Out of Time, Out of Money, Out of Options GM Spirals Into The Abyss

Keep spiralling.

— vladyxa (View Profile)

Posted on 12/3/2008 2:36:06 PM | reply to this comment | Votes: -2   

From the article:

"In exchange for the request for a total of $12 to $18 billion in loans GM has offered to cut jobs, plants, brands, executive pay, and renegotiate debt."

In other words, they will still be making piece of $hit cars, and keep unions.

Ohh... may be they just should keep spiralling.

— vladyxa (View Profile)

Posted on 12/3/2008 2:41:50 PM | reply to this comment | Votes: 1   

Nice to see that GM has finally figured out what analysts have been saying for years.

— sold2early (View Profile)

Posted on 12/3/2008 3:14:23 PM | reply to this comment | Votes: 7   

How about ...improve quality of cars, enhance brand perception, boost revenue. There is only so much "cutting" they can do. At some point, they need to "grow" in order to make money. And, they definitely need to get rid of the UAW - it is a dying (if not already dead) breed.

— BSBB (View Profile)

Posted on 12/3/2008 4:07:54 PM | reply to this comment | Votes: 6   

The Big 3 are going to get their money, the only question is how much and under what terms. The reason? The Dem's simply can't turn their backs on the Unions who helped to elect Obama.

It has nothing to do with business plans or product innovation, it's all politics my friends.

— thstone (View Profile)

Posted on 12/3/2008 4:16:42 PM | reply to this comment | Votes: 5   

"PLEASE Uncle Sam, give us some money so we can survive for another 6 months before we're back in the same position. We just need the new money so our execs can have a bonus before GM is REALLY dead!"

-GM

— bigmotov (View Profile)

Posted on 12/3/2008 5:19:53 PM | reply to this comment | Votes: 5   

So much for unbiased journalism!! How to spin everything into negative by ignoring the actual facts of the proposal:
Bankruptcy is not an option as no one will buy a car from a bankrupt manufacturer & it would cost a lot more money to chapter 11 than the loans asked for.
No bonus's for GM execs. They're going to take the $1 for a year as payment.
They're going to reduce vehicle models & brands. Which will help them improve quality further.
Many of the new GM product from the last couple of years has getting accolades for being best in class. The major issue for GM is changing public perception about their new products and replacing the old products as quickly as possible.

Globally many major automotive manufacturing companies are asking for and getting government support. It's just not really feasible to have a 30 - 50% drop in sales in just 3 months and not have difficulty staying afloat.

— aussiemonster (View Profile)

Posted on 12/3/2008 7:12:29 PM | reply to this comment | Votes: 3   

I say this is a long time coming. Let's see, Give GM all that cash to continue to burn along the same path building garbage. Let's do this, get rid of all the "brands" since there all the same and keep the cars worth saving under a General GM nameplate. One dealer serves all! Too many useless cars trucks and SUVS, I think they deserve to fail but who am I. I'll continue to buy used foreign cars made in the USA. Why would I buy an HHR built in Mexico when I can really support american workers buy getting cars made by American workers like a civic in Tenn.

— drldtw (View Profile)

Posted on 12/3/2008 7:23:46 PM | reply to this comment | Votes: 1   

If there is no clear direction as to how the big three can be profitable and repay all its obligations, or what laws to pass or modify regarding labor unions, and the government keep bailing them out, the whole country will fall financially before Obama's term ends. Its just logic.

— woood (View Profile)

Posted on 12/3/2008 10:15:21 PM | reply to this comment | Votes: 1   

IMO, be bankrupt, fix all problems necessary to become a profitable manufacturer, no choice but to sacrifice public perception for now if this is whats needed to survive the next decade. Also, American cars have a certain niche market where they define the actual sales volume of the big three. Even if the big three are under chapter 11, those buyers will still buy because they have grown accustomed to driving and using American cars. This will give the big three ample time to cut, remove, modify their business plan to be similar or more efficient than those of the foreign makes manufacturing in the US. Many new upcoming models from the big three look promising and the sooner they realize what needs to be done with an iron hand, the sooner they can reorganize for the next upturn in the global economy.

— woood (View Profile)

Posted on 12/3/2008 10:23:39 PM | reply to this comment | Votes: 0   

Ford, Chrysler and GM's contributions after 9/11

An interesting commentary...You might find this of interest:

'CNN Headline News did a short news listing regarding Ford and GM's contributions to the relief and recovery efforts in New York and Washington .

