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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.

Next Buick Verano headed to Shanghai Motor Show

Buick is a big deal in China and ranks third in automotive brand popularity there, according to a recent poll. It should come as little surprise, then, that the company is using the upcoming Shanghai Motor Show to debut the next-gen version of the Verano. We are even getting a shadowy tease of the small sedan's look ahead of the April 19 unveiling. Actually called the Wei Lang in China, Buick says the redesigned Verano takes styling cues from the Riviera concept from 2013 Shanghai show and the recent Avenir, as well. Neither inspiration seems too obvious based on this teaser image, but the small sedan does gain two creases down its side: one arches through the front door handle and the other picks up over the rear fender. Buick isn't even hinting at what powers the Verano in China and simply asserts that the model sets class benchmarks for "performance, safety and comfort" there. Of course, as with many foreign market models, it's possible that the sedan could use different engines or wear different altered styling when it arrives in the US. Buick Verano Sports Sedan Named "Wei Lang" in Chinese, Will Make Debut in Shanghai on April 19 2015-04-14 SHANGHAI – Shanghai GM today announced that the Verano, Buick's new-generation sports sedan, has been given the name of "Wei Lang" in Chinese. It will make its debut in Shanghai on April 19, on the eve of Auto Shanghai 2015. As a new strategic model for the Buick brand, the Verano will offer a refreshing driving experience through its stylish and dynamic exterior, exquisite and comfortable interior, and precise and powerful performance. The Verano was inspired by the 2013 Buick Riviera concept car and captures the design essence of the Buick Avenir concept car, which debuted at this year's North American International Auto Show in Detroit. The Verano demonstrates Buick's insight into the aesthetic preferences of Chinese consumers. It embodies the innovative reimagining of Buick's classic design elements, exemplifying the elegance and dynamism of Buick's new-generation products. It is expected to set new benchmarks for performance, safety and comfort in its class. Like the all-new Excelle GT, which was launched earlier this year, the Verano will serve as a strategic model in Buick's bid for a stronger presence in China's mid-range vehicle segment. General Motors traces its roots back to 1908. GM has 11 joint ventures, two wholly owned foreign enterprises and more than 58,000 employees in China.

New Takata problem results in recall of 414 GM vehicles

An airbag-inflator rupture discovered by Takata during testing has resulted in a new recall affecting 414 vehicles from General Motors, including 395 of them in the US. This latest campaign covers 2015 model-year examples of the Buick LaCrosse, Cadillac XTS, Chevrolet Camaro, Equinox, Malibu, and GMC Terrain. There are no reported breaks in any of these vehicles on the road, and the company estimates only one percent of them actually have the faulty parts. According to documents submitted to the National Highway Traffic Safety Administration (as a PDF), one side-airbag inflator failed a cold test at -40 Fahrenheit "releasing high pressure gas and propelling the separated components apart." The supplier told GM about the failure the next day. In these vehicles, the safety device might not only burst but the bag could inflate incorrectly, as well. GM and Takata say that a cause is not yet known, but they are "conducting an investigation." GM will begin notifying affected owners via overnight mail on Oct. 19. Dealers will replace the side airbag modules on all of the affected vehicles with new components outside of the suspect lot. All of the removed parts will also be collected for further study. Takata's faulty front airbag inflators have resulted in a serious scandal for the supplier. Initial figures indicated 34 million US vehicles are need of repair, though more recent figures have knocked that down to 23.4 million bad parts in 19.2 million automobiles. GM was already among the dozen automakers with models to fix, and some of its pickups were affected, along with the Saab 9-2X and Pontiac Vibe. GM Statement: General Motors is recalling 395 cars and crossovers in the U.S. because one of the front seat side air bags inflators may be defective. In the event of a deployment, the air bag's inflator may rupture and the air bag may not properly inflate. The rupture could cause metal fragments to strike the vehicle occupants, potentially resulting in serious injury or death. GM is unaware of any incidents involving vehicles with these components, which were part of a lot in which one inflator failed acceptance testing at the supplier. Dealers will replace the side air bag module or modules in affected vehicles. Including Canada, Mexico and exports, the total population of the recall is 414, GM estimates 1 percent of the recalled vehicles may have the defect.