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Opel pulls out of Russia, GM to focus on Cadillac, 'iconic' Chevys

General Motors is going to realign its priorities in the struggling Russian marketplace, withdrawing its Opel brand and pulling out mainstream Chevrolet models. Instead, the General will take aim at Russia's well-established oligarchy, pushing Cadillac as well as "iconic" Chevrolet models, like the Corvette, Camaro and Tahoe. "This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate," GM president Dan Ammann said in a statement. "This decision avoids significant investment into a market that has very challenging long-term prospects." Russian customers interested in an Opel or mainstream Chevys like the Spark, Aveo (the US market Sonic), Cobalt (shown above), Cruze, Orlando and the like have until December to snap up a car before the brands are pulled. "We do not have the appropriate localization level for important vehicles built in Russia and the market environment does not justify a major investment to further localize." Opel Group CEO Karl-Thomas Neumann said. GM will continue to offer service to customers in Russia. "We can assure our customers that we will continue to provide warranty, parts and services for their Chevrolet and Opel vehicles," Neumann said. Beyond realigning its brands in Russia, GM also announced that it would also be idling the company's factory in the country's second-largest city, St. Petersburg. This is the second time the St. Petersburg factory has been in the news – GM announced that it'd be idled for roughly two months back in February. Scroll down for the official press release from GM. GM to Change Business Model in Russia 2015-03-18 Focus on Cadillac and iconic Chevrolet vehicles Wind down Opel brand and sale of mainstream Chevrolet cars Idle GM Auto manufacturing facility in St. Petersburg Part of GM's strategy to ensure long-term sustainability in global markets DETROIT – General Motors today announced plans to change its business model in Russia. GM will focus on the premium segment of the Russian market with Cadillac and U.S.-built iconic Chevrolet products such as the Corvette, Camaro and Tahoe. The Chevrolet brand will minimize its presence in Russia and the Opel brand will leave the market by December 2015. "This change in our business model in Russia is part of our global strategy to ensure long-term sustainability in markets where we operate," said GM President Dan Ammann.

2016 Green Truck of the Year, Commercial Green Car of the Year finalists

Not only are commercial-grade haulers getting more green love lately, they're getting more different kinds of green love. The 2016 Green Truck of the Year, the second time the award has been handed out, is being decided by judges from Green Car Journal and the San Antonio Auto & Truck Show. This year the award is joined by the new 2016 Commercial Green Car of the Year, which crowns one of the little vans increasingly used by small business as cargo and delivery vehicles. The Green Truck of the Year finalists are the Chevrolet Colorado Duramax (pictured), Ford F-150, GMC Canyon Duramax, Nissan Titan XD, and Toyota Tacoma. The first three of those were on last year's list, but since they are completely new or upgraded for 2016 - Ford with its all-aluminum body, the General Motors twins with the new diesel Duramax engine - they qualify for entry again. The Ram 1500 EcoDiesel won last year. The Commercial Green Car finalists are the Chevrolet City Express, Ford Transit Connect, Mercedes-Benz Metris, Nissan NV200, and Ram ProMaster City. You can read more details in the presser below, and the awards will be announced in San Antonio sometime during the show from November 19-22. San Antonio Auto & Truck Show Announces 2016 Green Truck of the Year and Commercial Green Car of the Year Finalists SAN ANTONIO, Oct. 22, 2015 /PRNewswire/ -- Green Car Journal and the San Antonio Auto & Truck Show have announced finalists for the 2016 Green Truck of the Year™ and 2016 Commercial Green Car of the Year™ awards. The Green Truck of the Year™ nominees are the Chevrolet Colorado Duramax, Ford F-150, GMC Canyon Duramax, Nissan Titan XD, and Toyota Tacoma. Vying for the all-new 2016 Commercial Green Car of the Year™ award are the Chevrolet City Express, Ford Transit Connect, Mercedes-Benz Metris, Nissan NV200, and Ram ProMaster City. "Over the past few decades, new car models have benefitted from design and technology improvements that have brought higher fuel efficiency and greater levels of environmental compatibility," said Green Car Journal and CarsOfChange.com Editor and Publisher Ron Cogan. "With models like these ten deserving finalists, we're witnessing the pickup and light commercial vehicle field enjoying the same attention." The new Commercial Green Car of the Year™ award is part of an expanded awards program presented at this year's 2015 San Antonio Auto & Truck Show.

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.