GM Recalling Over 1.5 Million Vehicles Worldwide for Fire Danger

A massive recall is underway for numerous General Motors cars and trucks sold globally over a glitch in the wind shield wiper fluid heating system that could ignite a fire. The recall concerns a total of 1.53 million Buick, Hummer, Cadillac, Chevrolet, GMC and Saturn models, with 1.36 million of those sold in the U.S.

The National Highway Traffic Safety Administration said on its Web site that GM had tried to fix a similar problem on the same cars in 2008 following reports of fires resulting from an electrical short cut in the system that heats windshield-washer fluid. However, the agency said that since then, it has received reports of "thermal incidents" on the repaired vehicles.

General Motors said that the single supplier of the technology that helps melt ice in freezing temperatures, Micro-Heat, filed for bankruptcy in 2008 after the Detroit automaker stopped offering its HotShot wiper-fluid heater after the first recall.

And since the maker of the system is out of business, GM decided to permanently disable and remove the heated-washer fluid module altogether on the recalled vehicles. According to reports, aside from removing the module, General Motors will also compensate the owners of the affected vehicles with $100 for the loss of the feature.

GM Slashes Prices of Remaining Pontiacs and Saturns by up to 46%

If you ever wanted to buy a Pontiac or a Saturn and you don't mind that both brands will soon pass into the books of history, now's the time as General Motors is offering dealers huge incentives to move a few thousand leftover vehicles from the two discontinued marques, the Wall Street Journal reported today.

According to the paper, the Detroit automaker sent a letter to dealers on December 23 stating that it would pay them around $7,000 for every new Pontiac or Saturn on their lot that is moved to their rental-vehicle or service-vehicle fleets.

With this move, the leftover vehicles will be classified as used (even though they're new, the dealers will technically be the vehicles' first owner) thus allowing dealers to sell them at a huge discount which is said to be as much as 46% off the sticker price.

The daily newspaper said that the offer will expire on January 4 which is the last day of the December car-sales month with GM booking the sales to dealers as fleet deliveries.

Saturn's leftover portfolio includes the Vue compact crossover, Sky Roadster, Aura Sedan, Astra compact hatch and Outlook crossover, while Pontiac's range comprises of the Solstice Roadster and Coupe, G6 Sedan, Coupe and Convertible, and the G8 sports sedan.

However, you'll have to check with your local dealer to see which models are available. And if you do, don't hesitate to leave us a comment here telling us what kind of an offer they made you.

Via: WSJ (Sub. Required)

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BREAKING: Penske Terminates Discussions with GM on Saturn After Failing to Agree with Third Party Automaker

This just in; Saturn will soon be history as Penske Automotive Group (PAG) announced today that it has ceased discussions with General Motors to buy the nameplate, ultimately sealing the fate of the brand. The automotive retailer said that it terminated the talks not because of a disagreement with GM, but due to concerns related to the future supply of vehicles beyond the agreed period it had negotiated with the Detroit maker.

In particular, Penske had negotiated a deal with General Motors to source its vehicles on a contract-manufactured basis for a specific period of time, after which, the company would source vehicles from another maker under a similar contract-manufacturing agreement.

Penske said that it had negotiated the terms and conditions of an agreement with another manufacturer (not GM, a third party), however as it turned out, the unnamed manufacturer's board of directors rejected the agreement.

"Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction," said Penske in a prepared statement.

GM said that it just learned about Penske's decision to terminate talks noting that the news is "very disappointing" and that it "comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality."

"As a result of PAG's decision, we will be winding down the Saturn brand and dealership network, in accordance with the wind-down agreements that Saturn dealers recently signed with GM. Pursuant to the terms of those agreements, the wind down process will be determined and communicated shortly," said GM's President and CEO, Fritz Henderson.

General Motors said that Saturn customers and owners will continue to be able to buy and service their vehicles at Saturn retailers during this process while when the wind down is complete, they will be able to service their cars at other GM dealerships.

