GM s Holden to stop making cars in Australia – BBC News #car #shop


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#

GM’s Holden to stop making cars in Australia

11 December 2013

Image caption Holden said a small domestic market was among the reasons behind its decision

Holden, a subsidiary of General Motors (GM), has said it will stop making cars in Australia by the end of 2017.

The move will result in nearly 2,900 people losing their jobs.

The firm said a strong Australian currency, high manufacturing costs and a small domestic market were among the reasons behind its decision.

Holden, which has made cars in Australia for nearly 65 years, will retain its sales unit and a parts distribution centre in Australia.

“The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country,” GM chief executive Dan Akerson said in a statement.

“This includes the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.”

Subsidies

Carmakers in Australia have been struggling for some time, despite the government extending support to the industry via subsidies over the past few years.

Analysis

By Puneet Pal Singh Business Reporter, BBC News

Holden has been an iconic brand in Australia. In fact, it personified the Australian car industry for decades.

Unfortunately, its latest move is also symbolic of the issues faced, not just by it, but the sector overall.

One of the biggest headaches has been the strong Australian currency, which has risen nearly 30% against the US dollar over the past five years.

That has made foreign-made cars cheaper for Australian consumers. According to various estimates, nearly 85% of cars sold in the country are imported.

A relatively small domestic market means that local manufacturers are left competing for an even smaller share, which is proving insufficient to sustain their growth.

The numbers of cars made in Australia has halved over the past 30 years, and with Holden ceasing its production in 2017, some fear the entire sector may crumble.

Holden’s exit will leave Toyota as the sole manufacturer in Australia and until things change drastically, the fear is that the Japanese firm may also go looking for greener pastures.

A weak Japanese yen, which makes exports from Japan cheaper, coupled with a strong Australian dollar may just deliver the knock-out punch for the Australian car industry.

However, there has been a debate over whether the government should continue to provide support to the sector.

According to the Australian Broadcasting Corporation (ABC), Prime Minister Tony Abbott declared last week that there would be no more taxpayer assistance.

The government had also increased pressure on Holden in recent days to clarify its future plans for Australia.

Dave Smith, national secretary of the vehicle division at Australian Manufacturing Workers Union, said the government’s push had influenced Holden’s move.

“I believe the decision’s been prompted by the behaviour of the government yesterday,” he told the ABC.

“Unfortunately, they’ve been let down by a government that wouldn’t back them in.”

Wider implications

In May, US carmaker Ford announced that it would stop production in Australia in 2016.

That means Holden’s decision will leave Japanese carmaker Toyota as the only company still making cars in Australia from 2017.

The Australian Manufacturing Workers Union said it was now “highly likely” Toyota could decide to leave Australia as well.

“In fact, it’s almost certain and this will spell the end of 50,000 automotive jobs,” Mr Smith said. “There’s no dispute about that.”

The Motor Trade Association of South Australia said the government needed to take steps to ensure a sustainable future for the sector.

“Our attention must now go to those component manufacturers and Toyota, and the federal government must immediately begin working on plans to keep this important manufacturing base in Australia,” said John Chapman, chief executive of the association.

Treasurer Joe Hockey said the government would work closely with the state governments and unions to ensure Holden’s departure “does not lead to a significant economic downturn in South Australia or Victoria”, where the firm’s two manufacturing units are based.

“We will do everything to help in this transition,” he added.

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GM s Holden to stop making cars in Australia – BBC News #car #trawler


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#

GM’s Holden to stop making cars in Australia

11 December 2013

Image caption Holden said a small domestic market was among the reasons behind its decision

Holden, a subsidiary of General Motors (GM), has said it will stop making cars in Australia by the end of 2017.

The move will result in nearly 2,900 people losing their jobs.

The firm said a strong Australian currency, high manufacturing costs and a small domestic market were among the reasons behind its decision.

Holden, which has made cars in Australia for nearly 65 years, will retain its sales unit and a parts distribution centre in Australia.

“The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country,” GM chief executive Dan Akerson said in a statement.

“This includes the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.”

