DETROIT (Reuters) – Buyers of General Motors Co vehicles will increasingly be able to use in-car mobile broadband systems to book hotel rooms, cut deals on driver insurance, pay for data usage and conduct a host of other transactions.
And each time they do, GM will get a small cut from the seller.
When the automaker began offering 4G LTE high-speed wireless connections in some cars last year, it wasn’t clear how it would generate revenue to offset the costs of the hardware. Now, as the company prepares to expand the technology to most of its 2016 U.S. models, GM is lifting the curtain on its digital business strategy.
By Ben Klayman and Abinaya Vijayaraghavan
(Reuters) – Faulty air bags supplied by Takata Corp have been linked to another injury involving a Honda Motor Co car in Florida in March.
A 2003 model Honda Civic’s air bag exploded and a piece of metal shot out from the air bag into the driver’s neck, according to police and hospital reports.
DETROIT (Reuters) – U.S. safety regulators said they would
review a petition from a North Carolina consumer group that
sought further investigation into a potential loss of vehicle
headlights or all exterior lighting in almost 518,000 Ford Motor
Co large sedans in the United States.
The North Carolina Consumers Council asked officials at the
National Highway Traffic Safety Administration to open a probe
into 517,945 Ford Crown Victoria and Mercury Grand Marquis
sedans from model years 2003 through 2005, according to recent
documents filed with NHTSA.
DETROIT, April 1 (Reuters) – Ford Motor Co’s Americas
chief indicated on Wednesday that the No. 2 U.S. automaker will
be looking to bring its labor costs in line with those of its
smaller rival Fiat Chrysler Automobiles when
it opens talks this summer with the union representing its
Joe Hinrichs, speaking at a Bank of America Merrill Lynch
conference, said the subject of entry-level workers, who are
paid less than their veteran co-workers, will be a subject of
talks with the United Auto Workers. Ford, Fiat Chrysler and
General Motors Co will negotiate new deals to replace
ones expiring in mid-September.
DETROIT (Reuters) – The driver was to blame in the fiery crash of a Porsche sports car that killed actor Paul Walker in California in 2013, not design defects with the car, attorneys for the German automaker said this week.
Walker was a passenger in a 2005 Porsche Carrera GT driven by Roger Rodas, who lost control of the vehicle before it careened into trees and a utility pole in Santa Clarita, northwest of Los Angeles, killing both men.
DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) will generate $350 million in improved profit over the three years to 2018 from its rollout of 4G LTE mobile broadband in its cars and trucks, the No. 1 U.S. automaker’s chief financial officer said on Wednesday.
Chuck Stevens, speaking at a Bank of America Merrill Lynch conference, called GM’s OnStar 4G LTE connection an “untapped, under-appreciated opportunity.”
DETROIT (Reuters) – The Chevrolet Malibu has been a symbol of General Motors Co’s (GM.N: Quote, Profile, Research, Stock Buzz) competitive woes for nearly 20 years due to designs that critics often lambasted as boring. Now, the No. 1 U.S. automaker is telling suppliers a redesigned version of the midsize sedan will deliver a long-awaited sales jolt.
GM executives have told suppliers to prepare for sales in North America of 250,000 new Malibus a year, 25 percent above last year’s levels, and have the ability to go as high as 300,000 cars a year, according to three supplier sources familiar with the plans.
DETROIT (Reuters) – The Federal Reserve should remain on track to raise interest rates later this year despite the U.S. economy’s weak start to the year and a stock market sell-off this week, two Fed officials said on Thursday.
In separate events in Frankfurt and Detroit, St. Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart said U.S. monetary policy might need to be adjusted in light of the economy’s steady improvement since the 2007-2009 financial crisis.
MEXICO CITY/DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) will build its next-generation Chevrolet Cruze small car in Mexico, the company said on Monday, as automakers look to expand there to take advantage of low labor costs and free trade agreements. GM will invest $350 million to produce the Cruze at its plant in Coahuila, as part of the $5 billion investment in its Mexican plants announced last year.
GM also said it will continue manufacturing the model at its factory in Lordstown, Ohio. GM so far has identified only three plants globally that will make the next-generation Cruze, including in China.
DETROIT (Reuters) – General Motors Co’s (GM.N: Quote, Profile, Research, Stock Buzz) decision this week to give back up to $10 billion to shareholders over the next two years will likely delay one of its important goals: achieving a top-tier credit rating that would benefit its growing auto finance unit.
The No. 1 U.S. automaker has been building its GM Financial unit through acquisitions and more aggressive marketing to dealers. Automakers use in-house lenders to offer discounted financing on new cars and trucks for consumers and dealers. Reaching a single A credit rating would give GM greater flexibility to fund GM Financial at lower cost.