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GM program sees dealers taking on way more loaner cars

Given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. Bring your car into the dealership for service, and you may need a loaner car in exchange. And with so many recalls being carried out, that means a lot of loaners – especially at General Motors dealerships. That could be one of the reasons why GM is massively expanding its loaner fleet program. While many Chevrolet and Buick-GMC dealerships have an on-site rental car location operated by a third party like Enterprise (which may or may not provide a GM vehicle), others manage their own loaner fleets. But while the range of dealerships operating such fleets was once small, reports Automotive News, the number has been growing rapidly: from the locations responsible for only 20 percent of those brands' sales two years ago to about 90 percent today. The impetus for that growth comes down to a massive expansion of GM's Courtesy Transportation Program. The initiative encourages dealers to ramp up their loaner fleet to a maximum size determined by GM, with a mix determined by the dealer itself, so that a showroom in Texas can be bolstered with a fleet of pickup trucks and a dealer in California can employ more Volt and Camaro Convertible loaners. The dealership gets a $500 credit for each vehicle its puts in its fleet, and can use those vehicles as loaners for service customers, as multi-day test drivers or to rent out separately. The vehicles remain in the dealer's fleet for 90 days or 7,500 miles, then they can be sold as used, but with new-car incentives. The dealer gets a fleet of loaners, customers get to use the loaners, try out a new car overnight or buy a barely used car with attractive incentives, and GM gets to clock more sales. But therein lies the kicker: the automaker counts the dispatch of the loaner new vehicle to the dealership as a new-car sale, which could end up distorting its sales figures. Counting loaner vehicles as sold vehicles is something of an industry-standard practice, but given the volume of vehicles we're talking about, this is a significant development for GM's bottom line. One dealership - Paddock Chevrolet in Kenmore, NY, for example - had no loaner fleet two years ago, but now runs a fleet of 50 vehicles. Multiply that by the 4,000 or so dealers GM has across America and you're talking about the potential for hundreds of thousands of these sorts of sales.

The Army goes off-roading with a hydrogen Chevy Colorado

The Chevrolet Colorado is joining the service. General Motors is working with the US Army Tank Automotive Research, Development & Engineering Center (TARDEC) to build a Colorado powered by a commercial hydrogen fuel cell stack, and the Army will use it in "extremes of daily military use for 12 months." TARDEC is the department that tests "advanced military automotive technology" and integrates them into ground systems. The aim is to see how well the benefits of a fuel cell vehicle can be adapted to the battlefield; hydrogen-powered vehicles are quiet, torquey, produce water, and can be used to provide electricity in the field. GM says the design sketch above "foreshadows" the Colorado that will go to boot camp and beyond, making it clear that this won't be the average midsize pickup. The press release below has more. Related Video: GM and U.S. Army to Demonstrate Extreme Off-Road Hydrogen Fuel Cell Chevrolet Colorado Agreement focused on proving unique utility and viability of fuel cell propulsion WARREN, Mich. 2015-11-19 – General Motors and the U.S. Army Tank Automotive Research, Development & Engineering Center (TARDEC) are modifying a Chevrolet Colorado midsize pickup truck to run on a commercial hydrogen fuel cell propulsion system and will expose the truck to the extremes of daily military use for 12 months. "Hydrogen fuel cell technology is important to GM's advanced propulsion portfolio, and this enables us to put our technology to the test in a vehicle that will face punishing military duty cycles," said Charlie Freese, executive director of GM's Global Fuel Cell Engineering activities. Fuel cell propulsion has very high low-end torque capability useful in off-road environments. It also offers exportable electric power and quiet operation, attractive characteristics to both commercial and military use. "The potential capabilities hydrogen fuel cell vehicles can bring to the Warfighter are extraordinary, and our engineers and scientists are excited about the opportunity to exercise the limits of this demonstrator," said TARDEC Director Paul Rogers. "FCVs are very quiet vehicles, which scouts, special operators and other specialties place a premium," he said. "What's more, fuel cells generate water as a by-product, something extremely valuable in austere environments." GM and TARDEC have fuel cell development and research facilities located 20 minutes apart in Pontiac and Warren, Mich.

General Motors shaking up its marketing... again

One of the things that dogs the full comeback of General Motors is the instability of its marketing. That part of the automaker got yet another big shakeup today when GM confirmed what I have been tweeting for a few days - strong rumors that the Chevrolet and Cadillac ad accounts are walking to new ad agencies.
Cadillac, GM's luxury brand, is going into review from Fallon Worldwide, Minneapolis and the indications are that Campbell-Ewald, Chevy's old ad shop, will end up with most or all of it. C-E just announced that it was moving from its long-time home in Warren, MI to a new downtown Detroit office next to Ford Field, just blocks from GM.
The other shoe to drop shortly will be the shift of GM's most important brand, Chevy, from Goodby, Silverstein & Partners of San Francisco to McCann-Erickson of Troy, MI. McCann used to be the agency for Buick and GMC, as well as GM's corporate advertising, and has retained some pieces of business over the last few years. Sources have even told us that it was McCann that did a lot of the creative work on Chevy's new ad platform, Find New Roads. (Not to be confused with a former McCann tagline for Saab, "Find Your Own Road.")