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China's rise, global restructuring wither GM's Korea division

An article in the Daily Kanban suggests the sun is setting on GM Korea, and it could already be well into dusk. GM Korea came about when General Motors, along with co-investors SAIC and Suzuki, bought Daewoo Motors from parent company Daewoo Group in 2001; it had a previous tie-up with GM, a joint venture that ended in 1992, although Daewoo cars were based on GM cars until 1996. Over the decade following the purchase, it became such an important part of operations that it was renamed GM Korea in 2011, "to reflect its heightened status in [the] global operations of GM." Just two years later, the printed rumors were that the subsidiary responsible for a fifth of Chevrolet's global production could be shutting down. The division's sales were down almost 21 percent through November of last year, counting domestic South Korean sales, exports, and CKD – Complete Knock Down – products. That makes the labor strife, already an issue for four years, even more acute, reports say the subsidiary will lose $36 million a year if it can't get the job and wage cuts it wants, and government concessions can't make up for the losses. And it gets worse, so head over to Daily Kanban to read the rest of the story.

Weekly Recap: The implications of strong new car sales

New car sales are on a roll in the United States this year, and analysts are optimistic the industry will maintain its torrid pace. Sales increased 1.6 percent in May and reached an eye-popping seasonally-adjusted selling rate of 17.8 million, the strongest pace since July 2005, according TrueCar research. That positions the industry for one of its strongest years ever, as consumer confidence, low interest rates, low fuel costs, and an influx of new products propel gains. In addition to the positive economic factors, May also featured warmer weather across much of the US, an extra weekend, and it came on the heels of relatively weak April sales. Analysts suggest income tax refunds and the promise of summer driving and vacations also traditionally help May sales. "While 2015 will be one of the best years in the history of the US industry, in some ways it may be the very best ever," IHS Automotive analyst Tom Libby wrote in a commentary. "Not only are new vehicle registration volumes approaching the record levels of the early 2000s, but now registrations and production capacity are much more closely aligned so the industry is much more healthy." Capacity, an indicator of the auto sector's health, is also expected to grow. Morgan Stanley predicts it will eventually hit at least 20 million units per year, as many companies, including General Motors, Ford, Tesla, and Volvo are investing in new or upgraded factories. "The best predictor of US auto sales is the growth in capacity, and frankly, we're losing count of all of the additions – there's literally something new and big every week," Morgan Stanley said in a research note. Transaction prices, another telling indicator, also continue to show strength. They rose four percent in May to $32,452 per vehicle, and incentives dropped $10 per vehicle to $2,661, TrueCar said. "New vehicle sector and segment preference indicates consumers are confident about the economy and their finances," TrueCar president John Krafcik said in a statement. Still, Morgan Stanley noted the robust sales did little to immediately impact automaker stock prices and suggested it might be a prime time to sell if sales reach the 18-million pace. "Perhaps the biggest reason may be that investors have seen this movie before," the firm wrote.

Let's Drive NYC is GM's car sharing program for the Big Apple

Under a new car sharing program offered by General Motors and others, a New York Minute will cost about 15 cents. GM is working with a luxury-apartment building owner and a parking lot operator to run a car sharing program in Midtown Manhattan. The program is called Let's Drive NYC and it was announced Thursday. Let's Drive NYC is being offered to residents of the Ritz Plaza, a 479-unit luxury apartment building near New York's Times Square. The program is being run with the help of Icon Parking Systems, which runs about 200 parking garages in Manhattan where the cars can be parked. GM is contributing eight Chevrolet Trax crossovers and two Chevrolet Equinox SUVs, and the automaker is slated to add more vehicles "later." Residents of the Ritz Plaza, which is owned by Stonehenge Partners, can make "periodic apartment lease payments" and in exchange receive electronic credits for three hours of driving a month. After those three hours are up, the drivers will be charged less than $10 an hour, or as much as $75 a day. The program was piloted earlier this year to some of the apartment's tenants. The program marks the second bit of car sharing news in New York within the past two months. In August, Mercedes-Benz and Smart parent Daimler announced that its Car2go car sharing service would expand into Queens and add about 100 Smart ForTwo two-seaters to the city's program. Car2go made its New York debut in Brooklyn last October and has attracted more than 27,000 members since then. You can take a look at Let's Drive NYC's press release below. GM Unveils 'Let's Drive NYC' Car-Sharing Program NEW YORK, Oct. 1, 2015 /PRNewswire/ -- Running an errand to a big box store or planning a weekend excursion are about to get easier for some Manhattan residents because of a car-sharing program revealed today by General Motors. It's the company's latest move to deliver urban mobility options to customers around the globe. Let's Drive NYC is available to eligible residents of The Ritz Plaza, a 479-unit luxury apartment building at Times Square in midtown Manhattan, owned and managed by Stonehenge Partners. Residents use a GM-developed mobile app to reserve a vehicle and access parking in one of 200 garages throughout Manhattan managed by Icon Parking Systems. The fleet currently includes eight Chevrolet Trax small SUVs and two Chevrolet Equinox compact SUVs, with more vehicles to be added later.