The Case for GM - Rick Wagoner Discusses Government-Backed Loans for Automakers
In today’s installment of our “The Case for GM” video series, Chairman and CEO Rick Wagoner explains the importance that Congress provide loans to automakers in order to meet more-stringent fuel economy mandates. Please let us know your thoughts and keep checking in as we continue to respond to your comments. For a transcript of today’s video, click here. - Christopher Barger, Director, Global Communications Technology
- Posted in Business, The Case for GM
Bill Henderson
I hope GM is not waiting till the Volt sells hundreds of thousands of units to make some money - otherwisw you won’t get there.
why doesn’t GM offer cars with downsized turbo-charged or super-charged engines which should be able to get 15% to 20% better gas mileage and these would be more affordable and therefor more sellable! This would keep cash coming in and get us started reducing our gas consumption.
I figure it will take about 15 million Volts to make an appreciable dent in our gas consumption. That will take at least about 15 years to achieve. We need to do something in the mean time or the cost of gas will put you and the U.S. in serious trouble.
Please offer super-chared downsized engines which will get improved gas mileage and cost much less than the Volt. You will need these as much as we do to have some cash flow until the Volt is sold in “numbers”
Long time GM fan.
edvard
I would take as much advantage of this opportunity as possible, which I’m sure you’re doing. But I’d like to make some suggestions as a consumer who wants certain types of cars. First of all, as mentioned before, scrap the hydrogen program. It is not viable, practical, or sensible in terms of what it takes to produce hydrogen. Plus the technology is costly.
The obvious direction to me is battery development. To me, the thought that battery powered cars could replace those powered with gasoline is becoming more and more realistic. The technology has gone a long way fast. This makes me think that energy companies would be best served by either developing, or co-developing battery systems for new cars. Perhaps one option would be to contact these huge companies who are at the moment swimming in cash, and pursue developing battery technology further, developing a sort of shared partnership in which they would share part of the profits and ultimately shift some of their business to technology that could ultimately replace oil. It would be a cross-beneficial mutual relationship.
The implications of new industries focussed on developing alternative energy seems like a logical one. Whole new businesses could be formed that specifically develop modern power components for vehicles. Think about how the tech industry in Silicon Valley made it the richest economy in the country. The same can be said for new drivetrain development, which could ultimately help revitalize some of the area economies of states like Michigan, Ohio, and other states that have had a slow downward spiral as manufacturing dwindles away. With battery technology, the combination of research and development and manufacturing could help bridge the void older manufacturing areas currently lack.
I’m picturing lower cost, practical electric cars. Vast improvements to existing models like the Volt such as extended battery range. Small diesels, and even super-efficient gasoline cars. The US auto industry has a golden opportunity to reinvent itself, which precisely what it must do to survive.
Joe
Rick (or anybody),
Recently there was an article out that quoted Mr. Wagoner as saying that the “worst [in terms of layoffs and cost-cuts] is behind us.” And it went on to say that GM hopes to return to profitability in 2010. Could somebody elaborate on that?
Basing this on the recent and future products, and the Labor deal set to kick in soon…I’d like to see GM back in the black.
Thanks.
Christian de Saint Preux
If it is open to all automakers that invest in the US why are the “imports” angry that the US automakers are “getting” this?
Hey.. i mean.. no problem here… Gm is american, why should the US help any German automakers or Japanese for that matter.
Sara
Government backed loans make sense when the governement is requiring companies to meet certain mandates…however…why not let auto companies battle it out in the market. He who makes the most fuel-efficient and best-designed vehicle wins! With gas prices this high, there is no longer a worry that the consumer demand won’t be there.
Josh Oliver
Considering that GM is pushing the Volt ahead with technology sourced from foreign battery makers are we going to move from a nation that depends of foreign oil to a nation that depends on foreign batteries?
It’s really the same thing in the end. Instead of our money going to the Middle East, it will instead go to Japan and China, whom by the way we as the United States owe Billions to China already.
With that said, does GM plan to develop and produce their own batteries for not only the Volt, but for other vehicles going forward?
Gerard
I share the pragmatist’s view that the best way for the United States to reduce its energy consumption, especially in the area of oil, is to heighten the expense through taxation. Of course, taxes are a hated force in our democratic society.
Congress didn’t share that view, instead choosing an avenue acceptible to the taxpayer: raising the demand on automakers. I live in California, so uneducated politicians making unreasonable industrial and commerce mandates is nothing new to me. The business media’s perception of this loan request isn’t sympathetic. “Another bailout for out-of-touch Detroit” is the mantra.
GM has to prove to the buying public that it has the ingredients for a better future. The Volt is the make-or-break case. There will have to be some sort of instant rebate to slash the projected $40,000 price tag. If General Motors can’t work out a government discount to do that, this new machine won’t have a long shelf life.
GM has to make consumers and critics believe they are witnessing a step in a fresh direction. Some of the business decisions, like the pricey hybrid-electric pickups and sport-utes, made no practical sense from a consumer point-of-view. From an industrial standpoint, it was a waste of excellent research, development, and engineering. The products are terrific; the costs aren’t. In the short- and mid-term, building class-leading small cars would be a critical boost for the company. I have hope for the Cruze (and an improved Astra) as being the way forward. Of course, I’d prefer a Camaro, but…
Greg Lins
The quickest way to maximize fuel efficiency is to simply reduce engine sizes. Sure, Americans may not be able to accelerate to 60 in under 6 seconds, but really, is that necessary?
If all manufacturers are subjected to the same fuel efficiency standards, then manufacturers will move as swiftly as possible to develop competitive solutions for achieving those standards. I, for one, do not believe that the government is capable of determining which approaches are better than others, and therefore we should not have the government involved in anything more than establishing the target goal.
If GM finds that investment in new technologies are the best approach to meeting the goals, that’s great. If GM finds that simply reducing the power of each engine is a better way to go, that’s fine too. If the targets are sufficiently aggressive, it should spur manufacturers to make progress on both fronts. The companies that develop solutions that meet the targets while managing to remain desirable in the marketplace will be the winners. You don’t need my money to fund your approach - free enterprise will do that for us. I would like to see automotive CEO’s step away from ANY government funding on this issue, leaving a competitive landscape that will drive innovation.
Thanks
Edward Hayes
Rick,
Thanks for clearing that up, there is a difference between bailout and a deal on a mutually set goal to increase fuel efficency with an investment package as part of the deal.