Subsidies

Carmakers in Australia have been struggling for some time, despite the government extending support to the industry via subsidies over the past few years.

Analysis

By Puneet Pal Singh Business Reporter, BBC News

Holden has been an iconic brand in Australia. In fact, it personified the Australian car industry for decades.

Unfortunately, its latest move is also symbolic of the issues faced, not just by it, but the sector overall.

One of the biggest headaches has been the strong Australian currency, which has risen nearly 30% against the US dollar over the past five years.

That has made foreign-made cars cheaper for Australian consumers. According to various estimates, nearly 85% of cars sold in the country are imported.

A relatively small domestic market means that local manufacturers are left competing for an even smaller share, which is proving insufficient to sustain their growth.

The numbers of cars made in Australia has halved over the past 30 years, and with Holden ceasing its production in 2017, some fear the entire sector may crumble.

Holden’s exit will leave Toyota as the sole manufacturer in Australia and until things change drastically, the fear is that the Japanese firm may also go looking for greener pastures.

A weak Japanese yen, which makes exports from Japan cheaper, coupled with a strong Australian dollar may just deliver the knock-out punch for the Australian car industry.

However, there has been a debate over whether the government should continue to provide support to the sector.

According to the Australian Broadcasting Corporation (ABC), Prime Minister Tony Abbott declared last week that there would be no more taxpayer assistance.

The government had also increased pressure on Holden in recent days to clarify its future plans for Australia.

Dave Smith, national secretary of the vehicle division at Australian Manufacturing Workers Union, said the government’s push had influenced Holden’s move.

“I believe the decision’s been prompted by the behaviour of the government yesterday,” he told the ABC.

“Unfortunately, they’ve been let down by a government that wouldn’t back them in.”

Wider implications

In May, US carmaker Ford announced that it would stop production in Australia in 2016.

That means Holden’s decision will leave Japanese carmaker Toyota as the only company still making cars in Australia from 2017.

The Australian Manufacturing Workers Union said it was now “highly likely” Toyota could decide to leave Australia as well.

“In fact, it’s almost certain and this will spell the end of 50,000 automotive jobs,” Mr Smith said. “There’s no dispute about that.”

The Motor Trade Association of South Australia said the government needed to take steps to ensure a sustainable future for the sector.

“Our attention must now go to those component manufacturers and Toyota, and the federal government must immediately begin working on plans to keep this important manufacturing base in Australia,” said John Chapman, chief executive of the association.

Treasurer Joe Hockey said the government would work closely with the state governments and unions to ensure Holden’s departure “does not lead to a significant economic downturn in South Australia or Victoria”, where the firm’s two manufacturing units are based.

“We will do everything to help in this transition,” he added.

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GM Launches 0% Financing for 72 Months; Cuts More Production #car #movers


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#

GM Launches 0% Financing for 72 Months; Cuts More Production

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By Michelle Krebs

After showing immense restraint in its use of massive incentives by trying to keep production in line with demand for its vehicles, the Detroit automaker Monday announced a fire sale: zero-percent financing for 72 months on most of its models through the end of June.

This is an absolute screamin deal, said Mark LaNeve, GM vice president in charge of North American sales, in a conference call with the media.

Sales Sag Continues

GM’s LaNeve agreed with recent analysts’ projections that June will be another dismal month for U.S. vehicle sales, in the same vein as April and May. Companies post their monthly and six-month reports on July 1.

“Buyers are paying close attention to their monthly income and being cautious,” said LaNeve. “We’re trying to spark the market at the end of the month and close the quarter strong with this unbelievable offer that we hope builds momentum into the summer [inventory] clean-up.”

He noted the no-interest financing for six years strategy used by GM in July 2006 and September 2004 worked very successfully.

So starting Tuesday, buyers can get zero percent financing for up to 72 months on all but the hot-selling models sold by GM. “It’s a simple, compelling offer — 72 months of interest-free loans,” said LaNeve, which is a good way for buyers who owe more on their current vehicle to get into a new one.

Indeed, Jesse Toprak, executive director of Industry Analysis for Edmunds.com. the parent of AutoObserver. agrees. “Automakers are trying to find ways to jump-start some of the lowest levels of new vehicle sales in several years. Zero percent financing for six years promotions have been quite successful in the past — especially when they were offered for a limited amount of time.”

