Power

One engine and transmission combination is offered with the GMC Acadia Denali. A 3.6-liter (219 cubic inches) V-6 double overhead cam engine with variable valve technology is paired with a 6-speed automatic overdrive transmission. This engine is rated at 288 horsepower @ 6,300 revolutions per minutes and 270 lb.-ft. of torque at 3,400 rpm. Featuring an 11 to 3 compression ratio, the Denali engine has a bore and stroke of 3.70 and 3.37 inches, respectively. The EPA rates this engine at 17 miles to the gallon highway, 24 mpg city in FWD or 16 mpg city, 23 mpg highway in AWD. This vehicle has a 22.0 gallon fuel tank and uses regular unleaded gasoline.

Dimensions

Classified as a full-size SUV, the Acadia Denali is 200.7 inches long and sits on a 118.9 inch wheelbase. The Denali is 69.9 inches tall, 78.2 inches wide and has a 7.4 inch ground clearance. This vehicle offers 154.0 cubic feet of passenger volume and 24.1 cubic feet of standard cargo volume, expandable to 116.9 cubic feet. The base curb weight is 4,656 (FWD) to 4,857 (AWD) lbs. This vehicle can pull up to 5,200 lbs. and has a gross vehicle weight rating of 6,459 lbs.

Tires and Wheels

Standard wheel size is 18 inches and every base front-wheel-drive Denali is equipped with P255/65R18 tires and a compact spare. Optional tire sizes include 255/60R19, 255/55R20 and 265/40-22. The front suspension features coil over strut with an anti-roll bar; the rear has a multi-link independent suspension. Gas-pressurized shocks are on all four corners of the vehicle. The Denali comes equipped with rack and pinion steering, 4-wheel disc brakes, anti-lock brakes, traction control, stability control and an airbag system that includes side curtain airbags.

Cabin Amenities

As the fifth and highest trim level of the Acadia, the Denali line comes well equipped with numerous amenities. These include: tri-zone climate control, a navigation system with rear backup camera, SiriusXM satellite radio, head up display, an 8-way power driver’s seat with memory, a Bose premium 10-speaker system and leather appointments. Optionally, an upgraded audio system and a rear entertainment system is available.

Among the Denali’s competitors are the Toyota Highlander and the Honda Pilot. Similarly, the Buick Enclave can be compared, a vehicle that is also sold by Buick-GMC dealers.

References

Auto Trends Magazine; Weekly Drive: 2012 GMC Acadia Denali (FWD)

GM: 2012 GMC Acadia Denali

Photo: General Motors Company

Ally Financial

GMAC, once a wholly-owned GM entity and, later, partly owned by Cerberus Capital Management and GM, was cut loose as part of GM’s reorganization under its bankruptcy terms with the federal government. GM still deals with GMAC–recently renamed Ally Financial–for the bulk of its car loans and leasing, but people who are deemed sub-prime borrowers aren’t eligible for loans by Ally.

Ally Financial has chosen a much more conservative path for auto loans, not wanting to put itself in the same position it found itself several years ago when the default rate on car loans surged as the economy tumbled.

AmeriCredit Purchased

GM has solved its problem by announcing an agreement to purchase AmeriCredit, one of the largest independent auto financing companies out there. For $3.5 billion, GM will gain the services of a company whose lending practices are more liberal than Ally Financial, quite possibly helping GM increase its sales along the way. The deal is expected to close before the end of 2010.

For GM, acquiring AmeriCredit seems to have been something the automaker has wanted to do ever since losing its share of GMAC.  Most automakers have a captive financing company–owned and controlled by the car manufacturer in order to supply financing to its customers–with GM being at a disadvantage for much of the past year.

News Conference

At a news conference this past Friday, GM Chairman and Chief Executive Officer, Ed Whitacre said, “This acquisition supports our efforts to design, build and sell the world’s best vehicles by expanding the financing options we can offer to consumers who want to buy GM vehicles. Adding AmeriCredit to our team will improve our competitiveness in auto financing offerings, and I am very pleased to have them on board.”

Said GM Vice Chairman and Chief Financial Officer, Chris Liddell, “With AmeriCredit providing us niche capabilities in leasing and non-prime financing, along with the continued strong support of Ally Financial and others for prime retail and dealer financing, we’ve set up a very competitive solution for our financing needs, which will be resilient through credit and business cycles.”

Pending Approval

The deal must still be approved by federal regulators and by AmeriCredit shareholders who will receive $24.50 in cash for each share of stock held as of the transaction closing date. Under GM ownership, AmeriCredit will maintain its own direct access to the capital markets for its financing requirements.