There is great effort, progress, and interest on energy independence like never before. The conversation is picking up concerning energy independence within 10 years and possibly a financial effort of $150 billion to see that goal ralized. Along with new committments from GM and the resulting competition from other automakers we are indeed seeing progress.
I am waiting for the first energy magazine that is dedicated to the reporting and coverage of these new drivetrains and the focus on endeavors to energy independence.
So in the end I would like to know what this means for Koskata, hydrogen, hybrids, electric, ethanol, diesel, and natural gas efforts and the tailoring of designs like the Volt and Flextreme that announces to the consumer what these cars are made of. Does this mean that we can now tailor designs of vehicles to specific drivetrains? Can the next series of hybrids have unique designs? Can GM now invest in the Chevrolet Beat, Trax, and Groove? Will there be more joint ventures with BMW, Chrysler, Ford, and Mercedes?
Bottom line…
With all these new technologies it may be a new paradigm, but one thing will never change. The automobile industry is still an expensive fashion show fashioned from steel.
We may capture the customer with exotic small cars, the newest gagets and design but it still comes down to that inspirational drawing on a napkin, and its rendering in clay.
Fastlane short…
The race to the bottom for the smallest car still says the same thing in the customer’s eyes, ” I am the first to the top.”
But now the top is the bottom, and the bottom is the top.
Chip
First off, I’d like to say, I appreciate this effort greatly. Connecting directly with consumers (although I hate that word — I consider myself, dare I say, a person) in an engaging dialogue is embracing the best of the internet and new media. Christopher, thanks for “taking this to the streets.” Kudos for the digital perspective.
However, I’d like to see Mr. Wagoner and other GM Execs speak with more candor, less preparation and beyond the boring talking points. What has he said that hasn’t been said in any number of press conferences/releases, etc.? Loosen the tie, roll up your sleeves and let us know what’s really going on. In its current state, this is totally unrelateable. Yes, Corporate America is buttoned up, stuffy and its hard to change that culture, but let’s be real!
Tony Puhalski
Rick Wagoner
I hear you talk about challenges, tough times, and doing things right, well your getting caught up in the moving forward technologies and forgetting about what got you hear ” making a good vehicle and customer satisfaction’.
You will have to excuse my grammar and writing ability, I just an equipment operator without a lot experience with the pen or keyboard.
My first new vehicle was a 1972 Camaro and have owned GM products ever since, in my driveway and garage now sits a 2002 35 anniversary ss Camaro. 2004 Chevy 3500 pickup, 2004 Tracker. and was seriously thinking about a new Cadillac in the new future. I think GM makes the best style vehicle in the market but I have some big concerns that have not being address properly, in fact I am so dissappointed with the responses I have gotten from GM that I will be switching Auto makers in the future and will not purchase another one of your product ever.
I not writing about the concerns, they are logged on your Customer Satisfaction phone line if you’re interested. I only letting you know this because I have being a supporter of your vehicles for so long that I owe you this. What I would love to do is stand in front of your Corporate Directors or Union Reps and give them some insight as to what is going on why they are experience tough times beside the economy situation.
A lost customer
Sheth
Josh,
Where are you getting your information about GM’s battery suppliers? My understanding is that they are working with US firms to develop the battery for the Volt. Part of the reason the Japanese brands are ahead on hybrids is that Japan has a lot of the battery making infrastructure and knowledge that the US lacks. Ford complained in the past that Toyota cornered the market on Japanese sourced batteries for hybrids and made it difficult for competitors to get access to those batteries. I believe GM is working to make sure they can get their batteries from the US and perhaps they will strike up some exclusive agreements to limit competition in the early stages.
There is a big difference between a bailout and a low interest loan with detailed stipulation. The fact that many Americans and reporters are calling this a bailout shows how ignorant people are these days. The automaker loans are nothing like the massive financial bailout being proposed in scope or intention.
What’s funny is that many people have a problem with government largesse when GM is the recipient but there is little comment when foreign automakers line up huge subsidies from Southern states to build or expand plants. It’s not uncommon for hundreds of millions to be offered as an incentive for a new auto plant these days and most new plants built in the US are built by foreign automakers.
Dan
I am someone who does not believe that the gov. should be spending billions of billions of dollars but this I am 100% behind! This is a loan that will be repaid so people should not even care, it will be paid back and because of this you will be able to get a energy efficient car! I am happy for you GM (and other US automakers!)
http://www.ChevroletVolt.org - Fan/News site
A new GM employee
As a new employee, I am inspired by colleagues and also people in stories associated with our company’s 100-year history on a daily basis. I’m sure we’ll thrive by working hard and offering products that mean something to each of our customer. This is my first comment on this blog and I hope it is worth reading.
Two questions about our strategy in the emerging markets.
1. Given the global financial situation, how are we financing new programs in these markets? Are we pushing hard to get investments from local partners/governments?
2. Have we learned the lesson that consumers in emerging markets are much more sensitive to fuel efficiency and quality than we are (or used to be) at home? GM entered China more than 10 years ago and has led the Chinese market for several years, but is now losing grounds to Japanese competitors for fuel economy and to German competitors for quality. The Korean-designed lineup is also becoming less intriguing. At home, we have loyal customers that proudly buy America; but we don’t have that tie in these markets.
I hope that Cruze and Volt are made globally available as soon as possible as they will send a clear message to consumers around the world that GM cares about fuel efficiency and quality and our products are truly globally designed. Technologies of this kind should be really positioned not only for the domestic market but also as a global push.
We are relying more and more on markets outside of the U.S. and are making remarkable progress, but to keep the leadership positions in China, in Russia, and anywhere, fuel economy and quality should never be traded for short terms gains. We have already learned this lesson at home. In the mean time while building quality products, we should explore various opportunities of collaborations with interested local entities if financial trouble here at home hinders our growth around the world. Lastly, there should also be something at our Japanese competitors which we could learn, after all they became global companies earlier than us.
Uli
Simple proposal:
Implement significant fuel taxes (in Europe we pay $8 per gallon).
Use the proceeds for heavy tax credits to the benfit of Volt-buyers (similar products of course too).