Toprak predicts other automakers will jump on the bandwagon with similar promotions.

Interest-free financing is available on almost 80 percent of GM’s 2008 model-year inventory, including all trucks and all SUVs but also some cars and crossovers. For instance it is also available on the Chevrolet Equinox, Impala and HHR; the Buick Lucerne and LaCrosse; the Pontiac Torrent, Grand Prix and Solstice; the Cadillac STS and DTS; all Hummers; the Saab 9-3; and the Saturn Sky, Aura and Vue.

Only models in tight supply are not covered by the zero percent financing deal. Excluded are: Cadillac CTS; Chevrolet Malibu, Aveo, Malibu and Corvette; Buick Enclave; GMC Acadia; Saturn Outlook; Pontiac Vibe; and the Chevrolet Tahoe and GMC Yukon 2-Mode Hybrids.

Beating the Price Hikes

The massive incentive program comes on the eve of GM boosting prices on upcoming 2009 models by an average of 3.5 percent, about $1,000 per vehicle. “This is a fairly significant increase compared to previous years,” said LaNeve. “It will be more on some products and less on others.”

LaNeve said almost every model would see some price increase. Price hikes on specific models will be announced as the new ones come into the market, some beginning in mid-July.

He said the increases are an effort to boost falling revenues due to the massive drop in truck and SUV sales, skyrocketing commodity prices like the doubling of steel prices and costs driven higher by the soaring price of oil, from logistics of transporting vehicles and parts to producing the plastics that go into vehicles. LaNeve said the higher vehicle prices also reflect product improvements, added standard equipment and costs associated with meeting stricter government regulations.

Cleaning Up Inventory

But before delivering the price-boosted 2009 models to dealers, GM needs to clean up inventory. LaNeve insists at 750,000 vehicles, GM’s inventory is at a historical low. However, he acknowledged, of those, GM has about 50,000 too many trucks and SUVs and about 50,000 too few cars and crossovers.

To that end, LaNeve said Monday GM will cut another 170,000 units from its production target in the second half of 2008 by extending summer vacation at a number of mostly truck and SUV plants.

Assembly plants affected include those in: Arlington, Texas; Fort Wayne, Indiana; Janesville, Wisconsin; Shreveport, Louisiana; Silao (Mexico); and Oshawa, Ontario (Canada). These will be closed for anything from one to 10 weeks from July through to the end of the year. These shutdowns will be in addition to the usual summer vacation schedule.

While it cuts truck and SUV assembly, GM will boost car and crossover production by 47,000 units through year-end by adding shifts at plants in Fairfax, Kansas and Lansing, Michigan to boost output of these models.

According to Edmunds.com’s analysis, the days-to-turn — the time between a vehicle being delivered at a dealership to it being purchased — is a high 103 days for GM’s large trucks and 71 days for large SUVs.

“GM is banking on this promotion to get rid of high levels of unsold inventory before the 2009 model-year vehicles start arriving at the showrooms,” said Toprak.


GM Launches 0% Financing for 72 Months; Cuts More Production #cheap #cars #for #sale


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#

GM Launches 0% Financing for 72 Months; Cuts More Production

Comments (0)

By Michelle Krebs

After showing immense restraint in its use of massive incentives by trying to keep production in line with demand for its vehicles, the Detroit automaker Monday announced a fire sale: zero-percent financing for 72 months on most of its models through the end of June.

This is an absolute screamin deal, said Mark LaNeve, GM vice president in charge of North American sales, in a conference call with the media.

Sales Sag Continues

GM’s LaNeve agreed with recent analysts’ projections that June will be another dismal month for U.S. vehicle sales, in the same vein as April and May. Companies post their monthly and six-month reports on July 1.

“Buyers are paying close attention to their monthly income and being cautious,” said LaNeve. “We’re trying to spark the market at the end of the month and close the quarter strong with this unbelievable offer that we hope builds momentum into the summer [inventory] clean-up.”

