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Automotive News & Views What if you were in charge of GM?
874 messages, Last post on Oct 28, 2009 at 10:20 AM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: Mr_Shiftright (Dec 01, 2008 8:37 am) The bigger problem is the top management at GM either doesn't see this, believe what they have done is enough or realize it but feel handcuffed by their investors. Either way, the top management at GM has been a major disappointment and must go. They were unable to make this company profitable during easy credit and record sales. How the heck can they make a profit in these market conditions??? I feel bad for the workers but they also had to know that GM's business model was unsustainable. it's not like this was a mom and pop operation where only 2 or 3 people knew the condition of the company. This is a publicly traded company that has to report it's earnings every quarter. Since the second half of 2004, GM has been losing money. Everyone knows that at some point the reserves are going to run, don't they? If, When, GM declares bankruptcy, the UAW has to shoulder some of the blame although management should never agree to labor contracts they know they can't pay. |
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If I were in charge of GM here would be my plan: First and foremost eliminate as much rebadging as possible. There would be very few identical products sold under different names. In my opinion it's just a waste of money producing and marketing such duplicate vehicles with different names. Get rid of Hummer. Even if Hummers get developed into decent and affordable offroaders, the name still has that anti-environment stigma attached to it that might take years of losses to overcome. As for Saab, as Shifty said, sell it, or raffle it off if necessary. Keep GMC Truck division only for heavy duty commercial products, but not for selling light trucks and SUVs. Instead all light duty trucks wold be sold under the Chevy name. SATURN Make Saturn into GM's exclusive importer of foreign products such as the Opel and Vauxhall lineup from Europe, Holden vehicles from Australia. Astra: keep it as is Aura: replace it with a mid size European import from Opel Sky: keep it as is Vue: keep it as is Outlook: axe it as it would be sold under Chevy anyways New Saturn models: Saturn Ute, which is the Holden Ute car based pickup. Price it starting at under $20k. Saturn G8, sold currently under Pontiac but now would be sold under Saturn. European "cargo cars" , basically tiny vans based on current cars such as Astravan and Combo. BUICK As someone pointed out early, get rid of the brand's geriatric image. I'd make it into GMs power and style division. This would mean vehicles with mega horsepower, bold styling, and heritage. Lacrosse: axe it as it intrudes onto the Lucerne's price range and size Lucerne: keep it as an entry level Buick sedan Enclave: keep it only in it's most potent and loaded form (leather with all bells and whistles) New Buick models: Grand National: RWD coupe based off the G8 sedan platform Special or Super: make it Buick's halo car, a full size 4 door convertible sedan, similar in style to the Chrysler Phaeton concept of the 90s but with updated looks and technology. Also make a 2 door convertible version of the car. CADILLAC CTS: keep it as is but add a CTS wagon, convertible, and a coupe to compete head on with BMW 3 series and MB C Class STS: keep it as is but style it slightly differently so it doesn't look almost like a CTS, and also add a wagon to the mix DTS: rename it to a Fleetwood or Deville Concours (or other glitzy name it deserves), give it a RWD platform, and as many mentioned before, make it the best that it can be so it can compete with the likes of the MB S class, Lexus LH, and BMW 7 series. Spare no expenses and make it the standard of the world again. Make it more reliable than German counterparts and maybe you can win over some MB and BMW buyers. XLR: Axe it SRX, Escalade, Escalade ESV: keep as is. Escalade EXT: axe it, as it's almost the same as an Avalanche PONTIAC Get rid of the entire division. Waves are sold under the Aveo name which would be replaced anyways. The G5s are rebadges Cobalts. Move the Vibe to the Chevy lineup. G6 sedan, coupe, and convertible, as nice as they look axe them as they overlap into other similar products and price ranges. Axe the Solstice as it's the same as the Sky. Axe the Gran Prix too. CHEVROLET Make Chevy the bread and butter lineup ranging from the most affordable car in America to the quickest (Corvette). Aveo: axe it, after it's replaced by new Chevy Beat Cobalt: update it until a suitable replacement to be brought to market asap HHR: axe it Malibu: keep it Impala: make it into an affordable fun RWD sedan once again Corvette: keep it Equinox: axe it Traverse: keep it but make it in twot wheelbase lengths to replace the Equinox Tahoe: axe it Suburban: keep it but make it in two wheelbase lengths to replace the Tahoe Colorado: keep it but offer a base $15k model with a 4 cylinder motor. Silverado: keep it Avalanche: keep it Express: keep it New Chevy models: Chevy Beat: fast track it's development so it can be borught to the market faster, price it at starting at under $12k. Chevy Vibe: trnafer over from Pontiac's division Chevy Volt: bring onto ther market as scheduled Within 5 years offer the Volt powertrain on most small and mid size Chevies, just like hybrid powertrains are becoming a common option today. Summary of casualties: Saab lineup Pontiac lineup (excpet the Vibe) GMC Light duty trucks Buick Lacrosse Saturn Outlook Chevy Aveo Chevy HHR Chevy Equinox Chevy Tahoe Cadillac Escalade EXT Cadillac XLR As for the dealer network, it would go through some reorganization, and some smaller ones will be bought out, other will get revised brand to sell: Dealer networks would be divided into Buick/Cadillac (GM's luxury vehicles); Chevy only dealers since now the lineup is big enough; and Saturn only dealers since the lineup is large enough as well. The sale of Saab wouldn't hurt Saturn dealers as they'd have more imported stuff to sell now. The Buick, Pontiac, and GMC Truck dealers would lose 2 brand but gain better Buick lineup and Cadillac line, so that they can focus only on luxury. The Chevy Cadillac dealers would lose the Caddy franchise but gain a broader mainstream Chevy line. |
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Replying to: boomchek (Dec 01, 2008 1:52 pm)
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Replying to: lemko (Dec 01, 2008 1:57 pm) Sorry, I'm not too familiar with Buick's history.  I meant to say that there should be some halo car with a cool name from the past. 
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Replying to: boomchek (Dec 01, 2008 1:52 pm) Saab lineup Pontiac lineup (except the Vibe) GMC Light duty trucks Buick Lacrosse Saturn Outlook Chevy Aveo Chevy HHR Chevy Equinox Chevy Tahoe Cadillac Escalade EXT Cadillac XLR" Your plan would have some merit if the company wasn't in such dire straits. Your vision is still too bloated of a company with too many unnecessary models and too much overlap/duplication, IMHO.
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Replying to: carnaught (Dec 01, 2008 2:38 pm) In addition to the streamlining of models, I'd also streamline the options and engine/tranny packages. I'd try to have each model available with one or two motors at most, and simple trim levels and packages, like Honda is doing. It would make ordering easier, production simpler, and less confusing for the customer. I guess 2-3 years into the new plan I would start axing models as necessary based on sales figures, market demand, and trends. If I'd have to go really extreme and cut even more, then I'd axe Buick as well (put it to sleep for now), and just leave a full Chevy, Caddy, and Saturn lineup as described in my original post. |
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1. lobby gov't for loans 2. buy some car magazine publishing companies back from the current Japanese owners. 3. Figure out how to hold down the price of gas for the next 5 years 4. eliminate half of the 200 highest paid executives jobs in GM, worldwide. 5. negotiate a union contract that allows robots to eliminate jobs 6. negotiate to enforce a mandatory union retirement at 30 years 7. negotiate the elimination of pay to anybody not working an actual job, like jobs bank. 8. negotiate that union workers pay $3000 to $6000 a year for their family health and dental care insurance and co-pay like salary workers already do, including retirees. 9. lobby to get the gov't to buy all unused plants and real estate owned by GM but not being utilized 10. lobby to get gov't to have all buyers of new foreign cars (defined by company ownership) audited. (includes leasing and rentals) 11. lobby to get gov't to match funding for all R&D aimed at increasing fuel efficiency. 12. Get states to exempt D3 workers from state income tax, and collect that lost revenue from auto workers in foreign owned plants, equally divided among all of them. 13. lobby gov't to make it illegal to manufacture cars in America using parts purchased within the USA from non US owned companies, without paying auto import tarriffs. |
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Replying to: dave8697 (Dec 01, 2008 4:08 pm) So much for the "car company--oil company" conspiracies. They are more like two cats with tails tied together.
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Replying to: Mr_Shiftright (Dec 01, 2008 4:57 pm) You can lay that right on the backs of the hedge fund speculators like George Soros. He wanted to make W look bad and spent $millions to get his way. The Big 3 collapsing would be exactly what he would like to see. He and his ilk will come in and buy up the pieces for pennies on the dollar.
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Replying to: dave8697 (Dec 01, 2008 4:08 pm) 2. Lobby... . . 13. Lobby... So in other words, your plan for GM is for them to keep doing what they've been doing all along? 
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