Guess what - fairly soon the consumption and hence dependency on foreign oil would go down and air quality would go up. But yes - it won’t come for free.
edvard
One last comment in consideration of the loan. Perhaps another way to benefit both GM and the consumer would be to offer incentives and price cuts on the Volt. I’ve stated this earlier, but I firmly believe that the 40k price suggested for this car is much too high. No matter how revolutionary it is, if Toyota has a plug in Prius that even though might get less MPG, yet costs 10-15k less… people will but it over the Volt and probably by a large margin. There needs to be a way to lower the cost of the Volt to a more reasonable level. Otherwise, I fear it will simply be a small niche vehicle much like the EV1 was.
Eric Planey
Rick and Bob -
Congrats on your first 100 years. I think, after seeing your sales numbers today, that its time for either Pontiac or Saturn to shut down. I think it should be Saturn.
It seems to me that Pontiac and Saturn have overlap in their portfolio and their mission statements. Saturn is now suppose to be euro-esque with products that are tight, good handling, smaller, and command a premium for thier size. Pontiac is suppose to be the performance division. Recently there was talk of an all RWD-Pontiac, but given gas prices we know where that is heading.
This is why I think Pontiac could be the division that is sporty euro-performance. I on this blog have harkened many times about the 1983-1986 Pontiac 6000 STE, an A-body that made Car and Driver’s 10 best 3 years straight. It was compared to the Audi 5000 then. Likewise, the G8 has been compared to the BMW 5-series, though its a bit more muscular in appearance. But given demands from dealers for smaller cheaper cars, Pontiac must put out Aveo rebadged G3s, which dilute the brand. Given that the Outlook will die a slow death now with the Traverse, and that GMC is getting a Vue, there is little reason why Saturn should exist. The next Aura could be the next G6, its that nice of a car. If the Astra was in Pontiac showrooms, and called a G3, it would sell 4x as many than sitting in a Saturn dealership. It would be painful to get rid of all those Saturn dealerships, I believe. But they are hurting each other. Good luck in trying to figure it all out!
Eric
motorman
Uli you should know that in the USA some people drive 100+ miles a day just to get to work,this is not europe where a 300 mile trip requires a passport. We drive 400 miles round trip just to get to our summer place in the mountains so $8 a gallon gasoline caused by added taxes will cause a civil war in this country.
edvard
Uli,
To add to what Motorman said, the problem in the US is that the entire infrastructure is built around freeways. Most people live in suburbs far from the cities and commute in to work. There are several reasons they do this, one being that most major cities are now very costly to buy houses in, thus the suburbs offer more affordable housing. Secondly, Americans tend to like large houses and yards.
But the bottom line is that most workplaces are concentrated in one area, housing spread far and wide around them. To me, a better long-term solution for the US would be to take more advantage of telecommuting. it seems ridiculous that I commute 85 miles a day just to sit in a cubicle and send email back and forth to the boss sitting several cubicles over from me. The exact same work could easily be done at home, or anywhere across the country for that matter. Most of the US is totally underutilized and vacant. The majority of the populace lives crammed on the coasts. If most who work in large cities could work from home, that alone would cut down driving by a huge percentage.
So sometimes the problem is societal. I vote for updating our working environment rather than trying to tax the heck out of fuel.
M STEPHEN
Help is needed now! GM and Ford
As Americans there is no better time to support our American auto companies. They have employed tens of thousands of Americans over the past 100 years. They have brought us from the horse and buggies age to driving your girlfriend on your first date, to driving your wife to the hospital for your first child or going on a coast to coast road trip for vacation . We cannot turn our backs on these American institutions now. If these companies fail it will be from are own doing for turning are backs on them and this will cause one of the biggest financial disasters in our history. Our president and congress will spend 700 billion dollars on bail outs just to save there own nest eggs in the financial market they have invested in plus the greedy CEO’s of Wall street. Now we have the presidential candidates spending millions dollars for slanderous campaigns against each other when the millions of dollars spent on these TV adds could be spent to help the less fortunate. Government employees do not have the same problems we have when it comes to their retirement , pensions, healthcare and social security. Very little has been brought up about how these American auto companies will get the low interest LOANS (not bail outs) that are desperately needed. The American auto companies are trying to do the right thing. We need to come together as American’s and support them. Silicone valley, Ca has spent 60 million trying to build there own electric cars at a cost of $110,000.00 per car. All for the bragging right to bring Detroit down. This is so sad as an American to see. If they would just work together it would be cheaper and quicker to produce alternative fuel transportation. Trying to compete with Detroit with over 100 years experience doesn’t make to much sense. We need to work together as Thomas Edison and Henry Ford did many years ago. Part of the problem is all about ego’s and greed. We are the greatest nation on earth. I have lived in Michigan my whole life and I’m proud of being in the auto capital of the world. I travel all over the world and it is always great to put my feet back on American soil when I return. I have for the past 40 years and always will drive American cars. There is nothing like driving a Chevrolet or Ford and having that American dream . I just pray that all Americans do the right thing. This is not like Johnny Carson leaving the Tonight show and having that sad empty feeling. This is your birth right and will be our legacy for generations to come. We need to show those short sellers on Wall street that our U.S. auto industry is not all dome and gloom. It is the time to go out and buy your share of our American auto companies now as there is no better time and the price is right.
God bless us all -support your American auto companies before it’s too late.
Mark S
Cad Johnson
Merge GM with Chrylser - The only way to save US auto industry, as the industry sales volume shrinks and Detroit automaker fighting for their survival. But it needs federal government to provide sponsorship and financial aid (similar to JP Morgan/Bear Stern deal), as well as endorsement from UAW.
Steven Smith
The Case for GM - NO NO NO - Government-Backed Loans for Automakers especially GM
Rbb
I’m afraid because of Mis-management and Union Greed, this company has lost it’s opportunity for recovery.
They have had ample opportunity over the years to set the correct course. Why wait until the last minute.
I doubt GM will last out through 2009. They are losing 1 billion per month. I don’t see how they will meet payroll, if they can’t get financing soon.
So sad
James S.
So GM is unwilling to break the UAW, unwilling to fight the party that pushes for outrageous CAFE regulations, unwilling to fight currency manipulation and protectionsim overseas, but wants me, a taxpayer, to pay a portion of the bail out?
If GM listened to the consumer a bailout wouldn’t be needed.
Edwin
Mr. Wagoner,
We are excited about GM and its product plans. GM is a special company, its more than a company to Americans.
GM should have more cost cuts if necessary, don’t be concerned about market share right now, that will come by itself in time. Be concerned about product excitement, customer loyalty, and keep being a great American company and building great American cars. GM is winning.
