What can GM do?

[BigFig15]

I heard all this talk of GM planning on shutting down Buick or Pontiac, they lost a billion dollars in sales, GM employee discount to try to have people buy their vehicles, and they plan on laying off a bunch of employees in the next few years. How did a company this big get in this much money troubles? What can they do? Who is outselling GM now?
I hope they dont can Pontiac? If they do the GTP is going in storage for a long time hopefully it will be worth some money when Im like 40

[BNaylor]

Originally Posted by BigFig15

I heard all this talk of GM planning on shutting down Buick or Pontiac, they lost a billion dollars in sales, GM employee discount to try to have people buy their vehicles, and they plan on laying off a bunch of employees in the next few years. How did a company this big get in this much money troubles? What can they do? Who is outselling GM now?
I hope they dont can Pontiac? If they do the GTP is going in storage for a long time hopefully it will be worth some money when Im like 40

As a whole GM still sells the most domestic vehicles including SUVs and pick up trucks. However, the Japanese car makers are right on its tail. It has been predicted that Toyota will probably be the next GM within 5 years. US carmakers only have 56% market share domestically.

GMs problems are obvious. Poor quality and reliability, too high price for what you're getting, introducing new models that no one wants, discontinuing models that made money, putting too much emphasis on SUVs, and gross mis-management.



Thrasher CAI, DHP v1.0 ECU,
3.25 SC pulley, CAIT GMAF, Hi-Flow CAT,
u-bend delete, 160 TS,TB spacer,
MSD 8.5mm wires, Autolite 104 spark plugs,
Goodyear Gatorback Serp. & SC Belt,
Nitto NT555R Drag Radials

[jessep28]

There is also a lot of redundancy in the GM line. Heck, before the new GP's came out, you could basically get the same car in either a Pontiac, Buick or Chevy (for the most part).

I sense a brand consolidation coming soon. I have noticed that a lot of the Buick dealerships have picked up Pontiac and GMC (granted, they used to be Oldsmobile dealerships too).

Like with Oldsmobile, GM has had a lot of problems with Buick.

For a while, GM tried to revive the brand with no avail. I mean if you are 24, why buy a Buick Regal when you can get a Grand Prix instead?

[BNaylor]

Originally Posted by jessep28

There is also a lot of redundancy in the GM line. Heck, before the new GP's came out, you could basically get the same car in either a Pontiac, Buick or Chevy (for the most part).

I sense a brand consolidation coming soon. I have noticed that a lot of the Buick dealerships have picked up Pontiac (granted, they used to be Oldsmobile dealerships too).

Like Oldsmobile, GM has a lot of problems with Buick.

For a while, GM tried to revive the brand with no avail. I mean if you are 24, why buy a Buick Regal when you can get a Grand Prix instead?

I don't know of anyone under 40 y.o that ever bought a Buick brand new. And GM having a lot of problems with the new Buick model lineup is an understatement.



Thrasher CAI, DHP v1.0 ECU,
3.25 SC pulley, CAIT GMAF, Hi-Flow CAT,
u-bend delete, 160 TS,TB spacer,
MSD 8.5mm wires, Autolite 104 spark plugs,
Goodyear Gatorback Serp. & SC Belt,
Nitto NT555R Drag Radials

[wylie]

Free Trade hasn't help ether our market is unfairly flooded with foreign cars/products.
The Asian market only allowed only 3% of there national products to be imported.
Hows it possible that the north American market can compete with that?
.
.

[BNaylor]

Originally Posted by wylie

Free Trade hasn't help ether our market is unfairly flooded with foreign cars/products.
The Asian market only allowed only 3% of there national products to be imported.
Hows it possible that the north American market can compete with that?
.
.

I agree that it is unfair but the seed was planted a long time ago. The Japanese and Koreans appear to be slicker than us when it comes to strategic marketing and vision. They opened plants in the US and worldwide. A lot of the models are made or at least assembled in North America. There are kids that believe that Honda is as American as apple pie as a result. Can't speak for Canada, though. For a lot of them a Honda, Toyota, Nissan/Datsun was the family car.

In the end its all about supply and demand. They are supplying, big time, because of the demand. We created our own monster.



Thrasher CAI, DHP v1.0 ECU,
3.25 SC pulley, CAIT GMAF, Hi-Flow CAT,
u-bend delete, 160 TS,TB spacer,
MSD 8.5mm wires, Autolite 104 spark plugs,
Goodyear Gatorback Serp. & SC Belt,
Nitto NT555R Drag Radials

[wylie]

Ya you make some good points there, and its exactly the same here north of the boarder we're all under the same free trade crap.
And your right they have created jobs as well theres a huge Honda plant just north of Toronto here.And now that I think about it they do use allot of parts manufactured in north America.I guess GM is just being to slow to change hopefully they can recover before the vultures move in and destroy what's left.
.
.

[GPFred]

The other problem is GM is carrying a huge load via health care/retirement costs to the tune of 43 billion (I believe that was the amount I read) going out to retirees. The funding for that is only half what it should be, kind of like that of United Air Lines. Plus you added in the drop off in sales of SUV's due to high gas prices and you have a company in financial deep doodoo.

