Former GM CEO Rick Wagoner to Receive $10 million Retirement Package

The bad news for former GM CEO Rick Wagoner is that the firm's bankruptcy proceedings and the formation of the New GM led to a cut of around 50 percent in his retirement package. The good news for Wagoner is that he is still entitled to a pension and benefit package valued over $10 million when he retires on August 1st, 2009, according to company documents filed on Tuesday with the U.S. Securities and Exchange Commission.

Wagoner, who was given the boot by the Obama administration back in March, is eligible for $1.64 million in benefits for each of the next five years along with an annual pension of $74,030 for the rest of his life. For the record, Wagoner who worked at GM for 32 years, is only 56 years old.

And while these numbers may sound scandalous to people like ourselves, truth is that it is not unusual for CEOs of large companies to receive enormous compensations that dwarf Wagoner's $10 million package.

For example, the AP reported that Lee Raymond, ex-chairman of ExxonMobil, pocketed a $400 million retirement package in 2006 while Stan O'Neal, who was kicked out of Merrill Lynch in 2007, received $161.5 million in stock, options and retirement benefits.

"For a company making billions of dollars in revenue, an executive regularly making millions of dollars every year, I think a $10 million retirement package, considering the length of time that he's been with the company, I think it's certainly understandable," said Aaron Boyd, a research manager with Equilar Inc.

Still, we'd by lying if we didn't say that for people like us who live on monthly paychecks with no room for savings, these numbers are simply mind-blowing and extremely hard to justify.

Via: AP - Yahoo

Pontiac G8 to be Reborn as the Chevrolet Caprice in the USA, According to Lutz

No sooner that we learned that Bob Lutz reversed his decision to retire from GM at the end of the year, deciding to extend his career as the firm's vice chairman in charge of all "creative elements of products and customer relationships", and the 77-year old is offering American car nuts a reason to celebrate. In an interview with Automobile Magazine, Lutz revealed that the Pontiac G8 isn't dead after all.

Despite the fact that only a month ago, in a live chat with online readers, GM CEO Fritz Henderson supported that the rear-wheel drive Pontiac sports sedan won't live in another brand, Lutz told the magazine that the G8 will be reborn in the USA as the Chevrolet Caprice.

"The last time we looked at the G8, we decided that we would continue to import it as a Chevrolet," Lutz said. "It is kind of too good to waste." Can't disagree with Lutz on that one....

He also added that other key factors in this decision were the export agreements with Australia and the fact that the Holden Commodore is already sold in many countries as a Chevrolet.

What Lutz didn't say is in what form the G8 will survive in the USA - as a Holden Commodore / Pontiac G8 with a Chevy grille or will GM prefer to import the longer-wheelbase Holden Statesman / Caprice? That's probably a good point to start the conversation in the comment section below.

In addition to the G8, Lutz told the magazine that the Cadillac CTS-V Coupe could be closer to production than we think, noting that that members of the government taskforce were quite interested in the BMW M3-challenging sports coupe during the presentation of the firm's product plan.

"When we went through design and looked at the future product, the procession stopped at the model of the Cadillac CTS-V Coupe," Lutz said. "I think that some of these guys are personally going to buy CTS-V Coupes."

Source: Automobile , Via: Autoblog.com

2010 Opel Astra and Alfa Romeo Milano Styling: Too Close for Comfort?

Many of you, our readers, were quick to point out the Alfa Romeo Milano showcased in the leaked factory spy shots shared one too many styling similarities with GM's forthcoming Opel Astra hatchback. Are we talking about a cloning case here? Absolutely not. Even though we only have these fuzzy photos of the Alfa to go by, the only way you're going to confuse these two cars is if you wasted your paycheck on drinks. But, we think that many of you caught on to something and by that we mean the styling of the rear quarters.

And oh, since we're all quick to jump in the bandwagon when we see a Chinese vehicle 'borrowing' styling traits from other cars it's only fair that we do the same with everyone else.

But before we go into any details, let us say that designs are not finalized in a matter of weeks so don't go and claim that Alfa 'plagiarized' Opel (unless you know something that none of the rest of us don't) just because the Astra made its debut first.

Truth to be said, when we compared the two cars side by side, we were quite amazed by the similarities in the design of the rear quarter panel and the rear-end. If we didn't know any better, we'd say that from the B-pillar and back, it's as if someone drew a rough sketch and gave it to two different design teams for further development: one from Germany and one from Italy.

Just look at the crisp belt-line and how it meets the corners of the same shaped tail lights, then pay attention to the window line, the C-Pillar, the wraparound rear windshield with the roof spoiler and even the styling of the rear bumper with the blacked out apron 'swoopy' curve line.

So in a nutshell, that's what we think. Time to agree, disagree or just simply have your say in the comment section below.

New GM Officially Exits from Bankruptcy Protection

On Thursday General Motors cleared the final hurdle for selling most of its assets to create the New GM which is primarily owned by the governments of the United States (60.8 percent), Canada and Ontario (11.7 percent), and by a trust fund providing medical benefits to UAW retirees (17.5 percent) while the 'Old GM' retains a 10 percent stake.

"Business as usual is over at GM," said Fritz Henderson, president and CEO of the New GM. "Today marks a new beginning for General Motors, one that will allow every employee, including me, to get back to the business of designing, building and selling great cars and trucks and serving the needs of our customers," Henderson added.

"Business as usual is over at GM," said Fritz Henderson, president and CEO of the New GM. "Today starts a new era for General Motors and everyone associated with the company. Going forward, the new General Motors is fully committed to listening to customers, responding to consumer and market trends, and empowering the people closest to the customer to make the decisions. Our goal is to build more of the cars, trucks, and crossovers that customers want, and to get them to market faster than ever before."