He noted the no-interest financing for six years strategy used by GM in July 2006 and September 2004 worked very successfully.

So starting Tuesday, buyers can get zero percent financing for up to 72 months on all but the hot-selling models sold by GM. “It’s a simple, compelling offer — 72 months of interest-free loans,” said LaNeve, which is a good way for buyers who owe more on their current vehicle to get into a new one.

Indeed, Jesse Toprak, executive director of Industry Analysis for Edmunds.com. the parent of AutoObserver. agrees. “Automakers are trying to find ways to jump-start some of the lowest levels of new vehicle sales in several years. Zero percent financing for six years promotions have been quite successful in the past — especially when they were offered for a limited amount of time.”

Toprak predicts other automakers will jump on the bandwagon with similar promotions.

Interest-free financing is available on almost 80 percent of GM’s 2008 model-year inventory, including all trucks and all SUVs but also some cars and crossovers. For instance it is also available on the Chevrolet Equinox, Impala and HHR; the Buick Lucerne and LaCrosse; the Pontiac Torrent, Grand Prix and Solstice; the Cadillac STS and DTS; all Hummers; the Saab 9-3; and the Saturn Sky, Aura and Vue.

Only models in tight supply are not covered by the zero percent financing deal. Excluded are: Cadillac CTS; Chevrolet Malibu, Aveo, Malibu and Corvette; Buick Enclave; GMC Acadia; Saturn Outlook; Pontiac Vibe; and the Chevrolet Tahoe and GMC Yukon 2-Mode Hybrids.

Beating the Price Hikes

The massive incentive program comes on the eve of GM boosting prices on upcoming 2009 models by an average of 3.5 percent, about $1,000 per vehicle. “This is a fairly significant increase compared to previous years,” said LaNeve. “It will be more on some products and less on others.”

LaNeve said almost every model would see some price increase. Price hikes on specific models will be announced as the new ones come into the market, some beginning in mid-July.

He said the increases are an effort to boost falling revenues due to the massive drop in truck and SUV sales, skyrocketing commodity prices like the doubling of steel prices and costs driven higher by the soaring price of oil, from logistics of transporting vehicles and parts to producing the plastics that go into vehicles. LaNeve said the higher vehicle prices also reflect product improvements, added standard equipment and costs associated with meeting stricter government regulations.

Cleaning Up Inventory

But before delivering the price-boosted 2009 models to dealers, GM needs to clean up inventory. LaNeve insists at 750,000 vehicles, GM’s inventory is at a historical low. However, he acknowledged, of those, GM has about 50,000 too many trucks and SUVs and about 50,000 too few cars and crossovers.

To that end, LaNeve said Monday GM will cut another 170,000 units from its production target in the second half of 2008 by extending summer vacation at a number of mostly truck and SUV plants.

Assembly plants affected include those in: Arlington, Texas; Fort Wayne, Indiana; Janesville, Wisconsin; Shreveport, Louisiana; Silao (Mexico); and Oshawa, Ontario (Canada). These will be closed for anything from one to 10 weeks from July through to the end of the year. These shutdowns will be in addition to the usual summer vacation schedule.

While it cuts truck and SUV assembly, GM will boost car and crossover production by 47,000 units through year-end by adding shifts at plants in Fairfax, Kansas and Lansing, Michigan to boost output of these models.

According to Edmunds.com’s analysis, the days-to-turn — the time between a vehicle being delivered at a dealership to it being purchased — is a high 103 days for GM’s large trucks and 71 days for large SUVs.

“GM is banking on this promotion to get rid of high levels of unsold inventory before the 2009 model-year vehicles start arriving at the showrooms,” said Toprak.


GM s Holden to stop making cars in Australia – BBC News #cheap #used #cars #for #sale #by #owner


#holden cars
#

GM’s Holden to stop making cars in Australia

11 December 2013

Image caption Holden said a small domestic market was among the reasons behind its decision

Holden, a subsidiary of General Motors (GM), has said it will stop making cars in Australia by the end of 2017.

The move will result in nearly 2,900 people losing their jobs.