"Today's disappointing news comes at a time when we'd hoped for a successful launch of the Saturn brand into a new chapter. We will be working closely with our dealers to ensure Saturn customers are cared for as we transition them to other GM dealers in the months ahead. I'd also like to thank every GM employee and Saturn retailer who worked so hard to try to make this new beginning happen for Saturn," said Henderson.

BREAKING: GM Confirms Penske as Saturn Buyer, Says Production of Aura, Vue and Outlook Will Continue

Confirming an earlier report this morning, General Motors has announced that it has reached a preliminary agreement with Penske Automotive Group for the sale of the Saturn brand. The financial terms of the deal were not disclosed but GM said that it expects the close the transaction in the third quarter of this year. The American automaker said that if completed, the deal will save more than 350 dealerships and 13,000 jobs at Saturn and its retailers in the United States.

Under the agreement, Penske, the second-largest retailer in the States, would obtain the rights to the brand as well as certain other Saturn assets while GM would continue production, on a contract basis, of the Saturn Aura sedan, Vue SUV and Outlook SUV - yes, the Astra and Sky Roadster are 'dead'.

"This is the combination of two iconic teams: Saturn and Penske," said Saturn general manager Jill Lajdziak. "GM had the vision to create Saturn and has the desire to see it succeed in the future. There has been a groundswell of support for Saturn, with our retailers and owners urging us to save the brand," Lajdziak continued. "We heard their call loud and clear, and it inspired us as we worked to secure Saturn's future."

"Saturn has a passionate customer base and outstanding dealer network," said Roger Penske, chairman of Penske Automotive Group. "For nearly 20 years Saturn has focused on treating the customer right. We share that philosophy, and we want to build on those strengths."

Smart Distributor Reported to Have Won Bid for GM's Saturn Brand

The Penske Automotive Group, a car retailer that operates mostly in the U.S. and the UK and has the distributing rights for Daimler's Smart cars in the States, is the winning bidder for GM's Saturn unit, Bloomberg reported Friday morning. Citing a an unnamed source close to the negotiations, the news agency said that Penske will pay a price of $100 million to $200 million and that the deal may be announced as early as today. Earlier this week, General Motors announced that it had reached a preliminary agreement to sell Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery Co. while the U.S. automaker that is currently reorganizing in Chapter 11 also plans to sell its Saab division.

Via: Bloomberg

VIDEO: Inside Camera Shows New Opel Astra on the Track

GM's Opel unit has released another video of the new Astra hatchback. This time we get the chance to see car through an inside camera during testing at Opel's test center on the site of a former military airfield located in Pferdsfeld, 80 kilometers west of the automaker's Rüsselsheim headquarters. The video footage also gives us a quick glimpse of the 2010 Astra's interior, photos of which have yet to be revealed to the public. The new Astra will make its world debut at the Frankfurt Auto Show in September with the first example of the car arriving in European showrooms this fall.

General Motors Reviewing Offers for Sale of Saturn Brand

In an official statement released to the media this morning, GM announced that it is proceeding to the next step in concern of the sale of Saturn by reviewing bids from the potential buyers. The American automaker said that it has hired S.J.Girsky&Co as an advisor to help secure an agreement with a specific buyer later this year. In mid-April GM had revealed that a group of suitors that included some of Saturn's dealers and a company called Black Oak Partners had expressed an interest in buying the brand and its retailer network.

GM Officially Announces Pontiac's Death, Saab, Hummer and Saturn to be Gone by 2009

This is the end of the road for Pontiac as General Motors confirmed earlier media reports by officially announcing on Monday the death of the 83-year-old marque that will be phased out by the end of 2010. As part of its revised "Viability Plan" that accelerates the timeline for a number of important actions, GM said that it will speed up "the resolution of Saab, Saturn, and Hummer to the end of 2009, at the latest." The General will focus on four core brands in the U.S., Chevrolet, Cadillac, Buick and GMC, offering a total of 34 nameplates in 2010 compared to 48 in 2008, a reduction of 29 percent.

