truth about domestics

Ford Motor Company is excited about the all new Ford Fiesta.  This car is something to be excited about, as it has won numerous awards in Europe, as well as winning comparisons against sales champs like the Honda Fit.  So, to generate more interest, Ford gave away free six month leases to 100 Fiestas.  Thinking that the “Fiesta Movement” as it is called was not enough, Ford has decided to do something even bigger.  Five teams of five European spec Fiestas will be traveling around the country, making stops in 100 cities in the hope of recording 100,000 test drives before the car is even available for sale.  For all the details, as well as Ford’s press release, head on over to Autoblog.

General Motors telecommunications system, OnStar, is getting a pretty major upgrade that will help emergency responders get to an accident quicker.  The upgrade will allow OnStar advisers to electronically transmit the precise longitude and latitude directly to a 911 center.  Thus allowing the authorities to know exactly where you are and respond as quickly as possible.  For more, head on over to Autoblog.

Ford will be raising capital by selling 300 million shares of common stock (stock ticker F). Currently, Ford has about 3 billion outstanding shares of common stock, meaning that Ford will dilute common stock by about 10%. As of right now, Ford is trading at about $5.50, which is down about 10% since yesterday; that’s rocket science right there!

While I do not like the fact that my shares (I’m a Ford stockholder) are being devalued by dilution, I understand that this is good for the company, and ultimately good for the stakeholders (including shareholders). One problem that American companies have historically faced is that they make decisions for next quarter’s results (pleasing the shareholders), not for the future. Maybe we could learn something from the latest recession? Maybe…

Read the article and MarketWatch.

Bob Lutz and other GM executives sold some or all of what was left of their personal stake in GM…for good reason. Whichever way GM gets out of this mess, bankruptcy or not, the future does not look good for shareholders. If a bankruptcy ensues, shareholders will loose their entire stake. And if GM has its way, common shares of GM stock will be diluted 100 shares to one after stockholders are given only 1% of all outstanding shares; the rest would go to the UAW and the treasury.

I hate to post bad news, but tough decisions need to be made. The sooner the better…

Read the article at MarketWatch.

Chevy Orlando concept (GM)

GM chief executive Fritz Henderson says that Chevrolet will be fully competitive, and a leader in fuel economy within two years.  This transformation will be lead by new products like the new 2010 Camaro, Cruze, Spark and seven-seat Orlando, all due out for the 2011 model year.  The new Equinox, launching in June, is expected to get 32 mpg on the highway, and the Chevy Volt range-extended-plug-in is on track to arrive in late 2010.  For more, head on over to AutoWeek.

2009 Cadillac STS-V

The writers at MotorAuthority have noticed that, in addition to the Impala SS and Cobalt SS sedan, the Cadillac STS-V and Pontiac G6 GXP will both be absent from GM’s lineup in 2010.  Not really a surprise considering the STS is left behind by the newer, better, bolder, brighter CTS in both base and V trims.  And with the death of Pontiac coming by the end of 2010, the G6 is on its way out anyway, might as well kill the over-vented front end that is the GXP model.

Corvette ZR1 "Hero Edition" (GM)

Only one Corvette ZR1 “Hero Edition” will be built by General Motors and it will be raffled off to honor the Kids Wish Network’s “Hero of the Month.”  The Hero of the Month is a child who has faced and overcome traumatic and life-changing circumstances with courage and spirit.  Pairedwith the ZR1 is a Black/Red 1967 Corvette 427 / 390 hp roadster that will be included in the Win The Vette’s Corvette Dream Giveaway.

For all the details, head on over to Corvetteblogger.

Gift cards for autos program (Glenn Moore/Tracy Press)

I would like to dedicate this article to those out there among us that continue to believe that we aren’t all dependent on the auto industry.  Tracy, California has a dilemma.  The city used to receive 20% of it’s revenue from car dealers, a figure that has recently dropped to 15%.  The sales tax from cars and trucks sold in the city makes up 30% of the city’s $45 million fun, which pays for police and fire services.  So what will the city do, now that sales have fallen 50% in the region?  Dealerships in the area are closing up, and that could spell hard times for the citizens in the area.

The solution?  The municipality is giving away 800 $500 gift certificates to car dealerships in the region to help increase sales.  For the full story, head on over to the Tracy Press.

2010 Chevrolet Corvette Grand Sport

General Motors CEO Fritz Henderson says that the future of the Corvette is secure, even as GM slashes its size and costs to meet the ever shrinking marketplace.  In an interview with AutoWeek, Henderson states that the current platform is undergoing “continual development” (as seen in the 2010 Grand Sport package) and that the seventh-gen “C7″ is also on track.  A timeline for the next model has not been laid out, but analyists predict it will be out no earlier than the 2014 time frame.

Check out CorvetteGuys.com and their large inventory of Corvette Body Parts.

I saw this video on Jalopnik; they were right, it is disturbing. So for your entertainment, take a look.

It’s a dealership commercial emulating the E-Trade commercials with a talking baby.