Tag Archives: GM

Trump Tweets, Ford and GM Counter, their Shares Jump, the Peso Plunges, but the Jobs Won’t “Come Back” to the USA, by Wolf Richter

Trump’s crony socialism by tweet is still crony socialism. From Wolf Richter at wolfstreet.com:

Whacked by slow demand, Ford cancels plant in Mexico, shifts car production to existing plant in Mexico.

President-Elect Trump has been hounding individual businesses with his drive-by tweets, to knock them around some, get their shares to sink, and cut some “deals.” Last year, he singled out Ford, Carrier, Boeing, Lockheed Martin, Amazon, and others. Now companies have set up damage-control teams to prepare for and counter a hit of this type.

Today he singled out GM. It was automaker day. It started with a Trump drive-by tweet about threatening GM with a “big border tax” for importing its Chevy Cruze from Mexico:

General Motors is sending Mexican made model of Chevy Cruze to U.S. car dealers-tax free across border. Make in U.S.A. or pay big border tax!

But he got the facts wrong, and GM’s damage-control team instantly retorted:

General Motors manufactures the Chevrolet Cruze sedan in Lordstown, Ohio. All Chevrolet Cruze sedans sold in the U.S. are built in GM’s assembly plant in Lordstown, Ohio. GM builds the Chevrolet Cruze hatchback for global markets in Mexico, with a small number sold in the U.S.

Reality is this: Demand for GM cars has been swooning, and inventories on dealer lots have been ballooning. For example, at the end of November, dealers sat on 127 days’ supply of Cruze models, more than double a healthy level, after sales had plunged 18%. In November, GM had announced the first wave of layoffs. In December, it followed up by announcing 10,000 layoffs and five plant closings [read… “Car Recession” Bites GM: Inventory Glut, Layoffs, Plant Shutdowns].

To continue reading: Trump Tweets, Ford & GM Counter, their Shares Jump, the Peso Plunges, but the Jobs Won’t “Come Back” to the USA

Another Volt… Called The Bolt, by Eric Peters

Eric Peters is a libertarian and an analyst of the automobile industry, and he does a great job on both fronts. From Peters on a guest post at theburningplatform.com:

Why does GM continue to throw money at electric cars?

Perhaps because it’s not their money.

It’s yours. And mine.

In the form of apparently endless taxpayer-extorted “help” (via federal taxation) to spur the design and manufacture of vehicles that have to be given away at a loss because – channeling Donald Trump – they are losers.

First the Volt – so few of which were offloaded (“sold” would be an affront to honest English) GM had to idle the plant devoted to their assembly. Then GM doubled-down and ginned up the ELR – a Volt dressed in Cadillac duds that was the ultimate dud. So few of them were offloaded (no surprise, given each one cost twice what a Volt listed for) it made the Volt seem like a bases-loaded homer.

Now comes the Bolt.

Another $30,000 (that’s after the $7,500 federal direct-to-the”buyer” bribe) automotive Turducken that’s inferior in every way function can be measured to a 1984 Yugo.

The Yugo had an eight gallon fuel tank and averaged 38 MPG – giving it a range of about 304 miles. Its cost when new was about $3,600 in 1984 dollars – the equivalent of about $8,200 today.

The government didn’t have to bribe anyone to buy a Yugo. Punchlines aside, people freely exchanged their money (not other people’s money) for them.

It could be refueled in less than five minutes. Using the heater or the headlights did not gimp the range.

It weighed 1,543 pounds.

Now (30 years later) behold the Bolt.

Its battery pack weighs 960 pounds – more than half what the entire Yugo weighed (with a full tank of gas). GM spokesmen beam that you can put 50 miles of range into those batteries after only 30 minutes of waiting.

A full charge is possible after a mere nine hours.

The car itself, a subcompact, weighs 3,580 pounds – twice (and then some) what a Yugo weighed and about as much as a current mid-sized IC car such as a Honda Accord or Toyota Camry weighs.

It probably goes faster than a Yugo – which had a top speed of about 84 MPH. But – like all electric cars – not for very long.

The faster you go in an electric car, the less far you’ll go. Range declines as velocity increases. Few car journalists – whether out of ignorance, laziness or fear – ever disclose this inconvenient truth.

To continue reading: Another Volt…Called The Bolt