Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Automotive News & Views GM News, New Models and Market Share
8237 messages, Last post on Nov 22, 2009 at 8:40 AM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
|
|
|---|---|
|
Replying to: kernick (Dec 02, 2008 1:00 pm) House sales will be a mess thanks to the politicians (without party-bipartisan blame) who played with the reality market of who can afford a house. If it weren't for the weekly sheriff's listings section the local rag would probably have folded last year. The listing of foreclosures is larger than the whole paper is some days of the week. That's going to take quite a while to work through especially with the economy in Ohio and Michigan which some hope to make worse, if possible.
|
|
|
|
|
I had no idea there were only 30 standalone Pontiac dealers. Guess I need to revisit my comments on what would happen to Pontiac's models if it was phased out. Pontiac is a different case, say several sources in the company. GM has been shrinking its role for years, cajoling Pontiac dealers to sell to Buick-GMC dealers to form one channel. That plan has succeeded, in that there now are fewer than 30 stand-alone Pontiac dealers who would need to be bought out or merged in with a Buick-GMC dealer. Right now, about 80% of Pontiac's sales are made by dealers who also sell Buick and GMC. GM has even been winding down Pontiac's product line. Next year, it will launch the GMC Terrain small SUV; that vehicle was originally supposed to be a Pontiac but was given to GMC instead. More than half of Pontiac's volume comes from the G6 midsize car. But a freshened model has been delayed and may not be built. GMC and Buick could end up getting most of the higher-volume cars sold in the combined showrooms, while Pontiac would sell just a couple of performance cars. At the Detroit Auto Show in January, GM will show a new Buick LaCrosse, which will be built using the same basic platform as the Chevy Malibu, Saturn Aura, and Pontiac G6. Internally, GM product planners are questioning whether they need two midsize cars selling in the same showroom under the Buick and Pontiac names. That's one reason that GM has delayed developing an all-new G6. If GM does get rid of any of its brands, it will be a long, drawn-out process. There may not be any specifics on union concessions this week, either. One high-level GM executive said that anything with the union will have to be negotiated after the meeting in Washington. But options include a wage cut and getting rid of the union JOBS bank, which pays workers 75% of their wages while laid off. The UAW already agreed to cut pay from $28 an hour to $24 an hour at a Mitsubishi plant in Normal, Ill., says Sean McAlinden, chief economist at CAR. |
|
|
|
 http://www.autoblog.com/2008/12/02/by-the-numbers-november-2008-brother-can-you-- spare-a-dime-ed/#comments
|
|
|
Replying to: imidazol97 (Dec 02, 2008 12:51 pm) Again I ask you, do you think this $25B is the last they will ask for? GM alone has $66B in debt they can't repay. Chrysler is a "Dead Man Standing". Ford has the best chance. But please do not think they will not need further financial support. Regards, OW
|
|
|
|
|
GM offers cuts in brands, salaries, debt, payroll The General Motors of 2012 will have fewer brands and nameplates, thousands fewer dealers and employees, and much less debt on its balance sheet, under a restructuring plan GM gave Congress today. GM will focus on its "core brands" of Chevrolet, Buick, GMC and Cadillac, the plan says. GM will sell Saab, shrink Pontiac to a niche brand and consider selling or closing Saturn, GM President Fritz Henderson told reporters at a briefing today. GM also plans to trim its U.S. dealerships from today's 6,450 to about 4,700, Henderson said. It will cut about one-third of the nameplates from its vehicle lineup. GM's plan asks Congress for $12 billion in loans by the end of March. It seeks another $6 billion in revolving credit if market conditions don't turn around. The total request is higher than the $10 billion to $12 billion that GM CEO Rick Wagoner requested of lawmakers during congressional hearings two weeks ago. Henderson called the GM plan "a blueprint for creating a new General Motors -- one that is leaner, profitable, self-sustaining and fully competitive." Among its key features: • Reducing the number of GM brands and nameplates, a step GM critics have demanded for years. Henderson said GM will seek a buyer for Saab. Pontiac will be shrunk to a "specialty, niche" brand, Henderson said. GM already has put Hummer up for sale. Under its franchise agreement with Saturn dealers, GM will seek a new course for that brand, Henderson said. Asked whether GM would sell or fold Saturn, he said he would not eliminate any options. The brand "is just not successful," Henderson said. The number of GM nameplates would drop from 63 today to about 40 by 2012, Henderson added. • Trimming GM's 6,450 U.S. dealerships to about 4,700. Most reductions would occur in metropolitan areas, Henderson said. • Reopening talks with the UAW to cut manufacturing costs further. Henderson declined to identify the additional concessions GM will seek. But he said GM expects to be fully competitive in labor costs with Toyota Motor Corp. by 2012. Henderson estimated GM's total U.S. head count would drop from today's 96,000 employees to between 65,000 and 75,000. • Negotiating with lenders and bondholders to remove about $35.6 billion in debt from GM's books. At the end of September, the company owed $66 billion. Henderson said that debt load is too heavy. Sounds to me like it isn't enough. They will still have way too many dealers for one thing. And how are they going to get their labor costs down by 1/3 AND eliminate the Jobs Bank? Doesn't seem plausible. I also don't think they can continue to capture more than 20% of the U.S. market, so their projections based on a 24% market share are also apt to get them in further hot water. http://www.autonews.com/apps/pbcs.dll/article?AID=/20081202/ANA02/812029978/1200- - (registration link) Edit...oh, and you just GOTTA love this: In the plan submitted to Congress today, GM said: "Absent such assistance, the company will default in the near term, very likely precipitating a total collapse of the domestic industry and its extensive supply chain, with a ripple effect that will have severe, long-term consequences to the U.S. economy." That kind of talk leaves me half tempted to say BRING IT ON BABY! I mean, really, come ON........ |
|
|
Replying to: imidazol97 (Dec 02, 2008 1:46 pm) I don't think we have seen anywhere near the whole scope of financial mess we're in. I read CBS Marketwatch, and the people who were predicting this foreclosure mess a year or 2 ago, are saying that this slowdown is going to domino into a commercial property disaster next - malls, restaurants, businesses consolidating, and as people lose jobs you're going to have massive credit card defaults. Watching ABC news tonight, they had an article on the cuts having to be made in 40 states to balance budgets including CA at -$28B. Ohio next year is looking at an $8B budget deficit. And given the bailouts this year the feds at $1,000+B deficit/year is not coming to the rescue! There will be many cuts in the nations largest employer - government. So this is far from over. The economy isn't jumping back to healthy, anytime soon. Things probably are going to get worse for far longer than we've ever experienced. Car sales will be lucky to hold where they are now. |
|
|
Replying to: nippononly (Dec 02, 2008 4:43 pm) The total request is higher than the $10 billion to $12 billion that GM CEO Rick Wagoner requested of lawmakers during congressional hearings two weeks ago. They must have had an early look at the Nov. sales numbers! Frackin unbelievable!
|
|
|
Replying to: kernick (Dec 02, 2008 4:50 pm) |
|
|
|
|
Replying to: nippononly (Dec 02, 2008 4:43 pm) That kind of talk leaves me half tempted to say BRING IT ON BABY! I mean, really, come ON........ In Fords report it says the same thing. If GM goes under Ford will follow suit because of suppliers.
|
|
|
Replying to: m4d_cow (Nov 30, 2008 10:09 pm) If anything, you have it backwards. The Lambdas are comparable to the Tahoe in size, and the Sub. is far more stable as a towing vehicle, due to the longer wheelbase. |
|
You are here:
Forums
Automotive News & Views GM News, New Models and Market Share
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
Browse by Board
Browse by Topic
Today's Chats