GM should look at selling Saab and Opel. Why not sell Opel for cash? A little voice is saying get out of Europe, focus on North America. Please don’t have anything to do with any foreign companies.
Don’t upset the GM customers and enthusiasts, they are GM’s most important assets. Keep building customer loyalty. Ask people to buy American cars in the economic slow down. Advertise an extended family plan, buy two and get a special price.
Don’t confuse the customer by getting in talks with other companies, it will only serve to confuse American consumers, it will not help GM. We believe that the American auto industry can and will beat the foreign competition. GM’s American products are fantastic.
Good news - My brother in law just picked up a brand new Acadia for his company, he’s excited about GM products. GM should keep its focus on building great American style like the Malibu and the Camaro.
Ronnie Fuller
This is when GM should had swallowed its pride and just built the Damn EV-1. GM hate to say this but it worked.You still have the plant the molds and the people that you had laid off.From my understanding. 200 miles to one charge. My 1979 10th anniversary trans am cant even get 200 miles from a full gas tank. I am still a GM man but now I wonder about the future.
Ronnie Fuller
P.S. GM just build the damn thing (ev-1) and let it go.We make mistakes in life.The problem is how fast are we willing to take that mistake and make it a positive.
Chi C. Wong
1) Could you provide manual transmissions for your full size pickups? I think that would be very nice.
2) Could you provide a small size pickup with a 4 cylinder turbo diesel engine with about 150 hp and 300 ftlb torque? Of course, please offer a 6 speed manual transmission. I think this is a gap in the market that nobody is filling. Perhaps Mahindra from India maybe offering that. Why not offer such a vehicle that can get 35 mpg for all 50 states? I think such a vehicle will sell well.
Thanks for your time.
Pepper O'Malley
I’ll second that Chi, a vehicle like that would sell well. I would certainly be interested.
GM: Why can’t you give us a quality compact pickup truck with a 4-cylinder turbo-diesel and manual transmission?
mike
So, the Chrysler aquisition could work. This loan can only help. Don’t know why it gets so much bad press. Ok, I’m pretty fond of my possible brand mix, so got to share it.:
- Chevy,
- Cadillac,
- Dodge replaces Pontiac - more sporty cars + tough trucks; Dodge full line > Pontiac
- Chrysler replaces Saturn + keeps minivan - upscale European cars\Opels. Chry reknown brand, better image, sales than Saturn.
- Buick (GMC + Park Avenue\G8 + Buick) - full line american near luxury brand. Denali’s would make awesome Buicks. + Buick Terrain small SUV . This way Buick would qualify easier for an EV or hybrid.
Phil
One more thing. Rick…
Instead of draining all YOUR cash with larger CASH INCENTIVES, ask your marketing people what
EXPERIENCES or THINGS are of GREAT VALUE to the average American but don’t cost many THOUSANDS OF DOLLARS.
Like a VACATION TO LAS VEGAS or other top-of-mind destination, or a LAPTOP COMPUTER, or MEALS at ULTRA-HIGH-END RESTAURAUNTS.
NOVEMBER 1, start offering CHOICES OF THESE as incentives in partnerships that will help to stimulate the economy in general.
Other companies will be eager for the business, and cash-strapped consumers will have EXCITING MEMORIES that will last a lifetime LINKED DIRECTLY TO THEIR GM CAR. And stop them from buying Toyota or Honda or Ford!!
I think it is a powerful way to go in an economic downturn, which would not be effective when everyone’s flush with cash!
This chokes off cash burn while allowing you to lower your prices back to VALUE PRICE levels on 2009 models. If employee pricing actually didn’t increase your incentive levels as Fritz said, then simple VALUE PRICING plus TANGIBLE/EXPERIENCE INCENTIVES should cut it to under $1000/car!!! Come on Rick, combine a mailing targeting those with 2004 or earlier cars with a VALUE PRICING CAMPAIGN that doubles as the incentive campaign, and let’s boost sales and market share as it was in September. That month showed that Americans WILL BUY GM if they percieve the value in the purchase. But this time it won’t cost nearly as much!!
You will already have assured them that credit is available!!
Don’t debate it, DO IT!!
Greg
Sir,
Does this mean that GM could stop asking for GIVE BACKS from the companies that support GM? Every year that my company gives back money we do not get a raise. This has been going on for five years. We play a large roll in your success, how about treating your partners as if we mean something to your business.
Blue Wing
“Does this mean that GM could stop asking for GIVE BACKS from the companies that support GM? “
Let’s hear more about this Greg. It sounds like your company is a GM supplier, and you have to give kickbacks to GM so they will throw business your way. Do I understand that right?
Wendell Mercantile
“CEO Rick Wagoner explains the importance that Congress provide loans to automakers in order to meet more-stringent fuel economy mandates.”
General Motors Precept
Something from the archives: GM Unveils Concept Car That Gets 108 mpg “GM ended the project in 2000, claiming no one would be interested in buying the vehicle.”
GM already had a diesel-electric hybrid in 2000. Why do they need a loan now to meet “more-stringent fuel economy mandates” when they had the answer at least eight years ago?
Tim
Wendell,
Probably because that car has a fuel cell. How many hydrogen stations are in the US?
Second, I bet that car would cost 2, 3, 4, 5 times as much as a conventional gasoline powered car. You can buy a lot of gas with an extra $20,000+ in you pocket.
The thing is, anyone can build a car that gets 100MPG. GM, Ford, Toyota, Honda anyone. The problem is the cost to develop it (hence why GM is asking for help from the government) and selling it in large numbers, and still make a profit. Sure, there are a few environmentalists and celebrities that would buy a $80,000 car that got 100MPG, but that’s about it (look at all the peopel complaining about the Volts pricing). And a company can’t sell something like that at a loss and expect to be around much longer. If GM could get everyone to sign a contract saying they would buy that car for X amount, I bet they would build it, because they knew they would sell, but since these types of cars don’t have a financial incentive for people, they aren’t going to sell in large volumes, and that’s why they won’t be built.
It’s a consumer driven economy. Everyone believes that until they talk about the auto industry, then everyone blames the automakers for the worlds problems, when in fact, it’s the consumer that doesn’t want to pay lots of money for a small car with great milage.
Bill Pickett
It’s time for GM to let the world know that you don’t shake a sleeping giant. GM has been sleeping 30 or 40 years letting the union dictate wages, I know many people who would work for only half the wages that are being paid at this time.If GM and Chrysler merge many job’s will be lost forever.