The firm said a strong Australian currency, high manufacturing costs and a small domestic market were among the reasons behind its decision.

Holden, which has made cars in Australia for nearly 65 years, will retain its sales unit and a parts distribution centre in Australia.

“The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country,” GM chief executive Dan Akerson said in a statement.

“This includes the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world.”

Subsidies

Carmakers in Australia have been struggling for some time, despite the government extending support to the industry via subsidies over the past few years.

Analysis

By Puneet Pal Singh Business Reporter, BBC News

Holden has been an iconic brand in Australia. In fact, it personified the Australian car industry for decades.

Unfortunately, its latest move is also symbolic of the issues faced, not just by it, but the sector overall.

One of the biggest headaches has been the strong Australian currency, which has risen nearly 30% against the US dollar over the past five years.

That has made foreign-made cars cheaper for Australian consumers. According to various estimates, nearly 85% of cars sold in the country are imported.

A relatively small domestic market means that local manufacturers are left competing for an even smaller share, which is proving insufficient to sustain their growth.

The numbers of cars made in Australia has halved over the past 30 years, and with Holden ceasing its production in 2017, some fear the entire sector may crumble.

Holden’s exit will leave Toyota as the sole manufacturer in Australia and until things change drastically, the fear is that the Japanese firm may also go looking for greener pastures.

A weak Japanese yen, which makes exports from Japan cheaper, coupled with a strong Australian dollar may just deliver the knock-out punch for the Australian car industry.

However, there has been a debate over whether the government should continue to provide support to the sector.

According to the Australian Broadcasting Corporation (ABC), Prime Minister Tony Abbott declared last week that there would be no more taxpayer assistance.

The government had also increased pressure on Holden in recent days to clarify its future plans for Australia.

Dave Smith, national secretary of the vehicle division at Australian Manufacturing Workers Union, said the government’s push had influenced Holden’s move.

“I believe the decision’s been prompted by the behaviour of the government yesterday,” he told the ABC.

“Unfortunately, they’ve been let down by a government that wouldn’t back them in.”

Wider implications

In May, US carmaker Ford announced that it would stop production in Australia in 2016.

That means Holden’s decision will leave Japanese carmaker Toyota as the only company still making cars in Australia from 2017.

The Australian Manufacturing Workers Union said it was now “highly likely” Toyota could decide to leave Australia as well.

“In fact, it’s almost certain and this will spell the end of 50,000 automotive jobs,” Mr Smith said. “There’s no dispute about that.”

The Motor Trade Association of South Australia said the government needed to take steps to ensure a sustainable future for the sector.

“Our attention must now go to those component manufacturers and Toyota, and the federal government must immediately begin working on plans to keep this important manufacturing base in Australia,” said John Chapman, chief executive of the association.

Treasurer Joe Hockey said the government would work closely with the state governments and unions to ensure Holden’s departure “does not lead to a significant economic downturn in South Australia or Victoria”, where the firm’s two manufacturing units are based.

“We will do everything to help in this transition,” he added.

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GM, Ford & Chrysler Dealership #vehicles #for #sale


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Medved Autoplex

Medved Chevrolet Buick GMC

1506 S Wilcox St Castle Rock. CO 80104

Sales. 720-259-1637

Welcome to Medved Autoplex

Medved Autoplex is a trusted name in the automotive industry and the premier dealership in the Denver, Colorado area. Serving Mile-High residents for almost 70 years, Medved is the primary source for quality new and used vehicles. With locations in Castle Rock and Wheat Ridge, Medved offers variety by supplying ten different distinguished brands including GMC, Chrysler, Jeep, Cadillac, Kia and more.

The Medved Experience

Our primary goal is to provide an easy, enjoyable, and no-pressure car-buying experience for everyone. We want to create long-term relationships with our customers, which is why we offer friendly customer service and world-class automobiles at affordable prices. Medved Autoplex is proud to showcase multiple brands, from GMC to Ford, to give our customers the luxury of choice. We are truly a one-stop shop for all the top sedans, trucks, crossovers SUVs and minivans on the market, such as the award-winning Jeep Grand Cherokee. legendary Ford F-150, stunning Chevrolet Corvette, advanced Kia Sorento and many more.

