Natural disasters are a cause for which General Motors provides financial assistance to victims through its GM Foundation for over 30 years. They were involved in the earthquake recovery efforts in New Zealand and Haiti and participated in the support of victims during severe flooding episodes in the States, including Kentucky and Tennessee.

The Chairman of the GM Foundation, John T. Montford releaseda statement regarding GM’s part in relief assistance:

“Humanitarian relief is an important part of the Foundation’s work and we’re answering the call for help in the wake of such terrible devastation. There is remarkable compassion among GM employees, and I know that same spirit will make a difference in helping the Japan relief effort.”

General Motors is the first automaker in the United States to offer contributions to the relief efforts of Japan’s recovery. Together with Toyota, Honda, and Nissan large donations continue to climb in an effort to provide help to the victims. So far Mitsubishi and Subaru, both affected by the earthquake and tsunami have not announced any plans yet officially.

General Motors (NYSE: GM) Announces $750,000 Donation to Tsunami, Earthquake Victims was created by and is property of American Consumer News.

Ford Motor has been integrating the hands free entertainment system into numerous models of their passenger car lines recently. However, most of the other auto manufacturers haven’t been very focused on these new technology improvements in their cars, until now.

With the huge popularity of devices such as iPods, iPads, iPhones, laptops, netbooks, smartphones, and more, people want to stay connected while they are in their cars too. Voice activated music and wireless phone technology is already available in $500 smartphones, so why not in cars, too?

Manufacturers are finally realizing their earnings potential in this market and are trying to start giving their customers what they want in these high-tech additions.

This integration of high tech connected technology might just be one of the key factors to bringing GM back into the automotive limelight once again. GM is trying to outdo Ford at their technology enhancements by planning on offering free Internet access to Facebook from their OnStar system as soon as next year. Facebook in your vehicle, for free! This is something many in the younger generations are already addicted to outside of the car, so if available in their car as well, they will be thrilled, or so GM is hoping.

What GM really needs to offer is full service of their OnStar service with the voice guidance and Internet access for their vehicles. Also, why not also throw in there voice transcription of text messages and maybe even voice to text messaging. Add those extras and watch just how excited people get, and perhaps even have incentive of purchasing from GM for just those reasons alone.

Sure, car customers care about the design of a car, riding factors, safety, cargo space, gas mileage, and the like, but they are also caring about connected technology at an alarming rate. Perhaps faster than auto manufacturers are able to put out there as an added bonus – at a not so noticeable extra charge, either. People want added iPod (or other MP3 player) docks, a built in GPS system, Internet, and every other possible high tech add on they can squeeze out of the dealer for free. Have that included in the price of the vehicle starting out, and watch sales soar!

Source:  http://www.bloggingstocks.com/2010/09/10/gm-and-ford-to-compete-for-the-more-connected-car/

GM competing with Ford (NYSE: F) for a better connected car was created by and is property of American Consumer News.

Improvements

GM went on record saying that its sales in China increased 19% in August from the previous year to include 181, 625 cars. In the first eight months of 2010 the company sold 1.57 million cars in the Chinese markets.

Toyota Motor Corporation in partnership with local venture interests wound up selling 77,200 automobiles in China during the past month. This is a 16% increase from 2009. Overall sales during the January-August period rose by 22% to 503,800 vehicles. Ford’s joint-venture operations Changan Ford Mazda Automobile and Jiangling Motors Corp., added up to 44,047 vehicles – a 24% increase. Between January and August, the companies enjoyed a 42% growth rates, with a total of 368,103 in auto sales.

Questions On Growth

Growth in car sales has started to slow in recent days from its heated pace back in mid-2009. A number of analysts have been expecting a slowdown to continue forward. Yet, according to Chinese state media the overall sales increased by almost 56% in August. These reports include data from Catarc, the Chinese Automotive Technology and Research Center.

There was an element of confuse about the Catarc growth numbers. The question was why they were so much higher than those reported by the three major foreign automakers. No comments were available from Catarc officials. Other car companies will be turning in their sales reports for August as the days go by.

Sales slumps in June prompted many dealers to offer additional discounts and incentive to invigorate sales. Yet, this issue was exacerbated by the generally negative outlook for car sales in China for the remainder of 2010. Toyota spokesman, Hitoshi Yokoyama suggested that this “caused some consumers to delay their purchase and wait for even more discounts.” He went on to explain the relative growth of Toyota’s sales in August. “When they say discounts and other sales incentives started bottoming out in early August, some consumers came back to the marketplace.”

Market Shifts

According to Joe Hinrichs, a senior head of Ford’s Asian-Pacific and African divisions the company foresees a 70% increase in global sales growth during the coming decade from China and surrounding southeast Asia, as well as sections of Africa.

