GM Backtracks On Plan To Nix Chevy Nickname [Video]

General Motors Co. on Thursday backed off a "poorly worded" internal memo that asked employees to refer to the brand only as "Chevrolet" -- not its long-standing nickname -- in an effort to create consistency.

In the original memo, employees were discouraged from using the "Chevy" nickname for the Chevrolet brand. GM later issued a statement to clarify the intention of the memo, saying that it was only meant to help establish Chevrolet as a global brand and that employees needed to be more focused in their communications in referencing the brand.

General Motors said " 'Chevy' will continue to reflect the enthusiasm of customers and fans."
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The internal memo was part of an effort to develop a consistent brand name as it establishes a significant global presence.

In a video also issued by GM to correct itself, Alan S. Batey, vice president for Chevrolet sales and service, said, "Chevy is our nickname. It comes from selling vehicles here in the U.S. for 100 years. We love it when people call us Chevy." Batey was one of the two GM officials who signed the original memo.

On Facebook, brand pages include Chevy Camaro, Chevy Silverado and Team Chevy.

General Motors also stated that they were reconsidering resurrecting the talifin. A sudden resurgence of the love for the 1959 Chevrolet is rumored to be the reason.





Press Release

Statement on the use of Chevrolet and Chevy

"Chevy" will continue to reflect the enthusiasm of customers and fans

2010-06-10 DETROIT -- Today's emotional debate over a poorly worded memo on our use of the Chevrolet brand is a good reminder of how passionately people feel about Chevrolet. It is a passion we share and one we do not take for granted.

We love Chevy. In no way are we discouraging customers or fans from using the name. We deeply appreciate the emotional connections that millions of people have for Chevrolet and its products.

In global markets, we are establishing a significant presence for Chevrolet, and need to move toward a consistent brand name for advertising and marketing purposes. The memo in question was one step in that process.

We hope people around the world will continue to fall in love with Chevrolets and smile when they call their favorite car, truck or crossover "Chevy."

GM Backtracks On Plan To Nix Chevy Nickname [Video]

General Motors Co. on Thursday backed off a "poorly worded" internal memo that asked employees to refer to the brand only as "Chevrolet" -- not its long-standing nickname -- in an effort to create consistency.

In the original memo, employees were discouraged from using the "Chevy" nickname for the Chevrolet brand. GM later issued a statement to clarify the intention of the memo, saying that it was only meant to help establish Chevrolet as a global brand and that employees needed to be more focused in their communications in referencing the brand.

General Motors said " 'Chevy' will continue to reflect the enthusiasm of customers and fans."
Advertisement

The internal memo was part of an effort to develop a consistent brand name as it establishes a significant global presence.

In a video also issued by GM to correct itself, Alan S. Batey, vice president for Chevrolet sales and service, said, "Chevy is our nickname. It comes from selling vehicles here in the U.S. for 100 years. We love it when people call us Chevy." Batey was one of the two GM officials who signed the original memo.

On Facebook, brand pages include Chevy Camaro, Chevy Silverado and Team Chevy.

General Motors also stated that they were reconsidering resurrecting the talifin. A sudden resurgence of the love for the 1959 Chevrolet is rumored to be the reason.





Press Release

Statement on the use of Chevrolet and Chevy

"Chevy" will continue to reflect the enthusiasm of customers and fans

2010-06-10 DETROIT -- Today's emotional debate over a poorly worded memo on our use of the Chevrolet brand is a good reminder of how passionately people feel about Chevrolet. It is a passion we share and one we do not take for granted.

We love Chevy. In no way are we discouraging customers or fans from using the name. We deeply appreciate the emotional connections that millions of people have for Chevrolet and its products.

In global markets, we are establishing a significant presence for Chevrolet, and need to move toward a consistent brand name for advertising and marketing purposes. The memo in question was one step in that process.

We hope people around the world will continue to fall in love with Chevrolets and smile when they call their favorite car, truck or crossover "Chevy."

VW intends to topple Toyota

10 million sales by 2018 is new goal

BY ANDREAS CREMER
BLOOMBERG NEWS

Volkswagen, Europe's largest carmaker, said it plans to increase sales to more than 10 million vehicles by 2018 as it seeks to dethrone Japan's Toyota.

VW's management board approved business targets, including profit margins, measured by earnings before interest and taxes, of at least 5% for the automotive business in the "medium term," Wolfsburg, Germany-based Volkswagen said in a statement Wednesday. The target doesn't include Porsche, which will be integrated by 2011, it said.

