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GM plans to restart production in Mexico on May 20

MEXICO CITY — General Motors is tentatively planning to restart operations at its auto assembly plant in the Mexican city of Silao on May 20, according to a message to workers seen by Reuters on Sunday, as the car industry prepares to exit the coronavirus lockdown. Separately, the president of GM's Mexican unit advised suppliers to prepare to resume operations. “We are now beginning a new phase given the Mexican governmentÂ’s official announcement earlier this week to consider the transportation manufacturing industry as essential for the countryÂ’s economy,” Francisco Garza, president ofGeneral Motors de Mexico, wrote in an email to suppliers dated on Friday that was viewed by Reuters. The reopening of the plant  in Silao would be a positive signal for the auto sector in North America, whose supply lines are highly interconnected between the United States, Mexico and Canada. The plant in the central state of Guanajuato has been idled for weeks due to the coronavirus outbreak. Workers had previously been told to plan to return to their jobs on May 18. A GM spokeswoman said the company could not confirm when it would restart operations at any of its facilities in Mexico because it is awaiting more guidance from the government. The message to the plant's workers came after the government on Friday clarified when the industry could begin easing restrictions imposed because of the health emergency. On Wednesday, the government said automakers could start going back into production from May 18. It then withdrew that advice and suggested the new start date would be June 1. Finally it indicated the sector, which forms the backbone of Mexican manufacturing, could begin operating as soon as next week if companies had the required safety measures in place. U.S. officials and its auto industry have pressed Mexico's government to get its factories open again because American operations depend heavily on parts from south of the border. However, some politicians are wary of opening too fast. Mexico registered its first case of coronavirus weeks after the United States and Canada and the toll of daily infections and deaths in the country reached new peaks over the past few days. The Silao production facility, which makes highly profitable pickup trucks for GM, is one of the biggest automotive plants in Guanajuato, a major Mexican carmaking state. Related Video:

Nissan Leaf makes it 19 in a row for record sales; Chevy Volt drops 21 percent

The Nissan Leaf continues its streak of "best month ever" sales with 2,881 EVs sold in September. Compared to the 1,953 sold in September 2013, that represents an increase of 47.5 percent and, as Nissan itself must be tired of saying by now, it marks yet another best month ever, same as last month and now the 19th in a row. Okay, sure, we know, Nissan will tout this run for as long as it can, but we're certainly expecting it each month, so if it ever doesn't happen, it'll be interesting to see how Nissan talks about it. Year-to-date, Leaf sales are up 35.7 percent compared to 2013. In any case, Nissan's director of EV marketing, Toby Perry, sent AutoblogGreen a statement that said, "Nissan Leaf owners have turned into some of our best marketers, and they jump at any opportunity to share their enthusiasm with friends and family. Take National Drive Electric Week – a grassroots celebration of all things EV and the perfect platform for LEAF owners to showcase the benefits of going electric. After celebrating with EV owners in more than 130 cities across the country, we saw a significant increase in Leaf showroom visits with midweek traffic just as heavy as what we see on the weekends." Year-to-date, Leaf sales are up 35.7 percent compared to 2013. Over on the Chevy Volt front, things aren't quite as rosy. After coming off a good August (the best sales month of 2014 by almost 500 units), Volt sales were down to 1,394, a decrease of 21.1 percent compared to September 2013. So far this year, Volt sales are down 13.2 percent year-over-year. It's kind of a stretch, but perhaps people are already waiting for the next-gen Volt, which will be revealed at the Detroit Auto Show in January, to go on sale? Speaking of things we say every month, our in-depth round-up of US green car sales is in process and will be appearing soon. Until then, please discuss how these two long-standing plug-in champs are doing on the sales floor. Green Chevrolet Nissan Electric Hybrid PHEV ev sales hybrid sales

GM won't pay owners of recalled cars for lost value

Kenneth Feinberg, the man in charge of the General Motors compensation fund dealing with the its widespread ignition switch woes, has issued an informal, two-letter response to the plaintiffs in more than 70 lawsuits seeking redress for lost resale value of their Cobalts: "No." The cases were recently combined into one, but Feinberg told The Detroit News that the fund will deal "only with death and physical injury claims," and that "perceived diminished value" will get no consideration.
ALG, the firm specializing in establishing residual values, determined that Cobalt owners had lost $300 compared to the segment competition and doesn't envision any long-term effects from the recall situation. Feinberg's statement comes in advance of public details on how the compensation fund will work and adheres to GM's long-held position on the matter. The company has already asked a judge to throw out such suits using the pre-bankruptcy defense, even as it stopped using that defense in cases of injury and death.
With plenty of potential gain from the GM suit, however, don't expect the plaintiffs to give up yet. When Toyota was sued for the same reason during the unintended acceleration debacle, it eventually settled the case for between $1 billion and $1.4 billion just to get it over with. Since the 85 law firms involved in the Toyota litigation took home more than $250 million of that total, we shouldn't expect the attorneys to give up on a GM payout, either.