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Can GM make Cadillac the standard of the world Again?

6098 messages,  Last post on Aug 14, 2009 at 4:43 PM

You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires

What is this discussion about? Cadillac Escalade, Cadillac XLR, Cadillac STS, Automotive News


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#5101 of 6098
Bob.... by cooterbfd
Jul 21, 2008 (12:38 pm)
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COOTER: I have no thoughts on that in Mississippi except to wonder why...
 
When I saw this (I can't remember where) I was disappointed. As an American, I'd like to think we are up to ANY challenge, ala WW2. I don't believe that they have to be union (or not) to build a quality product, I just believe it helps to stick together to make sure you aren't taken advantage of. I don't agree with banding together to "Stick it to the man", but I also think that we have an obligation to stand up for ourselves when we feel wronged, as well as stand behind others we see wronged.
#5102 of 6098
Re: Would'nt you know... [circlew] by sls002
Jul 21, 2008 (1:20 pm)
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Replying to: circlew (Jul 21, 2008 9:50 am)

How does GM account for the costs of trucks vs cars? There are a lot of overhead expenses that cost GM money, but probably can't be directly charged off as either a car or a truck expense, and so are charged off evenly accross all models. The Escalade probably does not cost much more than the Chevy Suburban, but is priced higher, making it much more profitable. I question whether they can or should be comparing the cost of the Escalade with the Malibu.
 
We know for example that GM's gross sales were about $180 billion in 2007 and sales were about 4 million. that averages out to $45,000 per vehicle. but probably need to account for world wide sales. In 2006 sales were 207 billion on 9.1 million vehicles world wide = $22,800 per vehicle. So the minimum price tag should be $25,000
 
One of the long term problems that GM has had is how to make profits off the small cars. They have never been able to see them as anything but cheap cars to sell at no profit. I think that this has been an accounting problem of sorts. I think one thing they wanted out of the Saturn investment was accounting that would show a profit.
#5103 of 6098
Re: My experience is different [circlew] by lemko
Jul 21, 2008 (3:38 pm)
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Replying to: circlew (Jul 21, 2008 12:21 pm)

Are we talking about the same engine? That 307 V-8 is darn near bulletproof. My car has 157K miles on it and I never had to take the engine apart. It would take an extraordinary circumstance to blow a head gasket on that car.
 
As for a 4100-powered 1984 Fleetwood Brougham, I can believe it. I drove a 1983 model once with the 4100 and 0-60 could be measured with a calendar. It was, however, a very nice car.
 
I think that Cadillac should've stuck with the 425 V-8 from 1977-79 until a suitable alternative could be developed, just paid the CAFE fines, and told the eco-weenies where they could shove their Birkenstocks and granola bars.
#5104 of 6098
It's all nice and good... by bumpy
Jul 21, 2008 (6:58 pm)
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to say that GM should have simply thumbed its nose at the government and continued to build smoggy gas guzzlers regardless of the political, social, and economic climate of the time. However, in doing so management would have been abrogating its fiduciary duty to the shareholders, and most likely would have been out on their bums in short order.
 
As for the Oldsmobile engine in those not-really-Cadillacs-anymore, they were understressed machines that held together well enough, assuming the guy on the line didn't decide to take his liquid lunch before he finished torquing down the head.
#5105 of 6098
Re: Would'nt you know... [sls002] by tlong
Jul 21, 2008 (8:03 pm)
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Replying to: sls002 (Jul 21, 2008 1:20 pm)

One of the long term problems that GM has had is how to make profits off the small cars. They have never been able to see them as anything but cheap cars to sell at no profit.
 
To the earlier post, this is the problem. With all of those SUV profits in the late 90's and early 2000's, you would have thought that management would diversify the product line a bit. How about investing that money into a *truly* competitive small car, small engine? Did they think oil prices would never go up? It looks like gross management incompetence to me. I wish I could be that bad and make those salaries...
#5106 of 6098
Re: It's all nice and good... [bumpy] by fintail
Jul 21, 2008 (8:06 pm)
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Replying to: bumpy (Jul 21, 2008 6:58 pm)

Seems like more damage was done to shareholders by making the low quality products instead.
#5107 of 6098
Host by m4d_cow
Jul 21, 2008 (8:49 pm)
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Thanks for the link, Steve.
#5108 of 6098
My take on this luxury thing by m4d_cow
Jul 21, 2008 (8:58 pm)
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I dont think we should compare Cadillac to Rolls or even Bentley, they live in totally different class afterall.
 
Why dont we compare it to a more down to earth world class brands like Mercedes and BMW? Theyre both world standards too, in case anyone forgets
#5109 of 6098
Re: Host [m4d_cow] by steve_ HOST
Jul 21, 2008 (9:01 pm)
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Replying to: m4d_cow (Jul 21, 2008 8:49 pm)

Want another?
 
This one is a bit more topical than Toyota/Subaru:
 
"It's no secret among those who follow the auto industry that the products that are currently coming out of Detroit, and/or about to come out of Detroit, are among the best vehicles in their respective market segments."
 
But there's that whole perception thing....
 
Detroit's tough uphill 'perception' battle suffers another hit (Straightline)
#5110 of 6098
Re: Would'nt you know... [sls002] by circlew
Jul 22, 2008 (2:38 am)
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Replying to: sls002 (Jul 21, 2008 1:20 pm)

That is EXACTLY why the model is broken....costs are too high and the focus was on trucks. So, the truck company suffers in high energy cost environment not to mention labor costs.
 
I'd rather by a 135I GM (think Malibu SS) than a Cobalt (or a CTS) that gets 30 MPG. You can raise the price if the quality is there.
 
Regards,
OW

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