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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: fezo (Dec 02, 2008 5:50 pm) 
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Replying to: Mr_Shiftright (Dec 02, 2008 3:40 pm) That's no more the final number than - the Big Dig in Boston originally costing $3B. All that is, is something GM thinks is palatable to get the ball rolling. Once they get this money committed, it is easier to come back and say "we just $10B more every 6 months because the economy hasn't turned around". It is much easier to ask for $18B and $10B and $10B ... rather than to come in and say "we're going to need $75B for the next 3 years, and we'll have a hell-of-a-time making any profit, to repay any of the loan". Check the history of the Big Dig or many other projects, and you'll see the "teaser amounts" given to get the project approved, and then how it snowballs from there. ABC actually carried a similar story last night, about the visitor center at the Capitol. That center would never have started (hopefully due to public outcry) if the real-cost had been told. We're a bunch of saps, or just powerless, to believe the costs we're presented when approving these projects. Even here you see proponents of giving the Big3 $25B and that will be enough. Well that $25B figure lasted what, 2 weeks, before it was revised - which way? UP. What a surprise!!! 
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...of GM as it is now. I also wouldn't want to be President as things are now.
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Replying to: lemko (Dec 03, 2008 6:49 am)
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Replying to: Mr_Shiftright (Dec 03, 2008 6:58 am) That is where it belongs. He promised the Big 3 and the UAW he would fix the problem if they voted for him. Paybacks can be rough. Especially when you don't have a clue on how our economy works. I hope he has advisers that know what to do. I see another big Carter type recession looming. |
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If, as everyone believes, that Toyota has the correct business model, then here is how I'd restructure GM. I'd match Toyota model for model: Toyota = Chevrolet Yaris = Aveo Notes: Ick. Aveo, while priced right, really doesn't compete. I'd rather federalize the Corsa, convert a plant here in the states to build it, and be competitive. Corolla = Cruze Notes: With the right engines, this is quite possibly a shoot out. The 1.4L turbo engine has the possibility of being world-class in terms of power and efficiency. Matrix = Vibe Notes: A no-brainer, other than rebadging the Vibe as a Chevy. Same car, same plant, though I wonder how long Toyota will want to continue this partnership. Camry = Malibu Notes: As I see it, the Malibu is already as good as, if not better than, the Camry. Not much to do here. Solara = G6 Coupe Notes: A niche market. Improve the build quality of the G6, rebadge it as a Chevy and sell 20-30,000 per year. Same with the convertible version. Avalon = Impala Notes: Rebadge the Impala as a Caprice or, as an alternative, rebadge the current Buick Lucerne as a Chevrolet. Prius = Volt Notes: Figure out how to bring the Volt to market without having it cost $2-3 billion for development. Make it a unique body style - the current pictures of the Volt make it look like the Cruze. I think folks are starting to equate hybrids with 5-door hatchbacks (Prius, new Honda Insight). Venza = SRX Notes: Decontent and rebadge the SRX as a Chevy to compete. Tacoma = Colorado Notes: Update the powertrains and build quality in the Colorado to be competitive. Tundra = Silverado Notes: Nothing to do here; Silverado is already competitive. RAV4 = VUE Notes: Drop the Equinox and rebadge the VUE as a Chevrolet. Next iteration of the VUE needs to lose several hundred pounds. FJ Cruiser = H3 Notes: Like the Solara, a niche market. May not matter, as I believe the FJ is slated for extinction. Highlander = Traverse Notes: Not quite direct competitors, but close enough. 4Runner = ??? Notes: With the demise of the TrailBlazer, there really isn't a direct competitor available from GM. Should there be? Sequoia = Tahoe Notes: None; Tahoe is competitive. Land Cruiser = Suburban Notes: Again, not a direct match up, but could be established that the Suburban is the "ne plus ultra" of the SUV set. Sienna = none Notes: GM has abandoned the minivan market. Why not bring over a people-mover from the European market and try again? I need to think about the GM equivalents to Lexus (Buick or Cadillac) and Scion (Saturn?) and will post them later. |
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Replying to: gagrice (Dec 03, 2008 7:32 am) You don't have to worry about a "looming" recession. It's here. November Sales Numbers are grim, but MINI is actually UP and Subaru is down just a few percent, and Lincoln is in a single digit decline, while most are down 30-40%. I wonder what MINI and Subaru and to some extent Lincoln are doing right to hold the line here? Anything that GM could emulate? |
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Replying to: Mr_Shiftright (Dec 03, 2008 7:52 am) And Subaru happened to introduce the new Forester at exactly the right moment, and it just happened to be an unprecedented hit. They have stolen Toyota customers for sure this year. But also their own customer base hasn't been too badly affected so far, at least not in California. It's mostly teachers, college professors, and their ilk that buy Subarus right? Subaru certainly has not had to pour on the incentives in the latter half of the year as the domestics and Toyota have. If I were a GM manager I wouldn't copy Toyota's lineup, they are down just as much as the market this year. All the biggest carmakers are bound to have a rough time in this type of economy. But if this current plan they have just released is the best my company can muster, I would resign today. This isn't a plan for major reform, it's just a slightly modified version of business as usual.
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Replying to: nippononly (Dec 03, 2008 8:09 am) MINI is just unique. There's nothing like it out there. You don't comparative shop a MINI. You either buy it or you don't. |
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Replying to: nippononly (Dec 03, 2008 8:09 am) A pretty good size subie dealer closed their doors a couple weeks ago in the boston area, that was a suprise. If GM wants to turn around their company in the near term, offer two brands: GM cars and GM trucks. from the GM aveo  , to the GM corvette, from the GM traverse to the GM suburban. Offer a escalade option on the suburban and the rest of the caddy lineup can fold into the new GM car division. Sorry, but the caddy brand doesn't have any prestige in the real world anymore (1 successful car model (the CTS) cannot sustain a whole division). Oh, while we're at it, give real names to cars, not acrynoms |
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