Jump to content
  • Greetings Guest!

    CheersandGears.com was founded in 2001 and is one of the oldest continuously operating automotive forums out there.  Come see why we have users who visit nearly every day for the past 16+ years. Signup is fast and free, or you can opt for a premium subscription to view the site ad-free.

William Maley

GM News: General Motors Details Compensation Plan For Crossover Owners

Recommended Posts

Earlier this week, we reported that General Motors was working on a compensation plan for owners of 2016 Buick Enclave, Chevrolet Traverse, and GMC Acadia crossovers that had inflated fuel economy numbers. Yesterday, the company unveiled the plan.

 

Automotive News and Reuters reports that GM will offer buyers the choice of either debit card (ranging from $450 to $1,500) or a 48 month/60,000 mile extended warranty. Those who are leasing the crossovers in question will only get the debit card. The amount a person will get will vary due to various factors including the difference between the inflated and actual fuel economy figures.

 

“We want all of our customers to have a great ownership experience, so we designed this reimbursement program to provide full and fair compensation in a simple, flexible and timely manner,” said a GM spokesman in a statement.

 

How much will this cost GM? A source tells Reuters that it will be about $100 million.

 

Source: Automotive News (Subscription Required), Reuters


View full article

Share this post


Link to post
Share on other sites

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

Share this post


Link to post
Share on other sites

If you're driving a Lambda and you own it.... take the extended warranty.

 

While I do agree with you, what is the reason people should take the extended warranty if purchased instead of the debit card?

 

I know from elsewhere that leased customers will only receive the debit card.

Share this post


Link to post
Share on other sites

 

If you're driving a Lambda and you own it.... take the extended warranty.

While I do agree with you, what is the reason people should take the extended warranty if purchased instead of the debit card?

I know from elsewhere that leased customers will only receive the debit card.

They have some unresolved engine issues that can be very costly to repair. GM's response has been to shorten the oil change interval, but that doesn't really address the issue... It just pushes it out passed the warranty period.

Share this post


Link to post
Share on other sites

Agree with Drew...would be wise to get the plan if you bought it...

 

Most of these bad boys get leased anyways....not sure if I'd buy one used anyways. The 3.6 is very hard of oil, and most owners barely get the oil changed. That, and they suck gas....there are 2 of these monsters on side side of my family alone! They hold up well for those who care for them though...

Share this post


Link to post
Share on other sites

Agree with Drew...would be wise to get the plan if you bought it...

 

Most of these bad boys get leased anyways....not sure if I'd buy one used anyways. The 3.6 is very hard of oil, and most owners barely get the oil changed. That, and they suck gas....there are 2 of these monsters on side side of my family alone! They hold up well for those who care for them though...

They do hold up well from those owners that actually take care of them.

My partner's wife's 2006 GMC Acadia was bought the first year it came out, its still going on strong and she loves it to death.

 

He...has bought recently a Tesla Model S, she....refuses to part with her GMC Acadia.

Share this post


Link to post
Share on other sites

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

 Even if its a $100M issue... the penalty if they didn't act fast would be much higher. Nonetheless, the Lambdas are MINTS. Being around since 2007 pretty much unchanged, and still selling like hotcakes has its rewards. In truth.. I see zero reason why GM would abandon the platform. They simply should pull a "Toyota Corolla/Camy" and keep it going for another decade with a few updates to the inside. This is one platform where driving dynamics mean zero 

Share this post


Link to post
Share on other sites

 

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

 Even if its a $100M issue... the penalty if they didn't act fast would be much higher. Nonetheless, the Lambdas are MINTS. Being around since 2007 pretty much unchanged, and still selling like hotcakes has its rewards. In truth.. I see zero reason why GM would abandon the platform. They simply should pull a "Toyota Corolla/Camy" and keep it going for another decade with a few updates to the inside. This is one platform where driving dynamics mean zero 

 

 

The program to replace them is already well under way.  The big thing is weight.  I'm hoping that the weight loss the Acadia got translates well into the larger Traverse and Enclave once they are released.   One of the reasons they get such terrible mileage in the first place (even the overstated MPG stickers weren't great) is due to the fact they weigh so much and the 3.6 has to work hard all the time to moved these beasts around.  They could really do well with a smaller displacement V6 with a turbo tuned for torque rather than horsepower to get the low end grunt needed to move the mass.

 

My experience with the Lambda fuel economy over the years seems to have been validated with this story though.... I've always struggled to get even close to the sticker rating on the highway and in the Suburban/Tahoe I have always beaten the Lambdas in that regard.

