaker will be providing parts for many years to come. Buy an orphan vehicle especially if you plan to keep it for many years, rendering its resale value of no consequence for you.

General Motors is also closing on a deal to sell its Hummer brand to a Chinese company and it may keep its Saab unit alive long enough for a new buyer to snap up its Swedish brand. In any case, when the smoke clears North American GM buyers will see that only four brands remain: Cadillac, Buick, Chevrolet, and GMC.

Adv. – If you’re planning to buy a new car, then you’ll want to get price quotes or find a dealer to arrange for a test drive. You may also want to arrange for your own auto financing which can save you hundreds of dollars on your next car loan.

Photo Credit: GM Corp.


Tags: , , , , ,

Buying A Car? Save Money With Employee Pricing!

August 20th, 2008 by Matthew C. Keegan | 2 Comments | Filed in Consumer Financing, Consumer Tips

General Motors is offering employee pricing on most models including the popular Chevrolet Malibu. Other automakers are also offering incentives, making now an excellent time to consider buying a new car.

General Motors is currently offering employee pricing on most models including the popular Chevrolet Malibu. Other automakers are also offering incentives, making now an excellent time to consider buying a new car.

My neighbor, Lester, is a good representation of so many of the people living in my area. He retired early, has a generous pension, is collecting social security, and he keeps track of his investments. Lester is also very thrifty, driving a nine-year old Chevy Impala that has less than 75,000 miles on the odometer.

Lester plans on buying one more car in his lifetime, figuring it’ll last him long enough before he and his wife will head off for a retirement home. That car purchase wasn’t going to take place until next year, but with so many new car incentives available this year, he plans on seeking the best discounts as soon as they become available.

It looks as if Lester’s wait is now over.

General Motors, for one, is now offering their biggest discounts of the year, allowing buyers to take advantage of the company’s employee pricing program. When an automaker rolls out this type of plan, they are showing that they mean serious business; car prices are slashed below the sticker price, and are offered at the deepest discounts possible.

Although the GM offer is the only one of its kind in place right now, other automakers are expected to follow suit between now and the end of the year. Sales for most car companies are way off and bloated inventories must be cleared. One way to do that is to offer slash prices to the bone. However, even with employee pricing, additional savings can be realized IF you think smart.

Employee Pricing? You Can Realize Additional Savings!

If you are planning to take advantage of GM’s employee pricing or some other automaker’s program, you’ll want to know that additional savings are also available. These include:

College Grad or Military Discounts — Recent college grads and active military members are often offered an additional discount by automakers. Ranging in price from $300 to $500, they are the kinds of deals that consumers often overlook and dealers don’t always mention. Before heading off to your local showroom, get on that brand’s website to learn about additional incentives.

Cash Discount — If you are in a position to offer an all cash transaction, you might also be able to shave a few hundred extra off of the price of the car. This offer varies from dealer to dealer, but remember this: the automaker often slips the dealer rebate money for selling cars — why not get a portion of that money for yourself as well? Lester plans on doing just that — too bad he isn’t a recent college grad or he’d be after that discount too!

Get More For Your Trade In — Lester is giving his old Impala to his daughter, but you may be looking to trade in your car when you buy your new wheels. Be careful — car dealers will often try to mix both deals together, i.e. the buying of a new car with the trading in of your old one. Better to work out the best price on your new car first and then see what the dealer will pay for your old car. Visit Kelley Blue Book at www.kbb.com to find out what your car is worth. Cars with larger engines as well as trucks and SUVs are depreciating much faster these days; you have high gas prices to blame for that.

I’m not in Lester’s position financially nor am I planning to buy a new car right now. Regardless of what your financial condition is, before you spring for a new car, you’ll want to use an automotive calculator to learn what you can afford and what your monthly payments will be. Visit the Saylending.com to find a lending guide to help you with the car buying process.

(Photo Credit: GM Corp.)


Tags: , , , , , , , , , , ,