If we use our heads we could hire, hire,hire!
Wendell Mercantile
Tim,
There were two versions of the Precept. One with the hydrogen fuel cell. As you say, that was never realistic because of costs and lack of hydrogen infrastructure.
But the other version of the Precept was a diesel-electric hybrid. That one could have been affordable, and on the show room floor competing with the Toyota Prius. In 1993, the US Government formed the Partnership for a New Generation of Vehicles. The result of that was the GM Precept, the Ford Prodigy, and the Chrysler ESX-3, all of which had versions of a diesel-electric hybrid.
Toyota was not part of the PNGV and felt they would be left behind GM, Ford, and Chrysler if they didn’t act on their own. So they started work on what became the Prius in order to keep up. Then in 2001, the Big Three U.S. automakers asked the new Bush administration to cancel the PNGV program.
Bush did as they asked, and the rest is history. Toyota is now selling the Prius faster than they can build them, and GM can’t move the SUVs and heavy-pickups they decided to concentrate on.
The irony is that the Prius was an indirect result of the PNGV program in the U.S. and all three companies had the technology a decade ago with which they could be competitive with Toyota now.
GM and the others chose to throw away the advantage PNGV gave them in the 1990s, so why think loans now will have any better result?
Brad Johnson
The whole conversation on this thread — and this site — makes no difference.
No matter what the company or its executives do, it is too late. Please don’t kid yourselves. GM execs will never tell you the truly dire situation the company is in… here, on Wall Street, or anywhere else.
GM is going to zero.
Greg
Blue Wing
There is no promise of new business. This is how you buy supplier of the year.
Blue Wing
“There is no promise of new business. This is how you buy supplier of the year.”
Does being “supplier of the year” give you some special bragging rights?
Edwin
Mr. Wagoner,
Noticed that some of those buying new cars are doing so in conjunction with another family. Sometimes, the decision to buy a new car depends on the needs of the college student, the spouse, a sibling, or the elderly parent. They may swap cars and trade-in one car and buy the new car for themselves. GM should be marketing to families with a family plan. Give a special price when immediate family members buy two cars at the same time. This is just one way to build customer loyalty.
Here’s another marketing idea - buy an SUV and receive an Aveo for half price. That is just to wake people up.
Still like my suggestion above to sell Saab and Opel, get out of Europe and focus on North America to shore up GM cash position. Why not sell GMAC to Quicken Loans to shore up GM cash position. We are against any mergers.
Of course, Congress should fast track the new federal loans soon and loan even more to American auto companies, we support it. We are strong supporters of the American auto industry. If I were a GM exec, I would look at selling OPEL and Saab if necessary and focus on North America. Shore up GM’s cash position by selling European assets and do not fall for any mergers. Mergers are bad deals that confuse customers.
Build customer loyalty. Support polcies that build the US saving rates, when US saving rates are up, GM’s market share rises.
Be positive, ask people to buy a new car, many will do it.
Think positive, there is not going to be a recession, excited buyers are going to buy new cars, trucks, and SUVs. Now is the best time to buy.
If Washington had supported Detroit earlier, the economy would be strong today.
We don’t want to hear any of recession talk. Tell the media its a great time to buy a new vehicle this holiday season.
GM’s line-up should have more luxury choices in order to lower exposure. If GM’c line included the new Buick Invicta and Buick Riviera right now, sales would be more robust. So how can GM improve sales in the mean time? Simple, market the new Malibu and G6 as luxurious & sporty, because they are. Have you noticed that Hyundai is calling their cars luxury?
Believe it, there are many who like the Malibu looks but wish there was a Buick that looked like that. So the challenge is to get the near luxury hold outs who are waiting for a new look to buy the Malibu now, then when the Invicta hits, they can trade again. They can afford it too.
GM execs should focus on selling the great line-up you have right now and improving the line for the future. I’ve driven my brother-in-law’s new Acadia is a fantastic cross-over with plenty of room inside and sharp looks, it beats the foreign competition.
People have the money, and they will trade for the nicer looking car. The new Malibu line is so nice that GM should go for some high profile free media coverage. Do a Malibu test drive challenge. Have a drawing for picking your favorite Malibu color. Let’s see a Blitz for the new Malibu. GM should show luxury add-ons for the Malibu, including asking customers if they want custom embrodered seats.
I’m renting a new Impala this week. Its a great car, when they offered an Altima, I said no thanks, I want GM. They were completely out of Malibu’s, so I took the one Impala they had left. Its a wonderful ride.
GM enthusiasts are really talking up the new Malibu. Imaging a spoiler option for the Malibu.
As noted previously my brother-in-law just bought a new Acadia for his company. But he also looked at sedans and other cross overs. He asked the Buick dealer to show him their nicest car which was a loaded Lucerne as well as the Enclave. The Enclave is generating excitement for its beautiful design.
He’s also probably going to get another vehicle in the spring probably a luxury sedan. So what should he look at? A loaded Lucerne? A CTS? A Lincoln MKS?
My sister relates to the CTS commercial with the 30 something driver. Take the same CTS driver her with a new Enclave parked next to the CTS. Then show the son driving a new Malibu. Make it a five car family !!
We do all we can to support you all during these times, we’ve called our Congressman and told them to support you, we’ve told our friends, neighbors, co-workers, and students that GM cars are great.
There’s a new CTS in our garage today, the company are out golfing.
Cheers,
Kent Francis
I am all for a government bailout of the automakers.
With one requirement, the resignations of all executives of the company applying for aid.
It would a crime to risk billions of taxpayers dollars with negligent management teams that did not have the foresight and acumen to see the risks in their strategies.
Truly, Detroit seems to have learned nothing from the past. Such behavior needs to be punished, not rewarded.
Thomas Paine
Let’s recall that the analysts, the media, and the pundits were wong about the need for a DaimlerChrysler merger in 1998. It was a disaster and never should have happened. American auto companies should remain separate.
When Detroit is having difficulty, America itself craters at the foundations. This is the lesson that that every economist and politician need to learn. If Washington had helped America’s manufacturers, there would be no banking crisis today. And with the help of American manufacturers there won’t be a recession, the economy will rebound, have confidence.
Those reporting on mergers are blithering. These are the same liberal media that simply tries to undermine anything good in America. The same bunch of media that exploits misery in the midst of success.
First, GM execs have our full confidence, they are the most competant leaders in the world, far more competant than all the politicans in Washington put together; politicans who have collectively mismanaged the American economy since the September 11, 2001 attacks. Washington is to blame, not American manufacturers.