“China and India will be the biggest contributors,” says Hinrichs.

He also said that sales from these regions increased by 32% from the previous years to include 66,000 vehicles. From January to August of this year sales in Asia and Africa totaled 527,000 vehicles, a 42% increase. The company plans to build additional assembly plants and an engine plant as well to facility this growth further.

Ford, (NYSE: F) GM, And Toyota Listed Moderate Gains In Sales In The Chinese Market was created by and is property of American Consumer News.

Berlin rejected GM’s application, which ultimately lead to GM’s withdrawal of their application. Both Spain and Britain had agreed to loan guarantees of about 330 million euros. GM’s decision to go it on their own was announced after Berlin’s rejection.

General Motors simply wants to move forward with it’s changes in Europe, claiming it can’t afford to wait for decisions granting aid any longer. The two brands receiving an overhaul are Opel and Vauxhall, employ 48,000 in Europe – and half of those employees live in Germany.

GM reported an $865 million first-quarter profit in May, which was it’s first positive quarter reporting in three years. Europe is the only place GM lost money, with a $506 million loss across Europe.

The Wall Street Journal reports:

The parent company is capable of sustaining losses in Europe for at least another year or two without imperiling its global turnaround, three people with direct knowledge of the situation told Dow Jones Newswires last week. The company is eager to have a recovery plan locked up before launching an initial public offering for its European operations that could come as soon as this year, the people said.

GM is free to draw on its reserves to fund a restructuring, but it could face criticism since a good chunk of its cash comes from its $50 billion U.S. bailout.

Reilly (Chief executive of GM’s European operations) said the U.S. treasury, as the company’s majority owner, had been informed about the decision to withdraw the aid requests in Europe, and was critical of the European failure to support operations there. He said the question whether to support the European operations with aid from the U.S. or Europe “emphasizes the difference on which side of the Atlantic you sit”.

To further assist GM in restructuring the brands within Europe, employees are contributing savings of more than 1 billion euro between now and 2014. This agreement was not tied to government guarantees.

General Motors Co. Funding a European Overhaul Without European Government Aid was created by and is property of American Consumer News.

G.M received $9 million in federal aid through President Bush in December of 2008. President Obama pushed Rick Wagoner, the chief executive out in March 2009, and gave the company 90 days to restructure itself and become a smaller company that could financially support itself.

General Motors filed bankruptcy on June 1st, and on July 10th, the assets of the company were sold to a government-owned company called Vehicle Acquisition Company– including the Chevrolet, GMC and Cadillac brands of vehicles. The Vehicle Acquisition Company will be renamed General Motors Company, with the federal government maintaining almost 61% ownership and the Canadian government, health care trust for the United Auto Workers union and individual bondholders owning the remainder of the company.

Now, the NY Times reports that even though the company is still losing money, it’s becoming more stabilized after the bankruptcy and has begun to return some fo the $50 billion it’s received through various federal government programs. Analysts of the industry feel it’s too soon to speak whether or not G.M will fully recover just because they’ve stabilized the company.

As reported in NY Times article:

“I’d say their grade is incomplete,” said David E. Cole, director of the Center for Automotive Research. “They have done what they needed to do in the bankruptcy, but what’s critical is getting the fundamentals of the business on the right track.”

Paying back a portion of its government loans is only a first step in the rehabilitation of G.M., which collapsed after years of heavy losses and bad decisions in the marketplace.

G.M.’s management and its new board must show that the company can create value for its biggest shareholder, the United States government, by attracting consumers with cars that they want to buy without resorting to deep discounts.

G.M.’s results showed a healthier balance sheet, ample cash, and factory production much more in line with consumer demand — improvements it owes largely to the bankruptcy process, the helping hand of the federal government and a modest increase in car sales.

The 60-day money-back guarantee has been part of General Motors new aggressive marketing campaign to bring car shoppers back to the show room floor. Even after losing four of it’s brands, G.M is holding onto about a fifth of the overall car market in the United States. In the third-quarter, G.M reported profits in China and South American international markets, but the comeback won’t be declared until G.M turns a profit at home – in North America.

General Motors Positioned to Make a Come back was created by and is property of American Consumer News.

But, as with anything that sounds too good to be true, there are a few caveats of which buyers must be made aware.