The findings are as follows.....

1. Ford- $10 million to American Red Cross matchi n g employee contributions of the same number plus 10 Excursions to NY Fire Dept. The company also offered ER response ! team se rvices and office space to displaced government employees.

2. GM- $10 million to American Red Cross matching employee contributions of the sam e number and a fleet of vans, suv's, and trucks.

3. Daimler Chrysler- $10 million to support of the children and victims of the Sept. 11 attack.

4. Harley Davidson motorcycles- $1 million an d 30 new motorcycles to the
New York Police Dept.

5. Volkswagen-Employees and management created a Sept 11 Foundation,
funded initial with $2 million , for the assistance of the children and victims of the WTC.

6. Hyundai- $300,000 to the American Red Cross.

7. Audi- Nothing.

8. BMW- Nothing.

9. Daewoo- Nothing.

10. Fiat- Nothing.

11. Honda- Nothing despite boasting of second best sales month ever in
August 2001

12. Isuzu- Nothing .

1 3. Mitsubis hi- Nothing .

14. Nissan- Nothing .

15. Porsche- Nothing . Press release with condolences via the Porsche website.

16. Subaru- Nothing .

17. Suzuki- Nothing .

18. Toyota- Nothing despite claims of high sales in July and August 2001.


Whenever the time may be for you to purchase or lease a new vehicle, keep this information in mind. You might want to give more consideration to a car manufactured by an American-owned and / or American based company. Apart from Hyundai and Volkswagen, the foreign car companies contributed nothing at all to the citizens of the United States ... It's OK for these companies to take money out of this country, but it is apparently not acceptable to return some in a time of crisis. I believe we should not forget things like this. Say thank you in a way that gets their attention..

— bestofallcad (View Profile)

Posted on 12/3/2008 10:37:58 PM | reply to this comment | Votes: 2   

This is exactly what I think. Those American car owners will still buy American cars no matter what. This is the true measure of the volume that the big three is looking at. In effect, they must restructure their plants output according to this sales volume and proceed from there.

— woood (View Profile)

Posted on 12/3/2008 10:54:44 PM | reply to this comment | Votes: 2   

Just like the unions, here is the fact, law notwithstanding:

Bankrupt company = NO union and NO dealerships.

Some have to go or they ALL go.

— 09CTSVforMe (View Profile)

Posted on 12/5/2008 9:14:59 AM | reply to this comment | Votes: 1   

Show of hands;

Who actually read the GM proposal?

I did, and it is what they should have brought the first time they went to DC.

The first question from Congress should be, "Ok, good. HOW will you acheive these goals, how FAST will you acheive them, and please answer with specific numbers and dates."

A good answer (1 of many possible)- "We'll have 500 fewer dealerships in major metropolitan and suburban areas by the end of January 2009."

— 09CTSVforMe (View Profile)

Posted on 12/4/2008 10:29:11 AM | reply to this comment | Votes: 1   

check out this link for a good analysis of why GM is drowning...



http://money.cnn.com/2008/11/21/magazines/fortune/taylor_generalmotors.fortune/index.htm?

— XYZZ (View Profile)

Posted on 12/5/2008 6:28:59 AM | reply to this comment | Votes: 1   

comment by "dirtyappliance" at the motortrend forum, who provided the link:

"I was in the audience at GM's Tech Center in Warren, Mich., on the day in October 1999 when GM revealed the production version of the Pontiac Aztek to the press for the first time. The company was positioning it as a "lifestyle support vehicle" that was the "most versatile vehicle on the planet." With our curiosity piqued, we watched drapes pulled off - and the room went strangely silent. The Aztek bristled with gills, creases, roof racks, and plastic cladding - and that was the good news."

— XYZZ (View Profile)

Posted on 12/5/2008 6:30:57 AM | reply to this comment | Votes: 1   

excerpt from the article:

Under Smith and Stempel, and future CEOs as well, GM was in perpetual turnaround. Time after time it promised that it had finally learned how to make cars that people really wanted to buy and would have them at dealers soon. One critic called it the "mañana company." Trouble is, even when GM got the newest 25% of its product line to be competitive, the remaining 75% had to be disposed of at fire-sale prices.

— XYZZ (View Profile)

Posted on 12/5/2008 6:32:20 AM | reply to this comment | Votes: 1