Let’s recall that the American auto companies, especially GM were gaining market share before the September 11, 2001 attacks, and making a strong profits, not in need of any advice from pundits, analysts, or politicians.
GM and the other American auto companies are the best managed companies on the earth, they’ve out-competed socialst governments on three continents, thats why the anti-business crowd are jealous.
GM should not buy Chrysler. Chrysler probably won’t need to file for bankruptcy, but bankruptcy for Chrysler is a better option than a merger.
GM should sell foreign assets if necessary. GM’s talent is its most valuable commodity, GM makes the world’s best cars, and no matter how much it has to cut, it will emerge, continue to make the world’s best cars, and eventually outcompete any foreign competition. This is what GM supporters believe and we don’t car if the market share fluctuates. Let the media fall off their wagons, let them scream and hollar, they will be wrong. Persistentance and determination are what made America great and its what made Detroit the automobile capital of the world, people, talent, and products will win any war. We are not afraid of bankruptcy, we would rather have a used GM car than a brand new car from the foreign competition, and we will never, never, never surrender our ideals for those of the interdependent idiots who intend on wrecking the American economy for their greed.
GM simply needs to shore up its cash position. American automakers should do fine in the market going forward. Market share is meaningless, its total volume, and there is plenty of demand for new vehicles in the future for all to share.
Make the cuts, sell the foreign assets, lobby for federal loans, do whatever it takes to win, but never never give up on us because we won’t give up on you.
Just say NO to mergers of any kind.
Jack
Sorry but I’m afraid history is just going to repeat itself.
Most of domestic auto tech is paid for by TAXPAYERS. The tech is developed (like NIMH batterys invented in Michigan in 1980) and then buried. Now we have Asia the leader in NIMH. GM, ford, Chrysler all developed diesel hybrids that got 70+ mpg in the 90’s (not to mention EV1 pure electric) but instead of introducing the tech…buried it and now getting killed by Asia for lack of vision.
GM european cars are superior to domestic models. Opel has several cars like the rebadged Astra and Vue’s that get better mileage than the US hybrid versions. Why buy an Astra here that only gets 32 mpg on the highway..when the Opal gets 50 mpg in europe? Why buy an Impala that gets 14 mpg on ethanol when you could buy a Jetta sedan that gets between 29 - 32 in town running diesel or biodiesel?
The talk about merging with Chrysler shows just how bad off GM is. Oh well, GM won’t be the first US automaker to disappear off the face of the earth. Truth is tax payers have been propping up GM for years…time to visit the reaper guys.
Jack
Tim,
“Everyone believes that until they talk about the auto industry, then everyone blames the automakers for the worlds problems, when in fact, it’s the consumer that doesn’t want to pay lots of money for a small car with great milage.”
GM does make great smaller cars that are a blast to drive, and get at least 45 mpg. Too bad they’re all only in Europe. Instead of bringing this stuff here..GM’s been too busy spending millions fighting CAFE standards and pushing junk on the average consumer. That’s why many former GM customers are driving other brands. It’s why GM is gasping for life at this very moment.
For 23K are you going to buy a Malibu Hybrid that gets 24 mpg, or a Prius (if you can find one right now) that gets 45 mpg? Don;t even get me started on their hybrid trucks. Too bad GM builds hybrids to fail just so they can say “I told you so. No one wants a hybrid!!”
No one wants a GM hybrid. Not the ones they offer now any way.
Conrad Heede
I recently test drove a Subaru Outback and was impressed with the so-called boxer engine. This engine is flat instead of up and down. the result, a lower center of gravity and WOW, what amazing cornering stability. Has any thought been put into designing boxer-type engines for use in trucks and SUV’s?
Frank Smalley
Mr Wagoner,
With all due respect, I find it quite hypocritical that in your time of need you expect the government to bail you out. Where was GM when so many suppliers in their time of need came to you for help? Did you offer any financial help at a time when you could? No, you turned a blind eye and moved your tooling onto the next victim. And left the bankrupt supplier to rot, as well as the countless Tier 2’s that did not get paid.
Your entire staff from Bo on down is cutthroat, disingenious, dishonest, and undeserving of one red cent. I feel bad for the countless GM employees and suppliers that will lose their jobs, houses and dignity while you and your staff keep your golden parachutes. It’s time you get thrown out like yesterday’s garbage.
Cad Johnson
In this difficult time, suggest GM to encourage all employee to come up ideas to help the company returning to profitability by setting up an internal campaign - ” Reward for Ideas”. Toyota does that in Japan. Each GM region should have an email address to collect employee ideas, and reward those ideas which generated either cost savings or improved revenue. Here are few of my ideas:
1) Export Hummer to China. H3 sells $21,000 in US after discount, but $100,000 in China. No formal GM distribution in China for Hummer brand, but there is market there for wealthy buyers.
2) Bring Cruze to US now, GM Korea started selling the vehicle this week, and Korean WON is depreciating a lot, it becomes a good case for import to US.
3) Bring the Holden G8 sports truck to US now, while Aussie dollar droped 30% in value, another good case for import to US. People can’t afford to run big trucks still need utility vehicles.
There are plenty good ideas out there, you just need to reach out to your people.
Bump Morgan
“GM does make great smaller cars that are a blast to drive, and get at least 45 mpg. Too bad they’re all only in Europe.”
Point well made Jack. It’s almost as though GM thinks Americans are not sophisticated or advanced enough for them to bring the good stuff over here and sell it to us.
Euroclydon
“Bring the Holden G8 sports truck to US now, while Aussie dollar dropped 30% in value, another good case for import to US.”
Good idea, but GM should also bring us the Chevy Montana compact pickup truck they make in Brazil for the South American market. As you point out, big pickup trucks are dead except for those in the type of business where one is necessary to get a job done. (That demand will never go away, just as there will always be a demand for 18-wheeler Peterbilts. But average people won’t be buying them to drive to work and pick up groceries.)
Edwin
Mr. Wagoner, Mr Lutz, et, al.,
From the news it sounds like GM is bailing out Cerberus. There has to be a better way. Don’t rush to judgement. Cerberus is just wrong to want a buyout. Chrysler is more viable and complementary to the America auto industry as as separate and distinct company.
Congress should provide aid that is separate and independent to each American auto maker.
