The company’s ability to pay back ahead of time is a sign that GM’s financial plan is working, says GM CEO Ed Whitacre. This is definitely good news for GM investors around the globe. Whitacre also stressed on the importance of letting their investors reduce their equity investments.

GM’s sales shot up to 36%, though, compared to the previous year. The popular crossover models including the 5th generation Camaro, the mid-sized Malibu and Lacross, and the range vehicles Equinox, Traverse, Acadia, and SRX all contributed to the increase in sales growth.

Based on the recent press release of GM, Fairfax will serve as the company’s primary source of the next generation of Malibu models. Detroit Hamtramck, which currently produces Cadillac DTS and Buick Lucerne, will also be provided with equipment to produce the Malibu. Also stated in the press release is the company’s assurance that the Chevrolet will be able to meet its market demand.

GM’s Malibu-related investments totaling $136 M in Fairfax and $121 in Detroit cover machinery, equipment, tools and facilities.

According to some reports, there will still be some impediments to overcome before GM can see its new beginning. Most of these processes will not have GM calling the shots— the bankruptcy judge still needs to rule on urgent matters by July 1. The court will hear a call for sale based on Section 363 which will involve putting on the market of the GM assets.

The General Motors is eyeing to form a new company by mid July and try to cut its time in the bankruptcy court. Among the major issues needed to be addressed is the reorganization.

The car manufacturer aims to chop of from its rank hundreds of dealerships across the United States before the end of 2010. The dealers who will remain in business can definitely smile but be ready for tougher demands for their businesses.

In the near future, GM representatives are set to meet with the dealerships to discuss their sales goals and the new setup that the dealerships must adapt to.

According to insiders, Gm will be focusing on their brands and there is a looming anxiety among dealerships that non-GM services and goods will be eventually discontinued.

Some dealerships may not agree to sign the new contract with GM and will have to raise some issues, there is a hint though that they will be terminated by the bankruptcy court if they will not sign.

They have been doing this kind of movement in the past. It has been a normal housekeeping for them as part of the whole process.

Included in the auction was a 1996 Buick Custom Blackhawk (photo right). Up for grabs at that time was the 2000 Buick Custom Blackhawk which was sold at $475,000. A 1904 Oldsmobile Turning Runaboout was even sold. Truly a housekeeping stage for General Motors.

For the racers, two Pennzoil-liveried IRL race cars were included in the auction. A Chevy S-10 stadium race truck was also auctioned along with the 1998 Chevy S-10 drag truck.

Ford was not out of the loop. It also had cars sold in that season. The list includes a Mustang Cobra Jet drag car and the Raptor F-150. These units must have been very expensive and people think that the manufacturers have earned everything from such an event. But not all of the auctioned items were actually profiteering. Some chunk of the proceeds went to charitable institutions.

As expected, General Motors have gotten most of the earning. Companies need the money more than anything else. This is especially true to them since a number of highly sophisticated, expensive vehicles were sold out.

Now you know it, you must be regretting for not being a part of it.

Maximum Bob has been with the car company since 2001, who first served as the vice chairman for the global marketing development, and he is greatly known – when he is not aboard on fighter planes – for designing and planning the Chevy Volt concept from scratch to its early stage of conceptualization.

Maximum Bob announced that he will step down from his position and Thomas Stephens will be the one who will take the position. Stepping down from the position on General Motors is not the end of Bob’s function as the product czar, for he will continue to give his opinion to the company with regards to product-related issues from April up to the end of this year. General Motors said that he will retire for good at the end of 2009.

Critics said that the most closely connected product for Maximum Bob at General Motors is the Volt. This is an extended line of electric cars that the company has been totally working out for two years. Is Maximum Bob’s departure a threat to the GM Green Car? The product czar declared that the project will be complete and it is certainly 100% safe on the track.

However, many critics said that Maximum Bob’s departure is a break point for General Motors. He is widely recognized as the most influential and greatest thing a car manufacturing company could have and his talent is not that easy to replace.

The scheme also allows union members to access loans for purchasing new vehicles. GM will be able to reach out to members of around 8000 credit unions across all states and gives them discount for new car purchases. They may also tap into the available $80 billion easy to the pocket credit union auto loans.

The move of the GM follows their trial expansion in four Midwest states early December of 2008.

Chrysler LLC also widens its coverage of credit union programs as it is now available nationwide growing from 12 states.

The response of the dealers with the pilot run is very positive according to GM executives. The national dry run is set to last until the end of March this year where credit union members can enjoy supplier discounts for new cars under the brands of Pontiac, Saturn, Chevrolet, Saab, Hummer, Cadillac, and Buick.

Interested members can avail of most 2008 and 2009 models except the medium duty trucks and the Corvette.

Credit union rates are comparatively lower at 5.4% than most banks’ 6.9%. The website of the union was barged with 1.3 million hits.

According to the statistics of the program proponents, around 30% of the members who inquired for the discount code ended up buying a new vehicle. That is a significant conversion rate that makes GM officials smile.

In the recent weeks, the company has announced to the public that it will be cutting its budget for product line expansion for as much as two years with a greater percentage of belt-tightening happening in 2009.

Experts see the move as an anxious step to stay afloat amid the credit crunch. This means that dealerships will not get the cars that they are supposed to sell on time, cars which will help GM recover.

Officials of GM reveal that capital expenditure portions for engineering, design, and other things will mean money going out from the GM books and needs to be cut. They have disclosed that the current global financial disaster is one of the toughest challenges faced by the company.

Cars like Camaro and Chevrolet Volt will not be delayed but most of the range of cars will. Auto industry experts say that holding production is a threading on dangerous waters since this may mean falling short of sales goals in the future.

Some are speculating that GM has reached a critical level of cash flow. Sources say that with full blast production the company uses up around $1 billion per month. The company has only $17 billion left of its funds thus the development delays might be signs of desperation.

GM needs around $14 billion to maintain full operations and financial experts are seeing a very difficult winter ahead for the car manufacturer.

There will still be debuts in 2009. These will be the GM vehicles that have been developed like the Buick La Crosse and the Camaro from Chevrolet. The Chevy Volt is also expected to hit the market by next year. Some industry experts are wondering why the Cruze, expected to bring in the volume of sales, will be delayed.

President-elect Barack Obama dances to the same tune playing during his campaign recognizing the need for more loans for the car industry. Obama revealed during a television interview that he has delegated his staff to study the potential solutions to the looming crisis making life difficult for car producers.

The auto industry is identified by the US president-elect to be the spine of American manufacturing and promises to prioritize the problem if the Congress will not be able to take action during their November 17 session.

The car industry was given a $25 billion funding by the government but this is to be allocated for developing more fuel efficient vehicles and not to resolve the cash flow problems experienced by big car manufacturers like GM.

GM officials expressed their urgency for a financial aid expressing that the situation might not be able to wait for the new president to take his seat in the oval office in January.

In exchange for funding, the car manufacturer offers to give the government preferred stock options, determine salary caps for its top executives, and accelerate their program for the production of fuel efficient cars.

GM sends the distress call as it reports cash burning amounting to $6.9 billion dollars in Q3 which decreases their reserves to $16.2 billion. The car manufacturer needs to have reserves of at least $11 to $14 billion to stay afloat.