[jessep28]

I think GM just is seeing the worst of many horrors these big companies are running into.

Like the airlines, GM was carrying too much baggage in terms of inventory expecting a continuous high turnover. (only with the airlines, the baggage was airplanes since htey sell a service), Inventory is expensive and when you can't get rid of/use it, you have to lower the prices. That = lower profits.

Health/Pension benefits: GM like United treated many of its workers to a generous health/pension package. The problem with that is that you have a huge liability sitting on your books that you have to pay off. That looks bad and decreases your creidt rating. That makes bond issuance more expensive.

Many people blame the Japaneese corporations but its not like they snuck up yesterday. They are winning becuase a high quality product can be produced time after time. That coupled with a weak dollar is making some models cheaper. GM was simply not a slim enough corporation to adapt quick enough to the Japaneese. It's like Toyota is a car and GM is a tank.

[onstar]

didnt the korean and japanese govt, run some of these car companies more hands on than the american govt with the big 3 during the 80s?

[kustomkid54]

Originally Posted by bnaylor3400

I agree that it is unfair but the seed was planted a long time ago. The Japanese and Koreans appear to be slicker than us when it comes to strategic marketing and vision. They opened plants in the US and worldwide. A lot of the models are made or at least assembled in North America. There are kids that believe that Honda is as American as apple pie as a result. Can't speak for Canada, though. For a lot of them a Honda, Toyota, Nissan/Datsun was the family car.

In the end its all about supply and demand. They are supplying, big time, because of the demand. We created our own monster.



Thrasher CAI, DHP v1.0 ECU,
3.25 SC pulley, CAIT GMAF, Hi-Flow CAT,
u-bend delete, 160 TS,TB spacer,
MSD 8.5mm wires, Autolite 104 spark plugs,
Goodyear Gatorback Serp. & SC Belt,
Nitto NT555R Drag Radials

I think the trouble started back in the late 50's earily 60's. The big three throw ugly junk cars at us, and we bought them. "Made in the USA" was all the WWII people thought about. They weren't buying anything from anyplace but "home".
Why put time into something that you do have to. If you don't need to put money out for designers and new body styles, don't.
It may come to the point if something doesn't happen soon, you'll all be driving rice burners. You notice I said YOU all will be. I will be driving a classic.

[theblurr87]

Originally Posted by kustomkid54

I think the trouble started back in the late 50's earily 60's. The big three throw ugly junk cars at us, and we bought them. "Made in the USA" was all the WWII people thought about. They weren't buying anything from anyplace but "home".
Why put time into something that you do have to. If you don't need to put money out for designers and new body styles, don't.
It may come to the point if something doesn't happen soon, you'll all be driving rice burners. You notice I said YOU all will be. I will be driving a classic.

so kid, you think motorized wheel chairs will be called "classics" by then.. interesting...

[kustomkid54]

Originally Posted by theblurr87

so kid, you think motorized wheel chairs will be called "classics" by then.. interesting...

With a flag, leather bags, crome tank and spiners, Hell yes. How much more class do you need?

[BNaylor]

Originally Posted by kustomkid54

I think the trouble started back in the late 50's earily 60's. The big three throw ugly junk cars at us, and we bought them. "Made in the USA" was all the WWII people thought about. They weren't buying anything from anyplace but "home".
Why put time into something that you do have to. If you don't need to put money out for designers and new body styles, don't.
It may come to the point if something doesn't happen soon, you'll all be driving rice burners. You notice I said YOU all will be. I will be driving a classic.

Yeah Jim, just think about it. The same people that built those ugly junk cars "Made in the USA" from the 1960 - 1980 era are the ones retiring and GM is trying to figure out how to pay them out of the so called 43 billion problem mentioned by others. Its ironic.

I looked down my street today and noticed that about every other house has a rice-burner car sitting in the driveway. Hell! even I've got a rice-burner motorcycle, but thats a whole different issue.




Thrasher CAI, DHP v1.0 ECU,
3.25 SC pulley, CAIT GMAF, Hi-Flow CAT,
u-bend delete, 160 TS,TB spacer,
MSD 8.5mm wires, Autolite 104 spark plugs,
Goodyear Gatorback Serp. & SC Belt,
Nitto NT555R Drag Radials

[kustomkid54]

Originally Posted by bnaylor3400

Yeah Jim, just think about it. The same people that built those ugly junk cars "Made in the USA" from the 1960 - 1980 era are the ones retiring and GM is trying to figure out how to pay them out of the so called 43 billion problem mentioned by others. Its ironic.

I looked down my street today and noticed that about every other house has a rice-burner car sitting in the driveway. Hell! even I've got a rice-burner motorcycle, but thats a whole different issue.




Thrasher CAI, DHP v1.0 ECU,
3.25 SC pulley, CAIT GMAF, Hi-Flow CAT,
u-bend delete, 160 TS,TB spacer,
MSD 8.5mm wires, Autolite 104 spark plugs,
Goodyear Gatorback Serp. & SC Belt,
Nitto NT555R Drag Radials

I don't even count bikes. But I will tell you this. Anyone driving a rice burner should be some place besides here. We have been looking at a lot of jobs moving out of the country. Soon, the only jobs will be over seas, or just south of you.