Volkswagen CEO Martin Winterkorn has a target of beating Toyota, the world's biggest carmaker, in global deliveries and profit margins. VW sold 6.29 million cars and SUVsworldwide last year, an increase of 1.1% from 2008. Toyota said last month that 2009 vehicle sales, including those of affiliates, fell 13% to 7.81 million vehicles.

"It shows plenty of ambition in the whole Volkswagen Group," said Stephen Pope, chief global equity strategist at Cantor Fitzgerald in London. "By being able to learn from Porsche's discipline, it gives them that extra springboard."

By 2018, Volkswagen, which includes the Audi luxury division and Czech unit Skoda, should have a pretax profit that exceeds 8% of sales, the company said.

Volkswagen shares fell 18 cents, or 0.3%, to 65.72 euros after rising as much as 1% on the Frankfurt exchange before the announcement. The automaker has a market value of 25.7 billion euros ($36 billion).

"With the implementation of 'Strategy 2018,' the Volkswagen group is seeking global economic and environmental leadership in the automotive industry by 2018," VW said in its statement. The plan would include "significant cost cutting, in part through the more prominent use of the modular design principle."

VW foresees steps to promote research and development of hybrid and electric cars, according to the statement. VW will also maintain "strict discipline" on spending and aim to keep the expenditure on fixed assets in automaking at about 6% of sales in the medium and long term.

SPYKER PROVIDES FURTHER DETAILS ON SAAB ACQUISITION

ZEEWOLDE, The Netherlands (1 February, 2010) - In advance of the General Meeting of Spyker shareholders, to be held on 12 February 2010, and which was convened on 28 January 2010, Spyker Cars N.V. ("Spyker") provides further strategic and financial details regarding its acquisition of Saab Automobile AB ("Saab").


ACQUISITION RATIONALE AND SAAB BUSINESS PLAN

Spyker believes that through the purchase of Saab it has a rare opportunity to acquire and rebuild a global car brand which will be repositioned towards an independent performance-oriented niche car company with an industry-leading environmental strategy. Saab's brand DNA is unique and rooted in its aeronautical heritage, innovative and independent thinking and its Swedish origins. Spyker fully supports Saab's Business Plan which will be implemented by Saab management. The Business Plan, drawn up by Saab management over the past ten months, was analysed by Spyker in assistance with Booz & Co and KPMG Transaction Services, advisors to Spyker. The Business Plan has also been analysed and supported by several advisors to the Swedish Government and the EIB.

At the General Meeting, Spyker Cars N.V. intends to adopt a resolution to change its name to Saab Spyker Automobiles NV ("Saab Spyker"). This entity will operate Spyker and Saab as two separate operating companies, each focused on its distinct target markets with their respective vehicle lines. As previously stated, Saab Spyker is committed to execute the Saab Business Plan. It is the intention to enhance it in several areas. The highlights of Saab's strategy will be:

* Saab will be a stand-alone niche manufacturer with three to four model lines: 9-3 (sedan, hatchback, sports estate, X and convertible) and 9-5 (sedan, sports estate and X) and the 9-4X for both the US and European markets. In addition, Saab will investigate the potential of adding a fourth smaller car line ("9-1") in due course provided that the positive development of the smaller car segment continues. However, this model is currently not envisaged in the Business Plan so if the outcome of the investigation is positive, additional financing to develop this model could be required.

* Saab's product portfolio will be renewed completely, beginning with the launch of the new 9-5 early this summer, the new 9-4X in early 2011 and the new 'all Saab' 9-3 in 2012.

* Saab will continue to be repositioned against other brands such as Audi (A4/A6) and BMW (3/5 series) as a premium brand, leveraging its strong and unique brand heritage.

* Saab's Technical Development Center in Trollhättan has full capability in developing complete vehicles and will continue to do so. In areas such as safety, environment, driving characteristics, practicality, turbo technologies and several other innovations, the Saab brand is among the best in the industry.

* With Trollhättan as one of the most efficient mid-size car plants in Europe, production and sales volumes are aimed to be rebuilt to recent pre-crisis levels of about 100,000 to 125,000 vehicles including the 9-4X built in Mexico.

* The current dealer network will be re-energized with a new sales and distribution approach in certain markets, which will be implemented during 2010.

* The economies of scale of the on-going collaboration with GM after Closing the acquisition (February 2010) will continue to be leveraged in sourcing via ancillary agreements, with independent sourcing gradually increasing to reduce GM dependency and obtain improved access to other suppliers and the co-development of unique innovations.

