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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: steve_ (Nov 26, 2008 5:59 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 12:29 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 1:29 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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Replying to: fezo (Nov 29, 2008 1:48 pm) Unfortunately, it's probably too late for that.
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Replying to: cooterbfd (Nov 29, 2008 2:05 pm) I do hope they are able to put a realistic package together to keep things going but the sacrifices will be all around.
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Replying to: fezo (Nov 29, 2008 2:28 pm)
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Replying to: cooterbfd (Nov 29, 2008 2:31 pm) I'll be very curious to see how they come back to Congress. It sure looks like Ford doesn't want to do anything other than making sure GM doesn't go chapter 11 because that might bring Ford down with it (of course along with Chrysler). Ford is trying to protect the Ford family so they can still run the show.
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Replying to: fezo (Nov 29, 2008 1:48 pm) It's part of the tough decisions GM needs to make. They have to show how they are going to become a viable company. This is part of the issue. If this is part of their plan, I think Congress will support it and help finance their turn around. The truly unfortunate part is thousands of job will be lost and it's probably too late to save them. |
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Replying to: cooterbfd (Nov 29, 2008 1:29 pm) Well, I was thinking they could sell the Saab and Saturn brands wholesale - no need to pay off any dealers there. I don't know about Pontiac, but then again I'm not the one suggesting it, GM is as part of their bailout plan.
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GM took the Saab and Saturn brands and sold them together as a package- the dealer networks of the 2 are pretty complimentary, and the two brands could have some degree of economies of scale as an independent entity. GM could even do an IPO, spin off the two brands, and retain maybe 33% in the new company. Then again, an IPO in this market is the kiss of death. Saab and Saturn were the last two to be integrated into GM- wouldn't this also mean that they would be the easiest to divorce from GM? The complication here is so many Saab dealers have become Cadillac-Hummer-Saab... |
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