Source: General Motors

Ritual disembowelment is an ancient Japanese rite once practiced by samurai warriors.

You may not hear anyone make the audacious claim that the Toyota Motor Corporation is in its twilight years despite recording a multi-billion dollar loss at the end of its last fiscal year, or because the automaker is currently embroiled in an engineering and publicity nightmare involving faulty accelerator pedals. That latter problem has led to Toyota pulling eight of its top-selling models from the market until a fix can be found.

Ritual Sacrifice

But you have to wonder what is really going on behind closed boardroom doors in Tokyo as well as in the company’s Torrance, California sales headquarters. My wild imagination sometimes gets the best of me when I observe desperate scenes like the one now unfolding.

To wit, I can envision a Tokyo to Torrance teleconference call taking place with a deeply remorseful Japanese engineer sitting cross-legged nearby ready to participate in a ritual disembowelment (obligatory seppuku) in a bid to atone for his part in the fatal engineering flaw.

As horrified American executives look on from the other side of the Pacific, a stone-faced Japanese manager gives his nod and the bloody deed is quickly carried out. The screen soon fades as the second part–the customary follow up beheading by a skilled swordsmen–completes the ritual, sweeping away Toyota’s shame and the engineer’s head.

Like I said, I do have a vivid imagination.

Dagger Prepared

Even so, a certain dagger is now being prepared by Toyota’s chief rival, GM, who sees a window of opportunity in the midst of someone else’s misfortune. That dagger comes in the form of its move to poach scared Toyota and Lexus owners by offering them a $1000 cash incentive and low interest rate financing to switch to a GM brand.

“We decided to make this offer after receiving many e-mails and calls from our dealers, who have been approached by Toyota customers asking for help,” GM said in a statement. GM’s offer will run through February 28.

Customers can apply the incentive to pay off their Toyota or Lexus leases while enjoying zero percent financing on most 2009 and 2010 models. While it may seem that GM is delivering a fresh kick to Toyota, conquest incentives are routinely practiced in the ultra-competitive American marketplace particularly when it comes to the sale of new cars.

Ford Follows

Following GM’s announcement early Wednesday afternoon, the Ford Motor Company matched GM’s incentive and extended it to include all Toyota, Lexus, and Scion owners. Further, Ford included Honda and Acura owners with their strategy.

Do not think for a moment that other automakers are not lining up to take their own jabs at Toyota. According to The New York Times, one Honda dealership near Dallas changed their electrical sign to read, “Our gas pedals don’t stick!” in a bid to siphon off worried Lexus and Toyota owners.

Break out the paring knives!

Photo Credit: Wikipedia file photo

Meeting with reporters yesterday in Detroit, Whitacre acknowledged that the company has several obstacles to overcome, but he believes that the current GM management team is up to the task, thus his bold promise of profitability. Whitacre’s statement follows an earlier promise that GM would repay $6.5 billion in government loans by this summer.

The federal government and the governments of Canada and Ontario also have a financial stake in the automaker, monies which may be recouped once GM issues stock again. Current GM stock is worthless, but the automaker has promised to issue new stock once the company returns to profitability.

But it is those obstacles which could keep GM from making its desired profit. Indeed, GM is far from being assured of its future despite taxpayer help. Sales were down by 30 percent last year and customers are looking elsewhere including Hyundai.

The following are some of the obstacles that need to be moved out of the way, preferably beginning this quarter:

• Dead wood – Saturn and Pontiac are expected to close down within weeks, freeing GM from two of four brands which are being swept away. Sichuan Tengzhong Heavy Industrial Machinery Co. of China is expected to close on Hummer this quarter, while GM remains adamant that Saab will be shut down if Spyker or some other bidder doesn’t come through within days.

• Opel and Vauxhall – Opel and its clone brand, Vauxhall, represent the vast majority of GM Europe. GM reversed course in November, deciding to keep its German based brand. But Opel needs money and lots of it, something GM cannot offer to it. Remember the name Klauz Franz as this guy is Opel’s labor chief, an influential man who may be able to help GM secure $4.5 billion in loans from the German government. With a steep price to pay too.

• Brand repair – Of the four remaining GM brands in the US—Chevrolet, GMC, Buick, and Cadillac—only Chevy is healthy enough right now. Pontiac may be gone, but that brand was one of the legs in the three-legged Buick-Pontiac-GMC dealership stool. The upcoming Buick Regal will woo some Pontiac buyers, but that brand doesn’t have enough models to attract and retain customers. GMC will still appeal to people who might otherwise consider Chevy Trucks, while Cadillac needs to expand the CTS success story across its product line.