Not only is the Medved name established as the foremost authority for new and pre-owned vehicles in Colorado, but we also provide honest, quality service and auto repair. We carry manufacturer-certified parts for all brands, so we can ensure your vehicle meets factory standards. Our highly-trained technicians perform all services from oil changes and tire rotations to engine repairs and brake service in our state-of-the-art facilities. Even beyond routine maintenance, our body shop can handle all cosmetic body work, and fixing minor dings or major dents. Schedule a service appointment at one of our Service Centers in Castle Rock and Wheat Ridge today.

At Medved Autoplex, we provide only the finest vehicles on the market, unmatched customer service, and genuine auto repair. If you have any concerns, do not hesitate to contact us via phone or online through our contact form. Our knowledgeable associates are ready to answer all of your questions. We look forward to giving you the best automotive experience you’ve ever had, so visit us today at one of our locations in Castle Rock and Wheat Ridge, Colorado.


GM Launches 0% Financing for 72 Months; Cuts More Production #used #cars #orlando


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#

GM Launches 0% Financing for 72 Months; Cuts More Production

Comments (0)

By Michelle Krebs

After showing immense restraint in its use of massive incentives by trying to keep production in line with demand for its vehicles, the Detroit automaker Monday announced a fire sale: zero-percent financing for 72 months on most of its models through the end of June.

This is an absolute screamin deal, said Mark LaNeve, GM vice president in charge of North American sales, in a conference call with the media.

Sales Sag Continues

GM’s LaNeve agreed with recent analysts’ projections that June will be another dismal month for U.S. vehicle sales, in the same vein as April and May. Companies post their monthly and six-month reports on July 1.

“Buyers are paying close attention to their monthly income and being cautious,” said LaNeve. “We’re trying to spark the market at the end of the month and close the quarter strong with this unbelievable offer that we hope builds momentum into the summer [inventory] clean-up.”

He noted the no-interest financing for six years strategy used by GM in July 2006 and September 2004 worked very successfully.

So starting Tuesday, buyers can get zero percent financing for up to 72 months on all but the hot-selling models sold by GM. “It’s a simple, compelling offer — 72 months of interest-free loans,” said LaNeve, which is a good way for buyers who owe more on their current vehicle to get into a new one.

Indeed, Jesse Toprak, executive director of Industry Analysis for Edmunds.com. the parent of AutoObserver. agrees. “Automakers are trying to find ways to jump-start some of the lowest levels of new vehicle sales in several years. Zero percent financing for six years promotions have been quite successful in the past — especially when they were offered for a limited amount of time.”

Toprak predicts other automakers will jump on the bandwagon with similar promotions.

Interest-free financing is available on almost 80 percent of GM’s 2008 model-year inventory, including all trucks and all SUVs but also some cars and crossovers. For instance it is also available on the Chevrolet Equinox, Impala and HHR; the Buick Lucerne and LaCrosse; the Pontiac Torrent, Grand Prix and Solstice; the Cadillac STS and DTS; all Hummers; the Saab 9-3; and the Saturn Sky, Aura and Vue.

Only models in tight supply are not covered by the zero percent financing deal. Excluded are: Cadillac CTS; Chevrolet Malibu, Aveo, Malibu and Corvette; Buick Enclave; GMC Acadia; Saturn Outlook; Pontiac Vibe; and the Chevrolet Tahoe and GMC Yukon 2-Mode Hybrids.

Beating the Price Hikes

The massive incentive program comes on the eve of GM boosting prices on upcoming 2009 models by an average of 3.5 percent, about $1,000 per vehicle. “This is a fairly significant increase compared to previous years,” said LaNeve. “It will be more on some products and less on others.”

LaNeve said almost every model would see some price increase. Price hikes on specific models will be announced as the new ones come into the market, some beginning in mid-July.

He said the increases are an effort to boost falling revenues due to the massive drop in truck and SUV sales, skyrocketing commodity prices like the doubling of steel prices and costs driven higher by the soaring price of oil, from logistics of transporting vehicles and parts to producing the plastics that go into vehicles. LaNeve said the higher vehicle prices also reflect product improvements, added standard equipment and costs associated with meeting stricter government regulations.