Saab Spyker believes that its two brands, both deeply rooted in aeronautical and automotive history, will benefit from sharing certain assets and technology services. Examples include but are not limited to:

* Saab's extensive global network of 1,100 dealers.

* The extensive engineering know how and innovative technologies available at Saab.

* Sharing of activities in marketing & sales: i.e. merchandising, promotion & sponsorship activities, etc.

In the future, the two brands will be able to share certain parts and components and expect to obtain access to supplier and partner resources not available to Spyker or Saab individually today.


FUNDING OF SAAB

The Saab Business Plan requires approximately $1 billion in peak funding for Saab in advance of the return to profitability, forecast to occur by 2012. The funding is provided in part by GM, through $326 million Redeemable Preference Shares ("RPSs"), and in part through other contributions, which concern various substantial contributions to the funding of Saab's Business Plan on favorable terms for supplies by GM to Saab and deferred payments from Saab to GM. The remaining amount, apart from cash at bank, is to be provided by a EUR 400 million loan from the European Investment Bank for certain R&D projects at Saab. Securing this EIB loan is a condition precedent to closing of the Saab acquisition ("Closing").

With this financing in place, the business plan does not envisage any future funding being required, neither from Spyker or elsewhere, for Saab to return to profitability. The business plan targets car production and sales at or below historical levels of 100,000 to 125,000.


Explanation on the two sources of funding:

Redeemable Preference shares
At Closing, GM will convert USD 326 million of pre-closing receivables on Saab into RPSs in Saab. The issue of the RPSs will therefore NOT cause any dilution for the shareholders in Spyker. The voting rights attaching to these RPSs constitute 0.0005% of the total voting rights in Saab. The other 99.99% of the voting rights (100% of the ordinary shares) will be held by Spyker. Since the RPSs are capital and not a loan, no interest is due at any time by Saab. The RPSs carry no dividend from Closing until December 31, 2011. A dividend entitlement of 6% starts from January 1, 2012 through June 30, 2014 and increases over time to 12% as from July 1, 2014 until the scheduled redemption date of December 31, 2016. The dividend over 2012 will be added to principal, but as from fiscal year 2013 the dividend is payable in cash. Should Saab have insufficient distributable reserves to pay the cash dividend it will be added to principal increased with a penalty factor of up to 4%, but such that the total dividend entitlement will never exceed 12%.

In the period 2010-2016, the average dividend payable is about 4%, which is considerably below the average interest on a comparable subordinated loan.

The RPSs qualify as equity and therefore, if Saab cannot pay dividends or redeem the RPSs, Saab will not be in default but the RPSs will simply continue to accrue. Also, the RPSs cannot be redeemed as long as the EIB loan is not yet fully repaid. The Saab Business Plan envisages redemption of the RPSs starting in 2016 out of retained profit, without additional funding (from Spyker or anyone else) being required.


EIB loan
The Share Purchase Agreement is subject to the execution of a EUR 400 million loan agreement between Saab and the European Investment Bank ("EIB"), for which a guarantee was obtained from the Swedish Government on January 26, 2010. This loan will be issued to Saab. All amounts payable by the EIB are specifically earmarked to the Euro for designated Saab projects and capital expenditures and represent 50% of these projects or capital expenditures. The projects mainly relate to increasing fuel efficiency and clean car technology. The remaining 50% is funded by Saab itself pursuant to its Business Plan. Spyker will not have any access to the EIB funds which are completely ring-fenced nor will it pay any part of the Purchase Price with proceeds from the EIB loan. The guarantee is subject to approval by the European Commission. Saab and the Swedish Government have provided all required information to the EC prior to the issue of the guarantee so the decision by the EC is expected very soon.


FUNDING OF SPYKER

Spyker's existing bank loans in the aggregate amount of EUR 57 million are refinanced by Tenaci Capital B.V. ("Tenaci"). The terms and conditions of this loan will mirror those of the existing loans it repays, including the right to convert EUR 9.5 million into ordinary shares at EUR 4.00 per share. The term of the loan is 12 months and the interest 10 percent above Euribor. After payment of the last instalment of the Purchase Price, Tenaci has the right to collateralize the loan on terms and conditions identical to those on which the existing loans were collateralized.

The Purchase Price of Saab amounts to USD 74 million (EUR 53.23 million at the current exchange rate of 1:1.39). The first instalment of USD 50 million, to be paid on Closing, will be paid as follows: USD 25 million is borrowed from Tenaci at the same interest rate as the other funding extended by Tenaci, without the right to convert into shares. This amount is currently already in escrow with General Motors.

