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Automotive News & Views What if you were in charge of GM?
724 messages, Last post on Jul 04, 2009 at 7:22 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Before I got into the real restructuring, I would do the following to survive right now (as CEO of GM) 1. ask the government to allow GM to close unprofitable franchises at little-no cost and relatively quickly. This will eliminate the "too many dealers" issue rather quickly. 2. Close Hummer. All Hummer dealers sell some other GM franchise anyways. And lets face it, nobody on Planet Earth is going to want to buy Hummer as a brand... Hummer must still cost GM some sort of cash every month to maintain. 3. Cut all senior level management salaries to $1/year, with bonuses exclusively in GM stock. Give them 0 severance if they choose to leave. This is more symbolic than anything else, but at least it'll serve as a nice wake-up call for upper management. 4. delay all product development for another 12 months, minimum, including the Volt program.
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Replying to: jchan2 (Nov 26, 2008 5:34 pm) |
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Replying to: jchan2 (Nov 26, 2008 5:34 pm) They do need to keep up on product development. They are only now catching up with the market. |
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GM Said to Study Shedding Saab, Saturn, Pontiac to Win U.S. Aid (Bloomberg) Maybe they hope Congress will pass a law letting GM get rid of the Pontiac dealers without having to pay them off (a bankruptcy plan without having to file Ch. 11). Congress gave the Alaska Pipeline a pass from NEPA laws and rules, so I suppose it's possible.
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Replying to: steve_ (Nov 26, 2008 6:59 pm) I guess every bit helps.
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Replying to: fezo (Nov 26, 2008 7:09 pm) |
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Replying to: fezo (Nov 26, 2008 7:09 pm) |
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Replying to: steve_ (Nov 26, 2008 6:59 pm) Hopefully Gettelfinger will be as good as his word and the Jobs Bank can be dropped immediately. In that case they could close plants right away, and dropping the brands would be meaningful in reducing a HUGE amount of ongoing costs associated with maintaining those brands.
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Replying to: nippononly (Nov 29, 2008 1:29 pm) What good would dropping brands do if the dealers need to be paid off??? Dropping 1 brand may work, as they can tell the BPG dealers they still have 2, or offer Saturn dealers BPG, but to rid them all would cost billions.
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Replying to: cooterbfd (Nov 29, 2008 2:29 pm) I'm guessing that in most areas where there are Saturn dealerships that there are already Pontiac-GMC-Buick. It's a tough situation. I don't what it costs GM to have a dealership as opposed to supplying x number of cars. If eliminating a brand saves money in and of itself then Pontiac is pretty easy to eliminate because there aren't many Pontiac dealers that don't also sell the others.
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