Cleaning Up Inventory

But before delivering the price-boosted 2009 models to dealers, GM needs to clean up inventory. LaNeve insists at 750,000 vehicles, GM’s inventory is at a historical low. However, he acknowledged, of those, GM has about 50,000 too many trucks and SUVs and about 50,000 too few cars and crossovers.

To that end, LaNeve said Monday GM will cut another 170,000 units from its production target in the second half of 2008 by extending summer vacation at a number of mostly truck and SUV plants.

Assembly plants affected include those in: Arlington, Texas; Fort Wayne, Indiana; Janesville, Wisconsin; Shreveport, Louisiana; Silao (Mexico); and Oshawa, Ontario (Canada). These will be closed for anything from one to 10 weeks from July through to the end of the year. These shutdowns will be in addition to the usual summer vacation schedule.

While it cuts truck and SUV assembly, GM will boost car and crossover production by 47,000 units through year-end by adding shifts at plants in Fairfax, Kansas and Lansing, Michigan to boost output of these models.

According to Edmunds.com’s analysis, the days-to-turn — the time between a vehicle being delivered at a dealership to it being purchased — is a high 103 days for GM’s large trucks and 71 days for large SUVs.

“GM is banking on this promotion to get rid of high levels of unsold inventory before the 2009 model-year vehicles start arriving at the showrooms,” said Toprak.


GM Launches 0% Financing for 72 Months; Cuts More Production #value #of #car


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#

GM Launches 0% Financing for 72 Months; Cuts More Production

Comments (0)

By Michelle Krebs

After showing immense restraint in its use of massive incentives by trying to keep production in line with demand for its vehicles, the Detroit automaker Monday announced a fire sale: zero-percent financing for 72 months on most of its models through the end of June.

This is an absolute screamin deal, said Mark LaNeve, GM vice president in charge of North American sales, in a conference call with the media.

Sales Sag Continues

GM’s LaNeve agreed with recent analysts’ projections that June will be another dismal month for U.S. vehicle sales, in the same vein as April and May. Companies post their monthly and six-month reports on July 1.

“Buyers are paying close attention to their monthly income and being cautious,” said LaNeve. “We’re trying to spark the market at the end of the month and close the quarter strong with this unbelievable offer that we hope builds momentum into the summer [inventory] clean-up.”

He noted the no-interest financing for six years strategy used by GM in July 2006 and September 2004 worked very successfully.

So starting Tuesday, buyers can get zero percent financing for up to 72 months on all but the hot-selling models sold by GM. “It’s a simple, compelling offer — 72 months of interest-free loans,” said LaNeve, which is a good way for buyers who owe more on their current vehicle to get into a new one.

Indeed, Jesse Toprak, executive director of Industry Analysis for Edmunds.com. the parent of AutoObserver. agrees. “Automakers are trying to find ways to jump-start some of the lowest levels of new vehicle sales in several years. Zero percent financing for six years promotions have been quite successful in the past — especially when they were offered for a limited amount of time.”

Toprak predicts other automakers will jump on the bandwagon with similar promotions.

Interest-free financing is available on almost 80 percent of GM’s 2008 model-year inventory, including all trucks and all SUVs but also some cars and crossovers. For instance it is also available on the Chevrolet Equinox, Impala and HHR; the Buick Lucerne and LaCrosse; the Pontiac Torrent, Grand Prix and Solstice; the Cadillac STS and DTS; all Hummers; the Saab 9-3; and the Saturn Sky, Aura and Vue.

Only models in tight supply are not covered by the zero percent financing deal. Excluded are: Cadillac CTS; Chevrolet Malibu, Aveo, Malibu and Corvette; Buick Enclave; GMC Acadia; Saturn Outlook; Pontiac Vibe; and the Chevrolet Tahoe and GMC Yukon 2-Mode Hybrids.

