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8665 messages, Last post on Dec 07, 2009 at 9:23 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: 62vetteefp (Dec 02, 2008 5:18 pm) I am proud of you! The problem is this has become a sales pitch for cheap capital on the backs of taxpayers. They can not justify their existence as a profitable entity. While it is partly due to the economic downturn, the decisions in the past 3 -5 years have been nothing short of laughable. Sure it's 20-20 hindsight but even I knew that D3 has been on life support long ago. Who am I? "There isn't a Plan B," said GM Chief Operating Officer Fritz Henderson. "Absent support, frankly, the company just can't fund its operations." It's not going to be the end of the world, just the sad epitaph of a once proud but then ultimately a bloated, mindless and blind industry that past the point of no return long ago. The moral is that although others have done far better as the D3 eroded, the Home Team could not or would not change to the beat the competition. Oh, part of the moral: Don't keep pissing off your customers. and these: * Greed destroys the source of good. ($74/hr. compensation) * Think before you act. (3 private jets to one meeting?? And you make CARS????) * Those who want too much lose everything. (60 nameplates??) Regards, OW |
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Replying to: circlew (Dec 02, 2008 4:42 pm) What bank(s) do you suppose they'll take down with them if they default???
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Replying to: cooterbfd (Dec 02, 2008 5:57 pm)  They are now bullet proof because Uncle Sam will save all financial institutions. Lehman was an "Oops!" Regards, OW
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Replying to: nippononly (Dec 02, 2008 4:43 pm) 40? That's still way too many. 15 would cover the market. *Chevy Aveo (sedan and hatches) Cruze (sedan and coupe), some CUV on this platform Malibu, Equinox Traverse (including Enclave) Impala (aka Holden Commodore), Camaro Corvette *Cadillac CTS (sedan, coupe, wagon- Holden Statesman reskins) SRX- CUV on Statesman platform DTS- long wheelbase CTS *Chevy truck Colorado, Silverado, Suburban, whatever the work van is called Okay, that's sixteen. |
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Replying to: bumpy (Dec 02, 2008 6:07 pm)
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Replying to: circlew (Dec 02, 2008 6:01 pm) Maybe another way to have the government handle this is to tell the banks we'll guarantee their debt, but seeing as how you guys have the trillion or so in cash, heres the rules: 1) Restructure their debt into 30 yr bonds at say, 8.5% 2) No payments or interest accrual for 24 months 3) We get 3% Seeing as how the Big 3 are in Dire straits, here's YOUR rules: 1) Car Czar will be appointed to oversee compliance with agreements w/ gov't (see below) 2) Executive pay limited for life of this agreement (30 years???) 3) No Jobs bank 4) Czar will have final say on labor agreements 5) Preferred stock equvallent to 7.5% of company given to Government as collateral This way, the Big 3 get relief, get the $25 billion for retooling that has already been passed, but no extra money changes hands.
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Replying to: 62vetteefp (Dec 02, 2008 6:12 pm)
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Replying to: nippononly (Dec 02, 2008 4:43 pm) 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. I'm happy to hear they finally came to their senses about cutting brands.... Not exactly what I would propose but it's a good start. Agree that they still will have way too many dealers. Toyota gets it done with under 2000 dealers. Also not sure why they think the UAW will come to the table and accept more concessions and job eliminations. Sure the writing is on the wall that GM needs to reduce labor costs to survive but I don't see the rank and file of the union caving in. I'm sure it has happened at some point in history but I have never seen anyone vote to give themselves less money and less job security. And does anoyone really believe they can do this with only $12B from the government? The numbers don't work out. I still say Chapter 11 is the only way they can make this work. BTW, the US sales numbers for November are horrible....across the board. I don't think we have hit bottom yet. More and more people will continue to go to the used car market. Lots of late model cars (lease, fleet and rental) available. |
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Replying to: bumpy (Dec 02, 2008 7:29 pm) |
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Replying to: cooterbfd (Dec 02, 2008 5:57 pm) That was part of the GM plan to get rid of some of that debt through strong arming the lenders. They are not going to pay the $66billion back. We will get stuck with that no matter what else happens. GM is hoping for a marketing miracle where 5 million people decide all of a sudden they have to have a GM vehicle. The sales are not going back to 15 million vehicles for years. People have been buying on home equity and shoddy lending practices. Hopefully the bankers have put that behind them. |
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