• Sign in to follow this  
    Followers 0

    GM Making Major Changes in Russia


    • GM Closes Some Doors In Russia


    General Motors is making some major changes in Russia. The automaker announced today that it will withdraw Opel and mainstream Chevrolet models in December, and focus on the premium segment of the Russian market with Cadillac and iconic Chevrolet models (Camaro, Corvette, and Tahoe).

    “This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate. This decision avoids significant investment into a market that has very challenging long-term prospects,” said GM President Dan Ammann.

    GM will still offer parts and service for those who own an Opel and mainstream Chevrolet vehicles.

    Along with the departure of Opel and certain Chevrolet models, GM will idle its plant in St. Petersburg by the middle of this year.

    Source: General Motors

    Press Release is on Page 2


    GM to Change Business Model in Russia

    • Focus on Cadillac and iconic Chevrolet vehicles
    • Wind down Opel brand and sale of mainstream Chevrolet cars
    • Idle GM Auto manufacturing facility in St. Petersburg
    • Part of GM’s strategy to ensure long-term sustainability in global markets

    DETROIT – General Motors today announced plans to change its business model in Russia. GM will focus on the premium segment of the Russian market with Cadillac and U.S.-built iconic Chevrolet products such as the Corvette, Camaro and Tahoe. The Chevrolet brand will minimize its presence in Russia and the Opel brand will leave the market by December 2015.

    “This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate,” said GM President Dan Ammann. “This decision avoids significant investment into a market that has very challenging long-term prospects.”

    Opel Group CEO Karl-Thomas Neumann said, “We do not have the appropriate localization level for important vehicles built in Russia and the market environment does not justify a major investment to further localize.”

    The GM Auto plant in St. Petersburg will halt production by the middle of 2015. GM is planning to idle the plant. Furthermore, the contract assembly of Chevrolet vehicles at GAZ will be discontinued in 2015.

    The GM-AVTOVAZ joint venture will continue to build and market the current generation Chevrolet NIVA. GM’s global luxury brand Cadillac will be set up for growth in Russia over the next several years as it prepares for numerous product introductions.

    Chevrolet and Opel will work closely with their dealer networks in Russia to define future steps while ensuring the company will honor its obligations to existing customers in the coming years. “We can assure our customers that we will continue to provide warranty, parts and services for their Chevrolet and Opel vehicles. We want to thank our customers and dealers for their loyalty to the Chevrolet and Opel brands,” said Neumann.

    “We had to take decisive action in Russia to protect our business. We confirm our outlook to return the European business to profitability in 2016 and stick to our long-term goals as defined in our DRIVE!2022 strategy,” said Neumann. By 2022, the company plans to raise its market share in total Europe to 8 percent and to reach a profit margin of 5 percent.

    As a result of the decision to change the business model in Russia, GM expects to record net special charges of up to approximately $600 million primarily in the first quarter of 2015. The special charges include sales incentives, dealer restructuring, contract cancellations and severance-related costs. Approximately $200 million of the net special charges will be non-cash expenses.

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    I would say Putin is getting his wish to go full Communism again as their supreme dictator. No reason to build auto's there when you cannot get the profits out or have to pay crazy pay off amounts. Too corrupt for bottom cars so might as well sell the high end models with decent profits.

    0

    Share this comment


    Link to comment
    Share on other sites

    Is it my eyes or is that cobalt much smaller than the US Cobalt? Talk about disappointing looking car. Looks like a subcompact rather than a compact.

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

      Only 75 emoticons maximum are allowed.

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. 94commo
      94commo
      (50 years old)
    2. Aerodynamic
      Aerodynamic
      (30 years old)
    3. LPE427Fbird
      LPE427Fbird
      (42 years old)
  • Similar Content