  • Upvote 1

Share this post


Link to post
Share on other sites

 

 

100,000+ vehicles at $1,000 average, that is a $100 million mistake.  Whether they faked the label or just did it by accident costly either way.  

 Even if its a $100M issue... the penalty if they didn't act fast would be much higher. Nonetheless, the Lambdas are MINTS. Being around since 2007 pretty much unchanged, and still selling like hotcakes has its rewards. In truth.. I see zero reason why GM would abandon the platform. They simply should pull a "Toyota Corolla/Camy" and keep it going for another decade with a few updates to the inside. This is one platform where driving dynamics mean zero 

 

 

The program to replace them is already well under way.  The big thing is weight.  I'm hoping that the weight loss the Acadia got translates well into the larger Traverse and Enclave once they are released.   One of the reasons they get such terrible mileage in the first place (even the overstated MPG stickers weren't great) is due to the fact they weigh so much and the 3.6 has to work hard all the time to moved these beasts around.  They could really do well with a smaller displacement V6 with a turbo tuned for torque rather than horsepower to get the low end grunt needed to move the mass.

 

My experience with the Lambda fuel economy over the years seems to have been validated with this story though.... I've always struggled to get even close to the sticker rating on the highway and in the Suburban/Tahoe I have always beaten the Lambdas in that regard.

 

 

 

I kno. the weight. But in we all have to keep in mind that these vehicles were a safe measure for GM as possible replacements for GMT900s back in the day.. thus the size. I hope they retain that size too in the Buick and Chevy versions.. but after seeing the strides made in the K2xx and the new Acadia.. I am confident that the situation is covered pertaining to F/E

Share this post


Link to post
Share on other sites

Weight is the new HP War and GM has about the best handle on it now of any MFG. 

 

They will lose the weight and employ the aluminum steel construction along with just good old engineering the weight out. GM really had done well with this part alone. 

 

These models will do fine and only get better. 

The $100M is not cheap but it could have been much worse financially and also been much worse PR wise. As it is this has gone under the radar of most media outlets and will be forgotten soon. In fact I suspect few owners ever complained as it was something never much of an issue on the web forums over other issues.  

Share this post


Link to post
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.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