Beating the Price Hikes

The massive incentive program comes on the eve of GM boosting prices on upcoming 2009 models by an average of 3.5 percent, about $1,000 per vehicle. “This is a fairly significant increase compared to previous years,” said LaNeve. “It will be more on some products and less on others.”

LaNeve said almost every model would see some price increase. Price hikes on specific models will be announced as the new ones come into the market, some beginning in mid-July.

He said the increases are an effort to boost falling revenues due to the massive drop in truck and SUV sales, skyrocketing commodity prices like the doubling of steel prices and costs driven higher by the soaring price of oil, from logistics of transporting vehicles and parts to producing the plastics that go into vehicles. LaNeve said the higher vehicle prices also reflect product improvements, added standard equipment and costs associated with meeting stricter government regulations.

Cleaning Up Inventory

But before delivering the price-boosted 2009 models to dealers, GM needs to clean up inventory. LaNeve insists at 750,000 vehicles, GM’s inventory is at a historical low. However, he acknowledged, of those, GM has about 50,000 too many trucks and SUVs and about 50,000 too few cars and crossovers.

To that end, LaNeve said Monday GM will cut another 170,000 units from its production target in the second half of 2008 by extending summer vacation at a number of mostly truck and SUV plants.

Assembly plants affected include those in: Arlington, Texas; Fort Wayne, Indiana; Janesville, Wisconsin; Shreveport, Louisiana; Silao (Mexico); and Oshawa, Ontario (Canada). These will be closed for anything from one to 10 weeks from July through to the end of the year. These shutdowns will be in addition to the usual summer vacation schedule.

While it cuts truck and SUV assembly, GM will boost car and crossover production by 47,000 units through year-end by adding shifts at plants in Fairfax, Kansas and Lansing, Michigan to boost output of these models.

According to Edmunds.com’s analysis, the days-to-turn — the time between a vehicle being delivered at a dealership to it being purchased — is a high 103 days for GM’s large trucks and 71 days for large SUVs.

“GM is banking on this promotion to get rid of high levels of unsold inventory before the 2009 model-year vehicles start arriving at the showrooms,” said Toprak.


GM, Ford & Chrysler Dealership


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Medved Autoplex

Medved Chevrolet Buick GMC

1506 S Wilcox St Castle Rock. CO 80104

Sales. 720-259-1637

Welcome to Medved Autoplex

Medved Autoplex is a trusted name in the automotive industry and the premier dealership in the Denver, Colorado area. Serving Mile-High residents for almost 70 years, Medved is the primary source for quality new and used vehicles. With locations in Castle Rock and Wheat Ridge, Medved offers variety by supplying ten different distinguished brands including GMC, Chrysler, Jeep, Cadillac, Kia and more.

The Medved Experience

Our primary goal is to provide an easy, enjoyable, and no-pressure car-buying experience for everyone. We want to create long-term relationships with our customers, which is why we offer friendly customer service and world-class automobiles at affordable prices. Medved Autoplex is proud to showcase multiple brands, from GMC to Ford, to give our customers the luxury of choice. We are truly a one-stop shop for all the top sedans, trucks, crossovers SUVs and minivans on the market, such as the award-winning Jeep Grand Cherokee. legendary Ford F-150, stunning Chevrolet Corvette, advanced Kia Sorento and many more.

Not only is the Medved name established as the foremost authority for new and pre-owned vehicles in Colorado, but we also provide honest, quality service and auto repair. We carry manufacturer-certified parts for all brands, so we can ensure your vehicle meets factory standards. Our highly-trained technicians perform all services from oil changes and tire rotations to engine repairs and brake service in our state-of-the-art facilities. Even beyond routine maintenance, our body shop can handle all cosmetic body work, and fixing minor dings or major dents. Schedule a service appointment at one of our Service Centers in Castle Rock and Wheat Ridge today.

At Medved Autoplex, we provide only the finest vehicles on the market, unmatched customer service, and genuine auto repair. If you have any concerns, do not hesitate to contact us via phone or online through our contact form. Our knowledgeable associates are ready to answer all of your questions. We look forward to giving you the best automotive experience you’ve ever had, so visit us today at one of our locations in Castle Rock and Wheat Ridge, Colorado.