Chrysler does not take GM business, Chrysler takes business from the foreign competitors. Without an independent Chrysler to fend off foreign auto makers, the foreign competition gains. There is no benefit to a GM takeover of Chrysler.
If the public saw a Dodge Ram as a GM truck, they would be less apt to buy it, not more apt. They would probably seek a foreign brand instead. It would only continue the agenda of the foreign competition to eat away at the edges of the American prowess.
The more excellent way is to push back against for foreign competition, let them buy each other out and eat each others lunch instead. An independent Chrysler is the best way to take down Honda.
Design, competition and curiousity drive the business and create the market. GM’s successful market niche was created by GM’s excellent team and likewise with each American auto maker. Its when the creativity was held back that GM faltered. GM created the mid-side coupe market during the 70’s and 80s. GM can create design markets.
GM’s North American creativity is more important than Opel or Saab - sell those assets instead.
Why not have Toyota takeover Honda or Nissan? You see, the foreign competition is trying to back GM into a corner. The liberal media and the foreign competition are the only ones who want GM to takeover Chrysler. Its a mistake. Don’t fall for it.
Washington is to blame. American auto companies were making good profits before the September 11, 2001 attacks. Congress needs to help the American auto industry through this period, but Amerian auto companies need to learn to hit back at the foreign competition, not cave in to pressure. PUSH BACK, don’t give-in. Its like you are giving up.
Listen to us. We know more than you think we know.
A GM takeover of Chrysler is the agenda of the foreign competition.
Chryler cars hurt Honda, Nissan, and Toyota.
GM’s product plans are strong and they will win. GM doesn’t need Chrysler.
Chrysler’s products independent product line only helps GM, but rekindling the American Spirit. The Challenger doens’ compete with the Camaro, it complements it and makes the market a fascination for the public once again as an American car market.
Just the presence of the Challenger and the 300 make GM’s new line even more fascinating to the people, Sepatate and distinct American auto makers take the focus off the foreign competition in the people’s eyes. With only two American auto companies it will only help the foreign competition to look more ominus. DON”T DO A Chrysler deal.
Let Chryler be Chrysler. Even if Chrysler filed for bankruptcy it wouldn’t matter to the buyer, people would still buy them, and might buy them all the more.
GM and the other American automakers should be asking Congress to pony up for American enterprise which has sacrifices during the war. Its just that simple. If they can help the banks, they ought to help American automakers even more.
Agreee, there wouldn’t be a financial crisis today if Congress had helped American manufacturing after teh 9/11 attackes.
Don’t panic or jump ship just for a slow down in the economy, the economy will reboud, there won’t be a recession, if GM says its going to succeed and sell cars. There is plenty of money out there, just ask for it and you’ll get it. As for the sales, NOW is GREAT TIME TO BUY a new Car.
America auto makers should lobby for more aid from Congres, but do it as a separate and distince companies. PUSH Back against the foreign competition. You will win that way.
Sell Opel instead to you know who, its worth lots cash to them, they will take it and they will pay you for it big time. But do you have the foresight to sell it now while GM has the upper hand. Its something GM should have already been doing instead of looking at Dodge.
Dodge will not add one cent to GM’s bottom line, a GM takeover of Dodge will detract from the equation and help the foreign competition, ITS WRONG WRONG WRONG.
GM enthusiasts know what we are talking about.
When the economy clears GM is going to soar. Chrysler and Ford will too.
The Camry will fade if GM keeps the faith. The Malibu is working.
The Chrysler 300 took chunks out of Toyota’s market. Its evidence that design and technique are the winning formula, not consolidations and takeovers.
There is more money out there to buy new vehicles, people are just waiting for inspiration. A person with means will hold their favorite car until they see another exciting car. If they don’t see new excitment they wait and wait.
So excite them, don’t bore them.
Buick and Pontiac designs are not quite there, that’s the problem. Buick and Pontiac customers like exciting designs, they are progressive car buyers, with higher tastes than you are giving them credit for, don’t sell them so short.
We told you 77 Cutlass Supreme and we were right, that is the new Malibu’s look and GM is winning for it.
Listen to us and we will bring you victory.
A GOOD name is rather to be chosen than great riches, and loving favour rather than silver and gold. (Proverbs 22:1)
Ben Dewberry
From today’s International Herald Tribune: U.S. rejects GM’s call for help in a merger
“Instead of providing new assistance, the Treasury Department told GM on Friday, the Bush administration will now shift its focus to speeding up the $25 billion loan program for fuel-efficient vehicles approved by Congress in September and administered by the Energy Department.”
Why does GM need $25 billion to “speed up” bringing fuel-efficient vehicles to the U.S? You already make fuel-efficient vehicles in Europe, South America, and Asia. Why can’t you either bring those models to the U.S. — or start building them here?
“CEO Rick Wagoner explains the importance that Congress provide loans to automakers in order to meet more-stringent fuel economy mandates.”
Mr Wagoner, use the models that you make and sell to the rest of the world. You already have the capability to meet more stringent fuel-economy mandates here.
Terence
The automakers are indeed too important to the economy to be allowed to fail and Congress will have to provide loans for them to survive the current recession. But there needs to be a quid pro quo - all employees, management and union, and retirees must accept a pay cut of varying percent ( say 10 to 30%) depending on pay or salary to help the company conserve cash until the loan is repaid. If the employees are serious about preserving their jobs, and I can’t imagine who would n’t be in this economy, that would be a small price to pay.
Scott
What makes us think that the Tiger is going to change it’s stripes? The “Big Three” have been screwing the public for the past 75 years with poorly designed, poorly built, inefficient crap. You would have thought that they would have started making changes in the mid 60’s when Japan started sending well built, quality cars over here, and again in the late 60 and early 70’s when the Arabs squeezed us with the fuel, but hell no. No change, no improvement, no nothing but more of the SOS. I say let them go down the tube.
Japan has been building cars in the USA since the early 80’s, and they are quality built, fuel efficient, cars that make Detroit iron look like it should be sent back to the smelter, and their built by the same kind of people that work in Detroit.
This is the same thing that happened in England. They would not respond to the needs of the public so all their auto makers are now owned by foreign companies and they still can’t sell them. In 1984, 80% of all cars sold in England were made else where. Sound familiar? Wonder if it’s going to happen here, damn rights it will unless Detroit gets off it’s collective fundaments and start building what this country needs, not that over priced crap that they are still trying to peddle.