• Customer perception – GM may finally be understanding that a lot of customers are still mad at it and for a number of very good reasons. Hefty government bail out. Poor quality models. Abandoned brands. Management inefficiency. Winning back what has been lost is critical to gaining market share. An increased market share based on a formula of selling better contented and more desirable vehicles (Chevrolet Cruze) is essential. Forget the Volt, the Chevy Cruze is GM’s make or break model for 2010.

There are enough other factors beyond GM’s control which could scuttle its recovery, but I won’t touch on those.

Is Whitacre blowing smoke? Perhaps. But with the NAIAS set to start next week, the proof will be in the new product introductions which are expected to include an all new Cadillac model.

New Products

Though GM hasn’t named specific models slated for its accelerated production cycle, I believe that the following represents the company’s strategy going forward brand by brand:

Cadillac – The CTS line is almost complete, giving Cadillac a world class mid-size car line that competes nicely against BMW, Mercedes, and Lexus. Next up is the replacement for the STS and DTS, which GM has code-named XTS. Ideally, GM would stretch the current CTS sedan to accommodate the model, buying it some time and saving money until a fresh model could be released in 2015. But I don’t see that happening. Instead, expect some sort of front wheel drive sedan arriving in 2012.

Expect the Converj to arrive in 2012, a car based on the Chevy Volt platform. The SRX is all new while the Escalade is tired and in need of a crossover body ala Buick Enclave. Expect that to happen soon after the XTS hits the market. Beyond that, if Cadillac gains traction, the line will expand with a car slotted below the CTS and perhaps a luxury two seater. Hybrids will be offered fleet-wide by 2015.

Buick – The Lucerne is on its last legs which means that the LaCrosse will take over as the largest car in Buick’s line. I expect that we’ll see a refreshed Enclave for the 2012 model year, while a baby Buick, smaller than the Regal, will appear about the same time.

My thinking is that GM will clarify Buick’s direction by adding fresh new models once the baby Buick hits the market.

Chevrolet – We know the Malibu is being moved up but what about the aged Impala? I can’t see GM backing off in the police pursuit vehicle market, not with Ford relying on the all new Taurus and with Carbon Motors set to come out with their dedicated police cruiser in 2012. Look for an all new Impala in two years, perhaps based on a stretched Malibu platform to complement the Holden Chevy Caprice import which will be sold in low numbers.

The remainder of Chevrolet’s line up is solid with the compact Chevy Cruze ready to appear next summer and with a smaller, Beat-type car to follow. A new Aveo or Aveo replacement will show up within the next two years, while the HHR will be dropped and several truck and SUV models will be modified. I see Chevrolet relying a lot more on crossovers like the Traverse and Equinox, perhaps dropping the Tahoe and/or Suburban if they present a drag on fuel economy numbers and customer interest wanes.

Finally, can we expect a new Corvette soon? Yes, by 2012 the C7 ‘Vette should be in showrooms, parked next to the extended Camaro family.

GMC – Whatever GM does for Chevrolet trucks will be done for GMC. It remains a mystery to me why these two brands are still competing. Personally, I would have converted GMC into Chevrolet Trucks and kept Pontiac. Then again, Fritz never asked me. R.I.P. Pontiac G8.

Financial Position

Much of what is being considered depends on GM’s financial position, gas prices, demand for alternate vehicles, and any number of other market changes that will occur over the next 3-5 years. GM has been given a huge second chance that no business of its size has ever received, so let’s hope that top management gets it right and remakes the automaker into a profitable money-making entity once again.

Plus, I want GM to pay back its loans and for the federal government to recoup the $50+ billion of taxpayer money sunk into the company and now treated as equity. I don’t think that is too much to ask!

Opel Stays

As if this story isn’t dramatic enough – Hummer and Saab are being sold while Pontiac and Saturn face closure — GM has suddenly reversed course and decided to keep its Opel unit, its principal European brand. That move comes as the automaker admits two things: 1) the attempted sale of Opel to Magna International and a Russian enterprise has been a huge headache; and 2) the company’s US commercial activity now appears to have been stabilized allowing GM to focus its attention on other markets.

Behind the scenes – but certainly not acting invisibly – German Chancellor Angela Merkel had been working to finalize the sale of Opel, promising to extend billions of dollars in loans to the company in a bid to preserve jobs in her country. That move set off a battle in other European countries where Opel/Vauxhall plants are located since it appeared likely that some of those factories would be closed down as the new owners realigned production capacity with customer demand.

The European Union eventually stepped in, effectively requiring Germany to state that funding for Opel would have been provided regardless of who bought the company. In the meantime, GM renegotiated the deal to retain a 35% stake in Opel, signaling that it wasn’t about to let go of the company entirely.