"We are taking tough but necessary actions that are critical to GM's long-term viability," said Fritz Henderson, GM president and CEO. "Our responsibility is clear - to secure GM's future - and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team."

Other significant changes in GM's updated "Viability Plan" include the accelerated idling and closures of powertrain, stamping, and assembly plants while the firm will almost cut its U.S. dealer count in half, from 6,246 in 2008 to 3,605 by the end of 2010. This is a further reduction of 500 dealers, and four years sooner, than the previous plan submitted to the U.S. Treasury on February 17.

And how will all these measures affect U.S. workers? According to GM, the updated plan will see an additional reduction of 7,000 to 8,000 hourly employees. Overall, U.S. hourly employment levels are projected to be reduced from about 61,000 in 2008 to 40,000 in 2010, a 34 percent reduction, and level off at about 38,000 starting in 2011.

GM Says Investor Group is Interested in Buying Saturn

General Motors revealed on Wednesday that an investor group which includes a company called Black Oak Partners along with some of Saturn's dealers is interested in acquiring the firm's Saturn division. "Over approximately the past 60 days, a sub-committee of Saturn retailers has been studying the feasibility of the sale or spin-off options, and has identified some parties that are potentially interested in a purchase or spin-off of Saturn," said GM in a statement.

The automaker revealed that one of the interested parties is Black Oak Partners, which is a private equity firm, however, GM wouldn't identify any of the other potential buyers.

"With respect to what the eventual outcome concerning Saturn might be with Black Oak or any other interested party, it is simply premature at this time to speculate on what any eventual outcome may be. When we have additional information on this topic, we will communicate to all involved," GM said.

As you probably already know, General Motors is in a race against time to reorganize as it may very well be forced into bankruptcy by the Obama administration by June 1.

New Opel Meriva MPV with Suicide Rear Doors Spied

The development of the next-generation Opel Meriva is moving ahead as planned with the German automaker removing more and more camouflage off the prototype models. In these latest scoop photos, the prototype Meriva has lost the confusing chequered black and white taping revealing many details on its design. Even though Opel has attempted to mislead us with a pair of fake rear-door handles, the new Meriva will retain the 2008 Geneva Show car's rear-hinged suicide doors called FlexDoors.

While the front doors are conventionally designed with front hinges, the Meriva's rear doors swing open towards the back of the car to a 90-degree angle. Another feature of the FlexDoors is that the front and rear doors can open independently of each other. GM's people support that the patented FlexDoors will make the Meriva more comfortable, versatile and safer than the current model.

The new Meriva will borrow several design cues from the Insignia including the front-end styling and the delta-wing blade on its flanks. While it won't be as exciting as the concept study, Opel's second-generation mini-MPV looks like it will be far more stylish than today's Meriva.

Same goes for the interior that is stylistically inspired from - you guessed it- the Insignia. Even though the car's design was a high-priority, GM did not forget about the Meriva's functional and practical side. Among other features, the 2010 Meriva will be equipped with Opel's variable FlexSpace rear seating system that allows the transformation of the vehicle from a five-seater to a four, three, two or even single seat vehicle without the need to remove seats.

The 2010 Meriva will adopt the latest version of GM's Gama platform sharing many of its underpinning with the new Corsa. It is expected that the new Meriva will grow in size offering improved space for passengers and their luggage.

While we don't have the full Monty on the powertrain options, it is anticipated that apart from the usual gasoline and diesel engines found in the Corsa, the new Meriva will also be available with GM's brand-new 1.4-liter turbocharged 4-cylinder petrol unit with outputs ranging from 120 hp to 140 HP.

Unlike its chief rivals that include the Honda Jazz and Citroen C3 Picasso, the Meriva's range will also feature a high-performance OPC version powered by a turbocharged 1.6-liter gasoline unit with an output of around 180-horsepower.

Sales of the new Meriva will begin in Europe in 2010. As for any chances seeing the Meriva in the U.S., for the time being, your guess is as good as ours.