• Time Limit – You are only allowed to bring the vehicle back between the 31st and the 60th days after the purchase. You cannot return it during the first 30 days.
• Free from Damage – The vehicle cannot have more than $200.00 of damage to it (excluding things that are covered by warranty). This means that any scratches and/or scrapes will disqualify you for the return.
• Money Back to You- You will only be refunded the price of the vehicle and the sales tax. You cannot be refunded the registration fees. Also, this means no refund on any insurance policy that you purchase.
• Accessories Do Not Count- Avoid adding dealer-purchased accessories as the cost of these will not be included in the refund amount. Make sure to leave these things alone until you are sure that you will keep the vehicle.
• Mileage Limit- The vehicle cannot have any more than 4000 miles on it. While it might be difficult to put that many miles on the vehicle in 60 days, it is not impossible.
• Household Limit- Only one vehicle per household can be returned. If you buy two-fer for a fellow house mate or spouse, only one of the vehicles can be returned.
• Trade-in Stays -You cannot get your trade-in back. The money that was issued as a trade-in goes towards the full refund price of the vehicle. They will not guarantee that your trade-in will still be sitting on the used car lot if you decide to return your new ride.
• Returned Vehicles Go on the Used Car Lot-A $500 Rebate Instead is the better deal in this program. That is the alternative instead of taking the return option. The better choice is to take the time to select your vehicle carefully, research it completely before taking the plunge. Then, take the $500 rebate instead of the return offer.

While this might sway buyers who are on the fence as to whether or not they should purchase a new vehicle, others who are drowning in debt and/or are facing foreclosure will probably not be candidates for this program. It just does not have the same appeal that the ‘cash for clunkers’ program had for consumers.

The Fine Print on the U-Return Plan by GM was created by and is property of American Consumer News.

Limited Time Offer

The GM offer will only be available on 2009 and 2010 model years and will not include medium-duty trucks. Customers will only have until November 30, 2009 to take delivery of the vehicle to be eligible for the return deal. The refund for returns will include the vehicle purchase price and the sales tax but does not include extra accessories a consumer ordered, and fees or negative equity involving a trade-in.  GM also states that there are other requirements but since the program has not fully launched as of yet, those requirements and restrictions will be clearly explained in the next few weeks.

Out From Under Bankruptcy

In July, GM came out of bankruptcy with the help of $50 billion in federal assistance. Sales of GM vehicles have been down 34% throughout the month of August, getting a slight boost during the Cash For Clunkers program. With the economic chaos surrounding the company, GM is hoping its new incentive program will rebuild consumer confidence in the brand and the company. The company states that it is because they believe in the quality of their vehicles, they are willing to make such a guarantee.

The effects on dealers has not yet been reported but it has been said that GM has been restructuring its deal amongst dealers. GM has been gearing up for a heavy ad campaign across the nation and is said to be planning events that will allow drivers to test vehicles on a test track. Expect GM commercials touting the program to appear on television, in print, and around the internet.

GM Takes Bold Step To Reassure Nervous Consumers was created by and is property of American Consumer News.

The experts say that the lack of confidence in the economy and personal finance situations are the root cause for automobile sales being at their lowest in 30 years. Now come some of the car manufacturers to save the day.

In what are being touted as “buyer-assurance” programs, they are targeting those who are feeling skittish about buying a new car. General Motors and Ford Motor Company are offering these plans to help buyers make their payments should they lose their jobs because of layoffs. Hyundai has a similar plan that allows buyers to return cars free for up to one year if they lose their jobs or become disabled and unable to make the payments.

The GM program protects buyers for just the first two years of ownership. They will make the payments of a laid-off worker for up to nine months with a set limit of $500 per payment. Their program is called the “GM Total Confidence” plan.

Ford guarantees to make the payments for the first year on a new vehicle purchase with a limit of $700 per payment per month if a customer loses his/her job. Their plan is called the “Ford Advantage” plan. In addition, Ford offers no interest financing on some of its vehicles as an added incentive. This plan is scheduled to end June 1, but could be extended if demand is high and has the benefit of building consumer confidence.

GM runs its program through April 30 and also guarantees the value of a new GM car or truck when the customer gets ready to trade it for another. It is called the “Vehicle Value Protection” program.

Is this the best time ever to purchase a new vehicle for the consumer? The answer still involves looking at your own personal circumstances and making the decision based on sound financial advice.

If you are one of the fortunate people whose finances are in order, your debt to income ratio is low, and you own your vehicles free and clear or at least you owe much less than what their value is, then you might be a good candidate for one of these programs.

One other piece of advice is to not avoid the used car market. If you can find great programs on new vehicles, think about the prices that might be found on a good used one as well. This is because used car pricing thresholds cannot realistically exceed those of their new counterparts. Used car inventories would soar, and that is not likely to happen, especially since used vehicles have a higher profit margin than do new cars.

If you play your cards right, and go into this carefully, then ‘yes’ you can find a great deal on a new vehicle right now.

Auto Purchasing Programs to Save the Day was created by and is property of American Consumer News.