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

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Similar Content

    • By William Maley
      Tesla and General Motors lead the pack when it comes to the sales of plug-in vehicles. Data from Automotive News says Tesla stands at 193,344 vehicles, followed by GM at 181,062, But there arises a problem; once they cross the 200,000 mark, the phaseout of the $7,500 tax credit begins. Tesla is expected to be first with some predicting it taking place next month (provided they don't run into more production troubles). GM will follow sometime next year.
      Barring some sort of extension of the program, it will put the two automakers in a bit of bind where they'll be playing on an uneven playing field due to increased costs. It should be noted that the tax credit won't disappear. The way the phaseout works is that the $7,500 credit sticks around for two more quarters after the 200,000 mark is reached. After that, the credit is cut to $3,750 for the next two quarters, then it drops to $1,875 for two more quarters before it is gone.
      "The groundbreakers, the people who forged ahead and got these products out there first, could be at a significant disadvantage now. I don't think it's fair to reward a company that hasn't been as innovative with an incentive that begins when someone else's ends," said Rebecca Lindland, executive analyst at Kelly Blue Book.
      Industry experts expect GM to take a bigger hit than Tesla due to the credit affecting decisions on "lower-priced vehicles such as the sub-$40,000 Chevrolet Volt more than a $75,000-plus Tesla Model S or X" according to research done by the Institute of Transportation Studies at the University of California-Davis.
      A study in 2016 bears this out. 40 percent of Chevrolet Volt buyers admit they wouldn't have purchased one without the tax credit. Only 14 percent of Tesla buyers say the same. 
      This likely explains why various GM executives have been pushing the White House for a possible extension of the credit.
      "At the end of the day, we think having the benefits is great for the customer, because obviously it makes the EV adoption easier and more attractive," GM North America President Alan Batey told Automotive News.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      Tesla and General Motors lead the pack when it comes to the sales of plug-in vehicles. Data from Automotive News says Tesla stands at 193,344 vehicles, followed by GM at 181,062, But there arises a problem; once they cross the 200,000 mark, the phaseout of the $7,500 tax credit begins. Tesla is expected to be first with some predicting it taking place next month (provided they don't run into more production troubles). GM will follow sometime next year.
      Barring some sort of extension of the program, it will put the two automakers in a bit of bind where they'll be playing on an uneven playing field due to increased costs. It should be noted that the tax credit won't disappear. The way the phaseout works is that the $7,500 credit sticks around for two more quarters after the 200,000 mark is reached. After that, the credit is cut to $3,750 for the next two quarters, then it drops to $1,875 for two more quarters before it is gone.
      "The groundbreakers, the people who forged ahead and got these products out there first, could be at a significant disadvantage now. I don't think it's fair to reward a company that hasn't been as innovative with an incentive that begins when someone else's ends," said Rebecca Lindland, executive analyst at Kelly Blue Book.
      Industry experts expect GM to take a bigger hit than Tesla due to the credit affecting decisions on "lower-priced vehicles such as the sub-$40,000 Chevrolet Volt more than a $75,000-plus Tesla Model S or X" according to research done by the Institute of Transportation Studies at the University of California-Davis.
      A study in 2016 bears this out. 40 percent of Chevrolet Volt buyers admit they wouldn't have purchased one without the tax credit. Only 14 percent of Tesla buyers say the same. 
      This likely explains why various GM executives have been pushing the White House for a possible extension of the credit.
      "At the end of the day, we think having the benefits is great for the customer, because obviously it makes the EV adoption easier and more attractive," GM North America President Alan Batey told Automotive News.
      Source: Automotive News (Subscription Required)
    • By dfelt
      Honda and GM have partnered up to develop the next generation of high density extreme fast charging battery packs. Honda and GM have already partnered on Hydrogen cell and motor technology development. Now they sign a multiyear agreement to develop batteries for the next generation of auto's.
      To quote the news release:
      "General Motors Co. (NYSE: GM) and Honda (NYSE: HMC) announced an agreement for new advanced chemistry battery components, including the cell and module, to accelerate both companies’ plans for all-electric vehicles. The next-generation battery will deliver higher energy density, smaller packaging and faster charging capabilities for both companies’ future products, mainly for the North American market."
      http://www.gm.com/mol/m-2018-jun-0607-gm-honda-battery-cell.html
    • By William Maley
      In April of 2013, Ford and General Motors announced they would be working together on developing new nine and ten-speed automatic transmissions. The nine-speed automatic would be for front-wheel drive models, while rear-drive models got the ten-speed. Already, a number of Ford and GM vehicles are using the ten-speed. But GM will be the only one using the nine-speed.
      Automotive News reports that Ford is electing to use a new series of eight-speed automatic transmission on their vehicles. The company said the new nine-speed didn't provide enough of an improvement in fuel economy to justify the added cost and weight. According to a source, Ford made this decision before GM began to use this transmission on their production models.
      "Typically, if anyone gave me a transmission that didn't require much work, outside of tuning it for a specific vehicle, I would take it and run. It's a lot of design work after the fact to come up with their own flavor. It shows there might be some different schools of thought in terms of transmission efficiency," said Dave Sullivan, an analyst with AutoPacific Inc.
      While GM claims the nine-speed brings “smoother shifts” and a better driving experience, it hasn't brought any real gains to fuel economy. The 2017 Chevrolet Malibu 2.0T only saw an increase of one mpg on the highway when compared to the 2016 model with a six-speed automatic (33 vs. 32). The 2019 Buick Envision 2.0T saw its highway fuel economy drop by one when equipped with the nine-speed auto (25 vs. 26).
      It should be noted that one of the eight-speed transmissions Ford is using is based on the new nine-speed, minus a gear.
      Source: Automotive News (Subscription Required)

