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Automotive News & Views GM News, New Models and Market Share
8270 messages, Last post on Nov 23, 2009 at 5:01 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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Replying to: nippononly (Dec 02, 2008 4:43 pm) 1 - It's not aggressive enough 2 - not enough specifics on phaseouts, timing, and union concessions. Looks like a carrot to get the money and then "we'll see..." 3 - GMC should also be folded into Buick/and/or Chevy 4 - Wagoner should be replaced Clarify #2, do #3 and #4 and then we are starting to have a viable plan. Otherwise forget bailing GM. |
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Replying to: nippononly (Dec 02, 2008 4:43 pm) Gettlefinger said on Sunday that the UAW costs were "now competitive". This quote says 2012. I smell a lot of propaganda. They're all piling the poop higher and deeper to sell the bailout to congress. See how one of GMs big claims is still holding the economy hostage: "We'll take a bunch of the economy down with us if we're allowed to fail". No accountability for Wagoner's screwups over 14 years. Pathetic. And now they pick our pockets. |
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Replying to: 62vetteefp (Dec 02, 2008 6:12 pm) Yes! Good god! It sounded good 3 years ago, but the closer to reality this gets the more of a turkey it becomes. I mean, really, what possible value could it have to GM? A halo effect? That's worth billions in development and marketing costs? It will never make money if it ever gets made in the first place. |
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Replying to: tlong (Dec 02, 2008 9:31 pm) They see this as an unfortunate problem and a temporary obstacle. They fail to see that it's really a symptom of decay and ruinous policies that infests the entire management of the company. The proposal is a complete joke.
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Replying to: plekto (Dec 02, 2008 10:10 pm) True. But is it good enough to pass congress?
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Replying to: obyone (Dec 02, 2008 11:56 pm) There was an article in the L.A. times opinion section about this, where it was suggested that since the Government is basically taking control over much of the company, why not do the right thing and buy out the company entirely? The Government will end up having to take over the pensions and health care of the workers anyways when GM goes under in a couple of years, so that part of the equation is pretty much a moot point. That leaves the value for the money. GM is only worth $10 billion or so right now, and that's less than they wold waste in the next year on frivolous garbage. What would we gain? The article pointed out that it would fit well with Obama's desire to reshape our energy policy by making vehicles at cost and to fill a need rather than to pollute and make a profit. Losing a coupe of billion a year is far better than throwing 50 billion down a toilet and delaying the inevitable, after all. |
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Replying to: cooterbfd (Dec 02, 2008 7:12 pm) Also consider the number of states that GM and Delphi are in. What have the STATES offered them? Or the CITIES - maybe in the form of tax breaks? If the people of MI and OH ... desperately need the Big3 - what are they doing? Maybe they can't provide all the support, but are they doing anything extra in the last 3 months? has anyone heard? Is MI issuing $5B in bonds or anything, and lending to GM? No? Why not? |
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