Global Sales

Even as its US operations have been in shambles, GM has enjoyed unparalleled success in China which suddenly became GM’s largest market this past summer, with more cars sold there than in the US. Sales in other markets including Asia, Australia and most of the rest of the Americas have also held up, demonstrating to GM management that better days are on the horizon.

Perhaps coincidentally, GM also realized a month over month sales gain for its US operation in October 2009. Sales climbed by 4.7%, representing the first monthly increase since January 2008. True, October 2008 was the first full month of car sales following the stock market collapse of mid-September 2008, but GM did manage to improve its position by beating out key rivals including Ford, Chrysler, Toyota and Honda.

Story Unfolds

We’ll probably get a clearer picture of where GM is headed in the coming weeks, if not days as the company details its strategy. Might the Opel reversal translate into a stay of execution for Pontiac or Saturn? That’s doubtful, because it appears GM is holding onto those brands it really wants to nurture as it surveys the rapidly changing global market and plans its business strategy accordingly.

Buick LaCrosse Web Debut

This past June, GM rolled out its all new Buick LaCrosse online, a highly unusual and until then a unique way to present a new car to members of the media. I followed the release by watching the unveiling online while also exchanging Twitter tweets with other interested parties. Some of GM’s brass also were twittering including Susan Docherty who was Buick’s general manager at the time. Incidentally, Docherty was recently promoted and is now the new US Sales Chief and member of GM’s executive committee.

Ford is very active too, most recently having been behind the Fiesta Movement for many months now in a bid to raise awareness for the upcoming release of its new to North America subcompact. Most recently, the automaker launched “Fusion 41” a campaign to promote the Ford Fusion. The “41” designation comes from the Fusion Hybrid’s city mileage (it gets 36 mpg on the highway).

Your 2010 Ford Fusion

The Fusion 41 campaign is open to current 2010 Fusion owners, both hybrid and gas models. What Ford wants participants to do is to get four of their friends to join with them to form a team. If chosen, that team will compete with seven other teams in what Ford says will be a unique relay race.

To qualify, Ford Fusion owners must take a picture of themselves with their team sitting in the owner’s 2010 Fusion (after all, the Fusion does seat five adults). Then, applicants will need to go to their Facebook page to temporarily make it public and upload the photo to their Facebook page. Next, owners will need to tag everyone in the picture, and add “Fusion 41″ to the caption. All entries must be received before the clock strikes midnight on November 6, 2009.

Bizarro World?!

If all of this sounds complicated or even somewhat bizarre then you may have a point. However, research has shown that social media sites are increasingly one of the best ways to reach out to consumers.

Before the Fusion 41 program was developed, Ford expanded its presence on Facebook with a new application for its “Fusion + Hybrid” profile called “You Speak Green” that enables visitors to share their sustainable lifestyle suggestions.  The result? Since its launch in mid-July, more than 104,000 Facebook users have downloaded the application to their profile pages and 15,000 have posted tips.

So, let’s get with the program – social media is shaping the way that businesses promote their products as millions of people flock to these sites on a daily basis. Contests like Fusion 41 create a heck of a lot of buzz, a new way for spreading the word via the power of the world wide web.

Source: Ford Motor Company

In September, GM rolled out TV ads featuring Chairman Ed Whitacre touting the automaker’s 60-day customer satisfaction guarantee. That arrangement, which continues through November, allows Cadillac, Buick, GMC and Chevrolet buyers to return their vehicles within the alloted time frame to get their money back, a scheme developed to convince understandably nervous buyers to go ahead with their purchases.

Well, the program got off to a slow start when the PR folks decided that Ed “I don’t know anything about cars” Whitacre – outfitted with a dark suit and red tie — was the go-to guy needed to sway shoppers. Clearly, the dry Whitacre is no Lee Iacocca — the flamboyant head of the old Chrysler Corporation who somehow convinced us to buy millions of Dodge Reliant “K” or Plymouth Aries “K” boxes — nor can he rival the dashing Ricardo Montalban who made us want to consider buying a Chrysler Cordoba.

Unfortunately for GM, Montalban is dead and Iacocca turned 85 yesterday. Still, maybe Lee could be tapped as a consultant!

Since the Whitacre program rolled out, more than 150,000 people have bought a new Cadillac, Buick, Chevrolet or GMC vehicle. However, out of that number only about one hundred buyers opted to join the money-back program. The reason? GM dangled an extra $500 in front of them if they opted out.

To date, just one person has returned a vehicle under GM’s money back program. You can bet that he or she had to jump through some hoops to return their ride.

