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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.

GM Recalls 218,000 Chevy Aveo Models Over Fire-Prone Lighting

The recall train keeps on rolling for General Motors. Hot on the heels of its recent 2.4 million-vehicle recall of various models, it's now calling in 218,000 Chevrolet Aveo units from the 2004-2008 model years because they could catch fire. The problem concerns the daytime running light module in the instrument panel. It could overheat, melt and cause a fire. According to GM spokesperson Alan Adler, "We are aware of some fires," and the company "is still investigating." Adler wouldn't comment about how many fires were reported or when the automaker was first aware of this issue because of the ongoing analysis. However, he said the issue has not caused any injuries or fatalities. GM also doesn't have a fix for the problem with the DRL module yet. The company says in its recall statement to the National Highway Traffic Safety Administration that the remedy "is still under development." Adler wasn't sure when it would be ready, but he said Aveo owners would receive notification in the mail "relatively soon." They will receive a second letter later to schedule the repair. In a separate letter about the Aveo's problem to NHTSA (viewable here as a PDF), GM said its Executive Field Action Decision Committee decided to conduct the recall on May 16. Scroll down for the recall report. RECALL Subject : Daytime Running Light Module Overheating Report Receipt Date: MAY 19, 2014 NHTSA Campaign Number: 14V261000 Component(s): Potential Number of Units Affected: 218,000 Manufacturer: General Motors LLC SUMMARY: General Motors is recalling certain model year 2004-2008 Chevrolet Aveo vehicles equipped with daytime running lights (DRL). In the affected vehicles, there may be heat generated within the DRL module located in the center console in the instrument panel, which could melt the DRL module. CONSEQUENCE: If the DRL module melts due to the heat generation, it could cause a vehicle fire. REMEDY: The remedy for this recall campaign is still under development. The manufacturer has not yet provided a notification schedule. Owners may contact General Motors customer service at 1-800-222-1020 (Chevrolet). General Motors recall number for this campaign is 14236. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

GM cutting Chevy Sonic, Buick Verano production [UPDATE]

UPDATE: A previous version of this story indicated that Orion Assembly would be idled for seven weeks, from February 16 through April 6. This was incorrect. The factory will instead only be idled for the weeks of February 16 and April 6. The story has been edited to reflect this. General Motors has announced that the factory responsible for the Buick Verano and Chevrolet Sonic will be idled for the weeks of February 16 and April 6, with blame being placed on excess supply. The Orion Assembly plant, about 45 minutes north of GM's Renaissance Center headquarters, employs about 1,800 people, but they'll be given a pair of furloughs as inventories of the sub-compact Sonic and premium compact Verano reach 127 days and 84 days, respectively. That works out to 26,600 Chevys and 9,800 Buicks waiting for buyers. According to Automotive News, the compact Chevy sales bested the industry average in 2014, jumping up nine percent versus the the overall segment's eight-percent gain, while the Buick sedan's sales were down four percent. When asked about the shutdown, a GM spokesman told AN that it will "build to market demand," while also pointing out that the company did not comment on production plans. News Source: Automotive News - sub. req.Image Credit: Bill Pugliano / Getty Images Plants/Manufacturing Buick Chevrolet GM buick encore orion assembly