    • By William Maley
      The rivalry of the Chevrolet Camaro and Ford Mustang has been going for ages in the U.S. But now this fight has expanded into China.
      Automotive News reports that a growing group of Chinese buyers are being drawn towards to these models as the exude the no-apologies Americana attitude.
      "We're seeing the beginning of a muscle car culture here. Something that is uniquely American appeals to the Chinese consumer. The image that it relays to the automotive public is very positive," said James Chao, a China market auto analyst with IHS Markit.
      Sales of both models are small with Chevrolet only moving 2,000 Camaros since its launch 2011. Ford is doing slightly better with 6,200 Mustangs sold since its launch in 2015. In the first quarter, Mustang sales saw a 90 percent increase to 963 vehicles. Part of the reason for the slow sales comes down to the price. The Camaro starts about 399,900 yuan (about $58,000) - more than double of the base price of $26,900 in the U.S. The Mustang isn't that far behind, costing about $15 dollars less. Prices are increased due to a 25 percent import tariff on U.S. made vehicles, homologation and shipping fees, and Chinese buyers trending to splurge on higher-time models.
      But despite the low sales, the Camaro and Mustang are bringing buyers to dealers. These models act as eye candy to help draw shoppers into showrooms with the hope they'll purchase a vehicle, where it be the eye candy or something a little less exciting.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      The rivalry of the Chevrolet Camaro and Ford Mustang has been going for ages in the U.S. But now this fight has expanded into China.
      Automotive News reports that a growing group of Chinese buyers are being drawn towards to these models as the exude the no-apologies Americana attitude.
      "We're seeing the beginning of a muscle car culture here. Something that is uniquely American appeals to the Chinese consumer. The image that it relays to the automotive public is very positive," said James Chao, a China market auto analyst with IHS Markit.
      Sales of both models are small with Chevrolet only moving 2,000 Camaros since its launch 2011. Ford is doing slightly better with 6,200 Mustangs sold since its launch in 2015. In the first quarter, Mustang sales saw a 90 percent increase to 963 vehicles. Part of the reason for the slow sales comes down to the price. The Camaro starts about 399,900 yuan (about $58,000) - more than double of the base price of $26,900 in the U.S. The Mustang isn't that far behind, costing about $15 dollars less. Prices are increased due to a 25 percent import tariff on U.S. made vehicles, homologation and shipping fees, and Chinese buyers trending to splurge on higher-time models.
      But despite the low sales, the Camaro and Mustang are bringing buyers to dealers. These models act as eye candy to help draw shoppers into showrooms with the hope they'll purchase a vehicle, where it be the eye candy or something a little less exciting.
      Source: Automotive News (Subscription Required)
    • By dfelt
      G. David Felt
      Staff Writer Alternative Energy - www.CheersandGears.com
       
      200 MPH plus EV, Do we care?
       
      Yesterday April 13th 2017, Lucid sent out an email about how their near production test car hit a top speed of 217 mph at the Ohio's Transportation Center banked oval test track. Many of us that follow the industry know that Tesla limits their auto's to 155 mph.  Lucid is on record that they intend to meet the needs of the high-speed cruising market of Europe and Middle east. Simulations can only go so far on a computer and then you have to put rubber to the road. This allows the engineers to monitor and tweak everything from the power train, suspension, body fluidity and so much more. This will allow them to review the data, make adjustments and come back later to push the limit even higher.
      We know that Lucid is planning on a $60,000 dollar 400hp, 240 mile range RWD EV with the top model being a six figure AWD 1,000 HP and 400 miles of range on a super dense battery pack.
      This begs the Question, other than the few places you can push this kind of Speed, Does it matter any more if an auto can go over 100 plus mph?
      This question comes from seeing so many auto's that are now breaking that 6 second 0-60 speed showing they have the torque and hp to maintain the speed needed for daily driving.
      Lucid News 
    • By dfelt
      G. David Felt - Staff Writer Alternative Energy - www.cheersandgears.com
      National BOLT Lease Deal with 15,000 miles.
      According to CarsDirect web site, Chevrolet rolled out starting April 1st a national lease deal on the Chevy BOLT.
      Details of the Lease:
      $329 a month for 36 months with $3,809 due at signing with 15,000 miles of range per year. 
      This is a hell of a deal when you compare the normal lease deals are just 10,000 or for a bit more, 12,000 miles per year.
      Now if your in a CARB state like California or Oregon, you get an additional $2,250 off on the lease. Thus giving you a upfront cost of only $1,559, 15,000 miles and a monthly payment of just $329. Sweet deal for the LT. The premier is just a bit more $347 according to the local web site in Seattle.
       
    • By William Maley
      The long-delayed Cadillac Super Cruise system will be arriving as an option for the 2018 CT6 this fall. Described as "the industry’s first true hands-free driving technology for the highway,"(Tesla would argue otherwise) Super Cruise combines the driver assistance features currently on the CT6, along with a driver attention system and LiDAR-based mapping data.
      Unlike other systems that monitor forces on the steering wheel to see if the driver is paying attention, Super Cruise uses a camera mounted on the steering column to monitor a driver's head position and movement. If it detects the driver has turned their head away from the road, the system will issue an alert to have the driver bring their eyes back to the road via a light bar on the steering wheel and then the safety alert system. If the driver fails to do this, Super Cruise will bring the car to a stop and call OnStar “if necessary.”
      As for the "LiDAR-based mapping data", this scan of limited-access highways in the U.S. and Canada is paired with an improved GPS system, real-time cameras, and sensors to determine whether or not the system can come on, along with keeping the vehicle on the road.
      “American drivers travel twice as many miles on urban and suburban highways as they do on rural roads. Super Cruise™ allows hands-free driving and operates only within the environment where it has the most benefit. While it is technically possible for the technology to drive hands-free on other kinds of streets and roads, we feel strongly that this targeted approach is the best to build consumer and regulatory confidence and enthusiasm for advanced mobility,” said Barry Walkup, chief engineer for the system.
      Source: Cadillac
      Press Release is on Page 2



      View full article
  • Recent Status Updates

  • Who's Online (See full list)

    There are no registered users currently online