The other USD 25 million is financed through a share issue, largely through a commitment from GEM Global Yield Fund Ltd under an equity facility concluded between Spyker and GEM. Spyker currently does not intend to draw in excess of USD 25 million under this facility.

The second instalment, USD 24 million, will be payable on July 15, 2010. Spyker has been approached by various investors to fund this instalment. Spyker intends to finance this amount primarily through senior debt (senior to the debt owed to Tenaci), but does not rule out other alternatives. Spyker has committed to pledge its assets to GM as security for this final tranche.


FUNDING OF TENACI

Tenaci's equity is wholly owned by Investeringsmaatschappij Helvetia B.V., the personal holding company of Mr. Victor Muller. Tenaci obtains its debt funding from sources that wish to remain anonymous and with which Tenaci has entered into non-disclosure agreements. The terms and conditions of Tenaci's own financing do not impact Spyker or Saab in any way.

Tenaci has successfully bought Mr. V. Antonov's current shareholding in Spyker consisting of 4.6 million ordinary shares, subject to closing of the Saab acquisition. Currently Tenaci has no plans to make a public offer on all of the issued shares in Spyker.
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Pininfarina family stake to be sold - Tata potential suitor

Pincar, the company owned by the Pininfarina family may sell its majority stake in troubled design house and coachbuilder Pininfarina. Through Pincar the family holds a majority stake of 50.7%. Selling the piece is a decision taken at a board meeting last week and was part of a debt agreement made with the banks in 2008. The end result would be that Pincar would no longer be the majority owner but at the same time the family would not leave the business completely.


A number of well-known industry names have been touted as possible new partners. One of them is Tata which owns the Tata Motors, Jaguar and Land Rover brands. The Indian company has an existing alliance with Fiat and was mentioned as an investor last year. Being closely related to Pininfarina, a company that has designed some of the most striking Ferraris and Maseratis in the past would certainly give Tata a boost in its design department.


Another possible partner is said to be Bolloré, the French industrial company. Pininfarina is working with them to develop an electric car dubbed, Bluecar. In 2008 founder Vincent Bolloré expressed an interest in becoming one of the shareholders at Pininfarina.


Could Ford also be in the mix? The Italian brand builds the Focus Coupe Cabriolet for the blue oval while another agreement sees it producing the Volvo C70 at a plant in Uddevalla, Sweden.
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Fiat back in the mix as Bertone manufacturing unit goes up for sale

You could say that Fiat's on a bit of a spending spree lately. While everyone else is struggling to trim expenditures and sell off divisions, Fiat's been buying them up. So after moving in at Chrysler's headquarters in Auburn Hills, Michigan, and making offers for GM's European and Latin American operations – including Opel and Vauxhall – it should come as no surprise that the Italian automaker is at it again, this time placing a non-binding offer to acquire Carrozzeria Bertone.


The offer is one of five currently being entertained by Italy's oldest coachbuilder and the courts administering its bankruptcy. Among other bidders reported are Domenico Reviglio (the Gruppo Prototipo chief who was slated to buy the company last year), former Lancia CEO Gianmario Rossignolo, Chinese automaker FAW and an additional unspecified Spanish concern. It is also not the first time Fiat considered rescuing Bertone after a previous attempt failed over two years ago.


Although the reports remain somewhat ambiguous, it appears that the unit in question is only the contract manufacturing division Carrozzeria Bertone SpA, a separate unit from the Stile Bertone design house under the Gruppo Bertone umbrella.


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Fortwo 4 Less: Smart offers first incentives in U.S.

So far this year, Smart USA has sold just 7,451 Fortwos, which is down nearly 16% over the first five months of 2008. May sales, though, were down an alarming 56.6% to 1,169 units. To stem the rushing tide of order cancellations and slow sales, Penske has decided to offer its first-ever incentives on the Fortwo. From now until the end of July, buyers may qualify for 4.2% financing through Daimler Financial Services for the purchase of a new 2009 Smart Fortwo.


Penske Automotive Group, distributors of the Smart Fortwo here in the United States, recorded an impressive 24,622 total sales of the diminutive city car in 2008 and dealers widely reported that they could have sold even more had they been available. With that in mind, the nascent company set what seemed at the time like a realistic sales target for 25,000 units in 2009. That may have been a bit optimistic.


If this incentive has a positive impact on sales, expect it to be extended a bit longer. Further, Penske is considering making it possible for dealerships to order new cars without accepting the refundable $99 reservation from a customer that's currently required, which could have the desirable effect of placing more new vehicles on dealer lots for buyers to choose from.
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Sweden car firm Koenigsegg to buy Saab: report

Swedish sports car maker Koenigsegg is to buy Saab Automobile from US giant General Motors with support from Norwegian investors, a broadcaster reported on Thursday.