      View full article
    • By William Maley
      Cadillac's leadership is seeing a major change as current president Johan de Nysschen will be stepping down effective immediately. In his place will be Steve Carlisle who is currently president and managing director of GM Canada.
      “We appreciate Johan’s efforts over the last four years in setting a stronger foundation for Cadillac. Looking forward, the world is changing rapidly, and, beginning with the launch of the new XT4, it is paramount that we capitalize immediately on the opportunities that arise from this rate of change. This move will further accelerate our efforts in that regard,” said General Motors President Dan Ammann in a statement.
      No reason was given as to why de Nysschen is leaving after leading the brand for over three years. His tenure saw Cadillac make a number of dramatic changes including moving the brand's headquarters to New York City and introducing a new nomenclature system.
      Steve Carlisle has been part of GM since 1982 when he was an industrial engineering co-op student at the Oshawa assembly plant. He was named the president of GM Canada back in 2014 and helped the region get back on its feet. Last year, GM was number one in retail sales in Canada, with Buick, Cadillac, and GMC posting their best ever sales.
      “The potential for Cadillac across the globe is incredible and I’m honored to be chosen to be a part of mapping that future. I look forward to building on our current momentum as we continue on our mission to position Cadillac at the pinnacle of luxury,” said Carlisle.
      We'll be updating this story if any new information comes out.
      UPDATE: Automotive News and Wards Auto have learned some possible reasons as to why de Nysschen was shown the door. One is Cadillac's slumping sales. In 2017, sales in the U.S. dropped eight percent - the second straight year of a sales decline. Sales are doing slightly better in 2018 - up 8.1 percent - some of this is due to incentives being placed on slow-selling models.
      Project Pinnacle which was de Nysschen's ambitious incentive plan that would divide dealers into five tiers based on sales volume. Each tier would have different requirements in terms of showroom and service, along with perks. One contentious point that irked a number of dealers was smaller dealers setting up a "virtual showroom" where buyers could order vehicles. These dealers would not be able to stock Cadillac vehicles. Since then, Project Pinnacle has undergone a number of changes.
      Wards Auto says de Nysschen didn't move fast enough to join the fast-growing trend of crossovers. Cadillac has introduced the XT4 at the New York Auto Show last month are there plans to launch a couple more in the coming years, but this is only going to widen the gap between Cadillac and competitors.
      Both outlets report there has been growing tension between de Nysschen and GM. Such examples include him proclaiming that "Cadillac would be the technical leader at GM in the future," partly due to the launch of SuperCruise. Apparently, de Nysschen forgot about the Chevrolet Bolt and Volt. There was also the comment he made about Apple's CarPlay saying it was “extremely clunky”. (Mr. de Nysschen, have you even used CUE?! -WM)
      Source: General Motors
      GM Names Steve Carlisle Senior VP and President, Cadillac
      Johan de Nysschen leaves GM to pursue other interests; Travis Hester becomes president and managing director, GM Canada DETROIT — General Motors today announced the appointment of Steve Carlisle as General Motors senior vice president and president, Cadillac, replacing Johan de Nysschen, who is leaving the company effective immediately.
      Travis Hester, currently vice president, Global Product Programs, is named president and managing director, GM Canada, replacing Carlisle. The transition will begin immediately.
      “We appreciate Johan’s efforts over the last four years in setting a stronger foundation for Cadillac,” said General Motors President Dan Ammann. “Looking forward, the world is changing rapidly, and, beginning with the launch of the new XT4, it is paramount that we capitalize immediately on the opportunities that arise from this rate of change. This move will further accelerate our efforts in that regard.”
      Carlisle was most recently president and managing director of GM Canada, where he led a resurgence of the GM Canada franchise. In 2017, GM was number one in automotive retail sales in Canada, with Buick, GMC and Cadillac achieving their best ever sales years. Carlisle also reestablished key relationships in Canada with retailers, employees and government officials.
      “The potential for Cadillac across the globe is incredible and I’m honored to be chosen to be a part of mapping that future,” said Carlisle. “I look forward to building on our current momentum as we continue on our mission to position Cadillac at the pinnacle of luxury.”
      Carlisle will report to Dan Ammann.
      Carlisle began his GM career in 1982 as an industrial engineering co-op student at the Oshawa Truck Assembly Plant. Over the course of his career with General Motors, Carlisle has held several senior leadership positions that have taken him across the globe, including vice president, Global Product Planning (2010-2014); vice president, U.S. Sales Operations (2010); and president and managing director, Southeast Asia Operations (2007-2010).
      Hester brings extensive global leadership and global product development experience to his new role at GM Canada. Since 2016, he has led the team responsible for balancing all aspects of vehicle development, including quality, cost, appearance, purchasing, customer acceptance and performance targets.
      Hester will report to Alan Batey, president, GM North America.
      Hester began his GM career in 1995 in Australia as a technical support engineer for GM Holden. He held a variety of positions in Australia before moving to the U.S. in 2005. Since 2005, Hester has held engineering positions in both the U.S. and China, including chief engineer for several global premium luxury vehicles, the Buick Regal, Buick LaCrosse and the Chevrolet Sonic. Hester became vice president, Global Product Programs, in 2016.

      View full article
  • My Clubs

  • Recently Browsing

    No registered users viewing this page.

  • Reader Rides

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.