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What if you were in charge of GM?

874 messages,  Last post on Oct 28, 2009 at 10:20 AM

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What is this discussion about? Automotive News, Classic Cars, Concept Cars, Future Vehicle


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#97 of 874
Re: cross-posted brand cutting [cooterbfd] by fezo
Nov 30, 2008 (1:51 pm)
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Replying to: cooterbfd (Nov 30, 2008 9:23 am)

Yeah, that and if you sell a division to someone who is going to actually make the car? I mean Saab has its own plants for the most part but Saturn and Pontiacs are made at regular GM plants.
#98 of 874
Re: cross-posted brand cutting [fezo] by Mr_Shiftright HOST
Nov 30, 2008 (6:16 pm)
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Replying to: fezo (Nov 30, 2008 1:51 pm)

Unlike some types of manufacturing, downsizing in the auto industry is enormously expensive. We think of it as "cost-saving" but initially it is "cost-producing". Any kind of panic-slashing may turn out to be the last nail in the coffin. As evidence of the irony of downsizing, consider in automotive history that the last cars produced by dying companies were often among their most magnificent efforts. (Auburn, Pierce-Arrow, '56 Packard, Studebaker Avanti). They had talent and engineering and even factories, but no capital.
#99 of 874
Re: cross-posted brand cutting [Mr_Shiftright] by gagrice
Nov 30, 2008 (6:35 pm)
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Replying to: Mr_Shiftright (Nov 30, 2008 6:16 pm)

They had talent and engineering and even factories, but no capital.
 
Sounds like GM. Let em die before we waste $Billions trying to resuscitate them.
#100 of 874
Re: cross-posted brand cutting [Mr_Shiftright] by dtownfb
Dec 01, 2008 (6:59 am)
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Replying to: Mr_Shiftright (Nov 30, 2008 6:16 pm)

Absolutely correct about the cost of reducing being high but this where you ask the government to help with the "bridge" loan. Develop a consolidation plan that creates a viable company that can be profitable with US sales at 12 million. Then you ask the government to help fund this plan since you will need cash to buy out dealers, suppliers, etc.
#101 of 874
Re: cross-posted brand cutting [dtownfb] by Mr_Shiftright HOST
Dec 01, 2008 (8:37 am)
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Replying to: dtownfb (Dec 01, 2008 6:59 am)

Question is: (to which I don't know the answer)....is GM a viable business or is it, as Thenation.com recently said about AIG and Citigroug.....an "insolvent mastodon"?
#102 of 874
Re: cross-posted brand cutting [Mr_Shiftright] by dtownfb
Dec 01, 2008 (10:39 am)
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Replying to: Mr_Shiftright (Dec 01, 2008 8:37 am)

In it's present form, no GM is not a viable company. I don't believe the current management can turn it around either. As i posted on the other GM news forum, they need to change their business model so that they build cars based on demand not capacity. Their current contracts with the UAW and suppliers prohibit this. Even with shutting down plants, they still are on the hook to pay the workers and suppliers for cars and trucks that are not being produced. Couple this with the rebates they need to offer to move their car, I can't see how they can make any money in the foreseeable future no matter how many cars are sold in the US.
 
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.
#103 of 874
The New GM by boomchek
Dec 01, 2008 (1:52 pm)
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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.
#104 of 874
Re: The New GM [boomchek] by lemko
Dec 01, 2008 (1:57 pm)
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Replying to: boomchek (Dec 01, 2008 1:52 pm)

Like your plans for Cadillac and Buick - however "Special" was always the low-end Buick. It would be an odd name for a Buick halo car.
#105 of 874
Re: The New GM [lemko] by boomchek
Dec 01, 2008 (2:02 pm)
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Replying to: lemko (Dec 01, 2008 1:57 pm)

Thanks, I think both brands can be sold side by side with the right products and marketing.
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.
#106 of 874
Re: The New GM [boomchek] by carnaught
Dec 01, 2008 (2:38 pm)
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Replying to: boomchek (Dec 01, 2008 1:52 pm)

"Summary of casualties:
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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