The GM money back plan is filled with rules and restrictions which would make it difficult for most people to return their cars without suffering financial loss. For instance, buyers of new 2009 and 2010 vehicles cannot return them before the 31st day of ownership. And the car cannot have more than 4000 miles on the odometer nor can it have more than $200 damage – you’ll pay more than that to fix a scratch.

What is more, buyers who want to return their car are also on the hook for rebates cashed, discounts received and sales tax paid. Any other expenses incurred with the purchase including licensing, tags, registration and more are not covered either. Businesses and lease deals are excluded too.

Lastly, per GM’s return instructions, “The customer will need to return the vehicle to the original selling/participating dealer. In addition, the customer will need to contact the administrator of the program and submit required documentation. Once the administrator has reviewed and verified the documentation requirement, the customer will be contacted to take the vehicle to the selling dealer to have the vehicle appraised.”

Clearly, the deck is stacked against the buyer who would have done better to take the $500 up front or moved on to a competing brand.

What is the next gimmick? You’ll have to visit the Cadillac CTS-V Challenge website to find out!

New Models, Poor Sales

Unlike Chrysler, which has really nothing new to bring to the market, GM quickly rolled out the Buick LaCrosse and Chevrolet Equinox and soon followed those new models up with the GMC Terrain, Cadillac SRX and the Cadillac CTS Wagon. Like Chrysler, GM can’t get unstuck from its sales doldrums, putting up some of the worst numbers in September while competitors such as Ford, Hyundai, Volkswagen and Kia gained market share.

GM has no time to waste and much to lose if the company’s overhaul doesn’t continue at a fevered pace. Saturn will be joining Pontiac in the automotive branding graveyard by 2010 while Opel, Saab and Hummer will be sold off. That means Chevrolet, Cadillac, Buick and GMC have to perform well otherwise GM’s days as an automaker will be numbered.

90 Days Later

Yesterday, GM reviewed the 90 days from bankruptcy to present, with an eye toward the future. To that end, the automaker offered the following tidbits about where they’re heading:

Chevrolet Volt – One year away from production, GM has put its reputation on it lithium-ion powered commuter car. Volume is likely to be low and the Volt will follow behind the Cruze, a compact model that will replace the Cobalt next spring. Still, GM has to get this car right because they’ve told everyone how important the Volt is to the company.

Dealer Consolidation – Now that Saturn dealers have learned that their brand is set to expire, GM will have to unwind stand alone Pontiac and Saturn dealerships at the same time. When all is said and done, the automaker expects to have a much leaner sales network in place across the USA.

Job Trimming – GM continues to reduce its workforce, trimming white and blue collared workers alike. Mark LaNeve, the mind behind Cadillac’s renaissance has left the company, while thousands of factory and office workers have been let go over the past year.

International Business – While sales continue to sputter in North America, China has proven to be a remarkable market for GM. The US is still the largest market for GM products, but China is quickly closing in.

Of course, the unspoken elephant in the room for GM is customer dissatisfaction, not necessarily with its product line, rather an underlying disgust among some that tens of billions of dollars of taxpayer money is being used to prop up an automaker who is effectively under government control. Until GM can stand on its own – that is, make a profit and start paying back the money that it owes, the two letters will represent Government Motors.

Perception isn’t always reality but in this case it is.

Recently, the company logged its 500th patent, which is quite a feat for a young business. At present, the company has five and one half million active subscribers in the US and Canada, who are owners of current GM products including Cadillac, Buick, GMC and Chevrolet.

Nipping OnStar Rumors Online

Earlier today, Chet Huber, who is OnStar’s outgoing manager, said that OnStar is not for sale, quashing rumors which have surfaced from time to time. OnStar is probably one of GM’s most prized assets, a money maker and image booster that is the envy of other manufacturers. Even as Toyota, Ford and some other rivals bring to market their own in-vehicle communication systems, OnStar continues to evolve in order to stay a step ahead of its competitors.

Huber will be stepping down on October 1st and will be replaced by Walt Dorfstatter. The two executives played host to an online chat earlier this morning where it was revealed that new features may be added including text messaging as well as traffic information. GM owners who have XM radio can already get traffic information, but OnStar would close that gap.

Working With GM Rivals

In addition to the technological enhancements, OnStar may soon become available in some form to other car manufacturers. OnStar had previously worked with Lexus, Audi, Isuzu and others, but those arrangements have come to an end.

Perhaps the biggest news for OnStar is that the technology will soon come online in a third country – China. Beginning this December, OnStar will become active in GM’s fastest growing market, giving Chinese consumers one more reason to consider Buick, Chevrolet and other GM Chinese models when purchasing a new car.

Source: OnStar