Automotive Purchasing News Review 24 March 2014 - page 1

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News Review
24 March 2014
Management
changes for
GM-AvtoVAZ
Mar 19, 2014
Effective 11 April, Jeffrey
Glover (pictured) will be
appointed to the position of
CJSC 'GM-AvtoVAZ' managing
director.
Glover,
who
currently
occupies the position of project
accelerate director at Opel/
Vauxhall, will report directly to
GM Russia and CIS president
and managing director Andy
Dunstan.
Meanwhile,
Effective
1
April, Gary Tilson, currently
CJSC 'GM-AvtoVAZ' managing
director will be appointed
to the position of director,
project accelerate revenue
management at GM Russia and
CIS and he will report directly
to GM Russia and CIS president
and managing director Andy
Dunstan.
In other news, the new
AvtoVAZ CEO, Bo Andersson,
has cited the re-emergence
of iconic Russian brands as
an example of how companies
can be turned around, adding
he joined the automaker after
five years at the helm of fellow-
Russian manufacturer, GAZ
Group, for "pure image."
GM’snewsafetychiefwillhave
resourcesand full access
Mar 21, 2014
General Motors CEOMary Barra has
insisted that the role of Je Boyer
(pictured, the Detroit automaker's
new safety chief, is to prevent
the delay of safety recalls. As
Automotive Purchasing editor Drew
Hilier reports, Barra also pledged
that Boyer will get more resources if
needed and a orded full access to
the company’s executive team.
Barra, writing in USA Today
(March 20), said the company's new
vice president overseeing global
safety, Je Boyer (pictured), "will
set a new standard for customer
and vehicle safety and his first
order of business is to help prevent
this from happening again."
"Je will have open access to me
and our board. If there are obstacles
in his way, he has authority to remove
them. If he needs more resources,
he will get them," wrote Barra, who
earlier this week apologized for the
broadening controversy surrounding
the company's safety recalls and
promised the auto giant would
improve the process in the future.
Decade of complaints
The company says it first
learned of ignition problems in
2001 and despite a decade of
complaints opted not to recall the
vehicles. The Justice Department,
two committees in Congress and
the National Highway Tra c Safety
Administration are investigating.
GM has two outside law firms
conducting a full investigation into
what went wrong. The company
has
repeatedly
apologized.
Barra personally addressed GM
employees in a contrite message
as executives at the American auto
giant seek to address a widening
scandal over safety issues a ecting
millions of cars. GM has admitted
that it was aware for nearly 10 years
of an ignition issue that a ected 1.6
million cars and can interfere with
air-bag deployment.
Seize the opportunity
“Something went wrong with
our process in this instance, and
terrible things happened,” Barra
said in her video message to
employees. “We will be better
because of this tragic situation if
we seize the opportunity. And I
believe we will do just that.”
Barra said the company has
sent out letters to customers, and
recalled an additional 1.55 million
autos as part of its ongoing internal
safety review. GM is increasing
production lines to help replace
parts in faulty recalled cars and
dedicating a slew of new customer-
service representatives to deal
with the problem, she said.
Customers first
“We are completely focused
on the problem at the highest
levels of the company, and we
are putting the customer first and
that is guiding every decision
we make,” Barra added. “That is
how we want today’s GM to be
judged. How we handle the recall
will be an important test of that
commitment.”
Crimeanportsand theexpropriation risk factor
Mar 18, 2014
In light of Vladimir Putin’s
first legislative step towards
‘embracing’
the
Crimean
peninsula, approving a draft
bill on the accession, the EU
and US have moved to impose
sanctions. Yet, as Automotive
Purchasing editor Drew Hillier
reports, according to updates
recently by Lloyd’s Loading
List, the five state-owned ports
on the Crimea Peninsula could
see ownership change hands
from the Ukrainian
government to the
Crimean government
as an autonomous
unit
within
the
Russian.
The ports allowing
access to Crimea's
Black Sea shipping
lanes have already
been
experiencing
partially disrupted car
imports to Ukraine,
resulting in a suspension of
sales for a number of carmakers.
Crimean ports — including
Sevastopol, Kerch, Feodosiya,
Yevpatoriya and Yalta — are
thought to account for 10
percent-15 percent of Ukraine’s
total cargo traffic. Since the onset
of the current crisis, a number
of auto shipments have been
redirected through the mainland
Ukrainian ports of Nikolaev,
Odessa and Illichevsk.
International border redrawn
The problem is not only that
the ports cannot operate normally
but that on Perekop, a narrow
strip connecting the Crimean
peninsula with the mainland of
Ukraine, works are already being
carried out on a new international
border. In the wake of recent
events in the Kremlin, this border
will presumably be granted
official status with the result that
the supplies of cars from Crimea
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