The buyers have signed a letter of intention to buy Saab, Swedish television station SVT reported on its website, citing anonymous sources and naming Koenigsegg. It said negotiations to wrap up the deal would last months.
more detail. ...

Greek court rules against Daimler on China SUV

There's an old saying that "justice is blind," an adage which has taken a literal meaning thanks to a Greek court's decision to dismiss Daimler's lawsuit against a Chinese copy of the Smart fortwo.


Although the case looked promising for Daimler early on, a Milan court ruling in mid-December 2008 in favor of Shuanghuan in the BMW case seemed to have put the nail in Daimler's coffin. The court found that visual and price differences between BMW's X5 and Shuanghuan CEO were enough to prevent consumers from confusing the two. After winning the case against BMW, Shuanghuan resumed the sale of its CEO SUV in Italy.


The Greek court determined that "an informed buyer would not confuse the Noble with the Smart Fortwo." They also stated that because the two vehicles offer different technical specifications, any exterior styling similarities are irrelevant and almost inevitable because they're both mini-cars.


Chinese auto makers reportedly have 'borrowed' inspiration from BMW's X5, Daewoo's Matiz and the Mercedes-Benz SLK. Various legal challenges have been mounted, some successfully and others less so.


Mercedes-Benz (China) Ltd. started to sell Smart Fortwo, the classic low-emission car under Daimler's Mercedes-Benz brand, in China on April 8 this year.
Source: gasgoo via World Car Fans

Ssangyong given go-ahead to reconstitute, debars liquidation

A South Korean court just approved a plan to keep SsangYong Motor (SYMC) out of liquidation. In granting its approval the court agreed with a recent report that showed SsangYong is worth more alive than dead. After entering their version of Chapter 11 back in February, the company was faced with liquidation unless they came up with a convincing argument that they could turn things around.



Press Release:

SSANGYONG MOTOR GETS GO AHEAD TO RESTRUCTURE

SsangYong Motor (SYMC) today cleared a significant hurdle in its restructuring plans when a South Korean court gave its approval to put the plans into action.

The court confirmed a recent Samil PricewaterhouseCoopers assessment that the manufacturer had a greater value as a going concern than its liquidated value, and ordered SsangYong to submit its full restructuring plan by mid-September. Much of this is already in place, including a vital new model programme and a reduction in the workforce by over a third.

Paul Williams, managing director of distributor Koelliker UK Ltd. said: "This is the news we were hoping for and it means that SsangYong now has the lifeline it needs to implement major changes. The future will continue to be difficult, as it is throughout the auto industry, but the result should mean a leaner, much more efficient SsangYong. We already know that there will be a broader range of passenger cars using the latest petrol, diesel and hybrid technology, and the first – the C200 – will go into production later this year. Our dealers can now go forward with renewed confidence."

SsangYong applied for, and was granted court receivership in February after the fall-out of the international credit crunch, a drop in demand and even higher raw material, oil and energy prices. Court receivership is similar to US Chapter 11 status, giving the company protection fromcreditors and time to formulate and implement a corporate resuscitation plan. Under the arrangements, the court appointed former Hyundai Motor president Lee Yoo-il, and SYMC vice-president in charge of finance, Park Young-tae as co-legal administrators.

Despite these uncertainties, SYMC has forged ahead with the development of the new C200 'compact urban vehicle,' showing it at the Seoul Motor Show and most recently at the Barcelona Motor Show earlier this month. Styled in Europe, the C200 is a new monocoque design engineered for both front and four wheel drive, with advanced petrol, diesel and diesel hybrid engine options. It is scheduled for production later this year.

In the UK, the SsangYong line-up of Kyron, Rexton and Rodius passenger cars starts at £14,995 with light commercial versions of the Kyron and Rexton also available. SsangYong is fully participating in the government scrappage scheme which offers £2,000 off of a new car when an old (10 years old or more) car or van is traded-in for scrap.

www.ssangyonggb.co.uk
via:autoblog

Dodge Viper & Jeep Wrangler to be Axed

Doom and gloom are written in the sections of the bankruptcy filing documents that deal with Chrysler's Viper and Jeep Wrangler brands. These documents refer to two Chrysler entities, one called OldCo and the other is the New Chrysler. OldCo assets would not be affected by the recently-announced Fiat/ Chrysler tie up and would ultimately be closed down by 2010.
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