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General Motors

Thinking about buying a used car? You might want to do it sooner rather than later. Prices are on track to rise an average of 1.8% in 2012, and used compact cars will go up even more -- nearly 3%. What's going on? And what does it mean for car shoppers?
Not long ago, each time gas prices shot up and car buyers turned to more fuel-efficient models, the Detroit automakers would get hammered. Their lineups favored gas-hogs, and their smaller models left much to be desired. Oh, how times have changed.
U.S. auto sales are off to a strong start this year, continuing the brisk pace from late 2011. Chrysler had its best January in four years while Ford got a boost from small cars and SUVs. Volkswagen, which wants to aggressively expand in the U.S., reported much higher sales. One sour note was GM, where sales fell.
Shares of Ford fell sharply on Friday after the company reported a quarterly result below analysts' $0.26 a share expectations: $1.1 billion, or $0.20 a share. But despite the disappointing profit number, Ford's core business is actually in great shape.
GM CEO Dan Akerson is charged up about the politically manufactured controversy surrounding the Chevy Volt. "We did not engineer the car to become a political punching bag," he said. Tough words -- but rescuing the Volt's reputation will be a tough fight.
BMW's 3 Series is the undisputed global king of the entry-level luxury sedans, but GM is looking to stage a bit of a coup with its Cadillac ATS. The car has all the right moves, inside and out -- but there's one thing missing.
Federal safety regulators are investigating problems with the automatic shift levers on several General Motors cars because drivers may think the cars are in park when they actually are in gear. Seven crashes have been reported because of the problem.
GM made $2.2 billion in North America in the third quarter, but it couldn't expand on that number with earnings abroad. Now the bailed out, revamped and much-improved automaker has to find a way to make Europe profitable -- because the Continent is essential to its global operations.
It's an obvious, inevitable question: GM or Ford? On one view, Ford -- with its solid line of hit products and bailout-free balance sheet -- is the fiscally responsible choice. But the company known until recently as "Government Motors," trading right now in the low $20 range, is turning itself around and qualifies not only as a buy, but a steal.
Fears that car buyers would stay away from dealerships in August never materialized. Instead, Americans were lured by new models, cheaper financing and the need to replace aging cars, boost August sales by 7.5%.

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