General Motors, which will continue with four brands (Chevrolet, Cadillac, Buick and GMC) after the phase-out of Pontiac and the sale of Saab and Saturn, will have a total of 34 U.S. nameplates by 2010.

The company said that the fewer but better entries will enable the "New GM to put more resources into each nameplate, resulting in better products and stronger marketing."

General Motors is also cutting down on its dealerships as the company plans to reduce the number of its US dealers from 6,000 this spring to around 3,600 by the end of 2010.

Ford May Top GM as Best Selling U.S. Automaker This Year for the First Time since 1930

The last time that Ford overtook General Motors as the best selling automaker in the U.S. was in 1930. But as they say, records are made to be broken. And according to industry analysts, FoMoCo may very well take the first spot this year as the 'New GM' will emerge from Chapter 11 with just four brands -Chevrolet, Cadillac, GMC and Buick. According to Autodata Corp., the four brands of the 'New GM' accounted for 16.5 percent of the U.S. market in the month of June while FoMoCo's share not including Volvo that's up for grabs, was 17.2 percent.

John Wolkonowicz, an industry analyst with IHS Global Insight, told Bloomberg News that "Ford is on a real roll right now," and that the automaker "could overtake GM this year."

"A lot of Pontiac buyers, young, blue-collar women, may not like the rest of the GM lineup," Wolkonowicz added. "They're certainly not going to buy a Buick."

But does it really matter who takes the first spot in sales? Well, it certainly makes the company's employees feel proud for their work, but that's about it. Don't forget, GM was the global leader and look where the automaker is now.

Via: Bloomberg

GM Pulls Out Camaro Youtube Videos Starring the Bumblebee Boys in Briefs

We're feeling kind of lame for missing out on the videos, but here's the story in brief - no pun intended. The USA Today reported that General Motors ordered Youtube to remove a string of videos starring the so-called "Bumblebee Boys in Briefs". The footage, which was created in conjunction with GM's recent "Chevrolet Gay Day at the Movies" Los Angeles gig for the latest Transformers film, featured a couple of boys that like boys in yellow underwear bathing a new Camaro.

General Motors spokesman Dave Barthmuss told the USA Today that "the video was not appropriate and not in good taste" adding that the firm's executives decided that the "batch of vignettes was not the way we wanted to represent the brand to the general public".

Strangely enough, and even though the videos were up on Youtube well before the June 28 event in LA, Barthmuss said that he hadn't seen the footage up until now.

Understandably, since we haven't seen the videos with the "go-go boys" and the Camaro, we can't possibly comment on the story - at least not in a serious way.

Via: USA Today

GM Receives Approval to Sell Assets to U.S Department of the Treasury

A New York judge approved the sale of most of General Motors Corporation's assets to NGMCO, Inc., an entity funded by the U.S. Department of the Treasury, on late Sunday, thus opening the way for a quick exit from Chapter 11 in less than 40 days after the company filed for court protection. Under the deal, 60.8 percent of the new GM's common stock will be owned by the U.S. government, 17.5 percent by the UAW Retiree Medical Benefits Trust, 11.7 percent by the Canadian and Ontario governments while the remaining 10 percent by the old GM.

GM said that Judge Gerber's order includes a four-day stay before closing of the sale can occur, with the automaker expecting the sale to be completed in the near future.

"The new GM's business is expected to be immediately operational and fully competitive, with an exciting line of new products, a smaller, more focused brand portfolio and the rationalization of its dealer network well underway," the automaker said in a statement adding that current GM employees will be offered positions by the new company.

Along with the closing, it was decided that the current General Motors Corporation will change its name to 'Motors Liquidation Company' with the retained assets set to 'wound down' or sold.

The new company that will be formed will be headquartered in Detroit and will be led by Fritz Henderson as president and chief executive officer and Edward E. Whitacre, Jr. as chairman of the board of directors.

"A healthy domestic auto industry remains vital to the global economy and we deeply appreciate the support the U.S., Canadian and Ontario governments and taxpayers have given GM, and the sacrifices that have been made by so many," said Henderson.

"This has been an especially challenging period, and we've had to make very difficult decisions to address some of the issues that have plagued our business for decades. Now it's our responsibility to fix this business and place the company on a clear path to success without delay."

Offbeat: Vauxhall Corsa Roller Skates

Following in the... footsteps of its sister company Opel and its Agila high-heel shoes that were shown at an event in Amsterdam last year, Vauxhall unit has presented its own take on the car-theme shoe thingy with the release of the specially commissioned, Corsa roller boots. If you're wondering why, GM's UK division is planning some sort of promotional event at London's Shoreditch area that is said to "transport" visitors to a late 20th Century vision of the future, in a 70's disco meets Knight Rider on roller skates kind of way, whatever that means.

GM gets World's Fastest Man to Drive Insignia OPC at Goodwood

General Motors' Vauxhall division announced today that World Land Speed Record holder, Andy Green, will be behind the wheel of the all-new, 325HP Insignia VXR (OPC for the rest of Europe) at this weekend's Goodwood's hillclimb course. Andy Green, a British Royal Air Force pilot, is the first and only person to break the sound barrier on land when he recorded a top speed o 763mph or 1,227km/h in 1997 driving Richard Noble's Thrust SSC (SuperSonic Car).

"The Festival of Speed is one of the highlights of my year," said Andy. "So when I was offered the chance to drive Vauxhall's new high-performance Insignia up the Hill, it was just the icing on the cake! Fast road cars are the essence of the Festival and I am really looking forward to giving the Insignia a good run up the Hill this weekend."