I really don’t think they can survive for one simple reason. The same people that have been running things are still running things, and they have no incentive to make changes. If we let the government give them a bunch of money, they will keep doing the same thing they have been, paying those bloated bonuses to people who are running the company into the ground. Unless they are forced to change, they won’t. It’s time to let them go, fail, get out of the business and let someone who can do what’s needed have a chance.
I know some of you reading this think I’m pro Japan or against Detroit, no I’m not. I was in the industry for 45 years and have seen what they have, and are doing, and I have watched Japan make Detroit look like a bunch of spoiled kids. I would be happy to buy Detroit if I thought it would make it out of the showroom without breaking down or having a recall, but until they can fix their problems, no way.
Jon Granger
The solution to GM’s financial issue is to take a temporary but immediate pay cut across the board (from top to bottom) to a level that is breakeven for the company and stops the cash burn immediately. This is so simple, it will work. Then repair and rebuild from there. Do it now Rick.
Robert
First of all my wife and are avid Corvette fans and have several. We live within our means and would sell one if not all, if we needed to make ends meet for our family, etc.
That being said, I recently saw an interview with Mr. Lutz were he mentions he has access to a GM jet, and has multiple homes. Now if I went to the bank, told them I was going broke and wanted to borrow money, I think they would suggest selling some of the non-essentials.
If GM was asking me for a loan (which I guess they are), then I would suggest, get rid of your corporate jets, and fly like the rest of us, perhaps take a cut in pay, and lead by example. Then I might agree with it.
How about the execs all work for a dollar a year, and take some stock in the company.
Also, any money that is given/loaned to GM and others, should only be for plants that build fuel efficient vehicles and plants. Build something like a Prius, and I will buy. I am sure you know that hybrid has been available in Japan since 1997.
Good luck and get rid of the jets and other stuff before asking for my money!
Thanks!
Jim
Cut 20% of the managers, take their gas cards away, GM will save millions.
Shannon G. Carroll
The fuel prices are one of the main reasons for the crisis. The Federal Government would do nothing to ease the pain so people quit buying. I believe the government is doing this to force the big three into
alternative energy. What makes me upset is the majority of people that work for the auto industry keep electing the same people that hurt them. Another problem is the dealerships. Most of them are a bunch
of liars and thieves. Start a new car website were people can get a great deal and cut the overhead. You cut overhead by doing away with the dealerships. Have Gm owned car lots were customers go and look to decide what they want and purchase online. By the way I have own 3 Gmc pickups, but if things do not change I will be going to Toyota. Gm makes to many models. Need to cut that down.
Until we Americans stand up and say enough, foreigners are going to continue to come to America and put our companies out of business. This is already happening.
bill caron
1 gm needs cash
2 very few decent savings accounts available
3 money market under 2%
offer a decent rate of return and i for one will save with you
gmac maybe can handle this
Robert
Dear Mr. Wagoner,
On November 14th on this very blog I suggested parking your jets before asking us for “our money”. Today on various news channels I see that you and your PR folks at GM (and others) are such idiots that corporate jets were used to go to Washington to ask for your “bailouts”.
If you cannot see the problem with this you obviously do not know how to handle any money given to you. You and your PR folks should resign, and let people that understand the obvious deal with the issues at hand.
I am truly disappointed. ( I guess my GM warranties will soon be as worthless as GM stock )
Robert
Rick
Robert,
Go check the gas and tires on the jet would you?
Alan Carvalho
The U.S. auto industry definately should receive government help. Cars are much more of “real property” items than the financial industry. American cars are the social energy future. Life is serious and keeping our auto industry is a serious need. Let’s be serious and do what is right.
Sam Manwell
Dear Mr Wagoner, Next time you go before the media and Congress be sure to emphasize or clarify that this is “Not” a bailout,but rather a simple request for a low cost loan.If government decides what is best for this industry and more importantly how to run it then we as automakers will soon be doomed to the scrapheap of history.It is beyond the scope of government to sucessfully run public entities sucessfully and has a long track record to prove it.It is also ironic that the government without question provides a mismanaged company like Citigroup more than $45 Billion in free unaccounted for taxpayer money without questioning or testing individuals at the center of it all like Robert Rubin for the failure of his company while he is the chief non-executive director of it for all these years while collecting $115 Million dollars every year that it has been failing.I’m certain without a doubt if he were still on the board of directors at Ford motor company that low cost loans for the entire domestic industry would be forthcoming and without government questioning or Congressional inquisition.
Claudiu ( Romania )
TO All
I agree that all big 3 made a lot of mistakes, but let’s think about what is the impact on the global economy if the big 3 will go bankrupt. This is a global matter not only concernes the big 3.
Tim
Robert,
I’m sure since you feel this strongly about using jets for personal transportation that you have sent an email to President Bush and all members of congress that they should now sell Air Force 1 and fly comercial, or even drive themselves because last time I checked the US government is about $9 TRILLION in debt and it’s growing by the millions everyday. Oh, and in case you didn’t know, that’s your money they’re spending!
Richard Wu
Dear Rick,
The crisis of the American auto industrials haunted around my mind for several days. Now, I have some ideas to help auto industrials to go through this difficult time.
The high benefit package of the union worker was the blame for the crisis of the auto industrial. On one hand, it is burden for the corporation. On the other hand, the reputation of the high compensation for its worker was the incentive to attract talent people working for the company. My point is not how to execute or assign the high benefit package. My point is how to squeeze out the competitors and regain the market share back to American auto industrials. Unfortunately, everything went opposite way now. The competitors try to squeeze out our industrial and occupy our market. The patriotic will not help us to compete but the better strategy will.
First, let us analysis how the foreign company steal American auto market. They use two strategies to invade American auto market as every other industrial. One is improving the auto quality. The second is lowering the cost. We can compete with them for first point but failed on second.
Here is the strategy based on above obvious reason. The strategy is very simple. For the small car models where the foreign companies dominate market, we could move out the same car model to the China to lower the cost. We even don’t have use our own money. All we needed to do is persuade Chinese government use their money to invest on our certain models that can compete with the foreign companies on small car market. After we squeeze out our foreign competitors out the market, we have the power to determine the prices. We even don’t need worry about the Chinese because they only make the car for us and we control the techs and markets. We still take big share of the profit through that kind of cooperation. In addition, we also can occupy the Chinese auto market through our cooperation.
For other car models which American auto markers dominate the market, we still can keep in the American. Plus, we will invest on new models which can beat our competitor in the future. We can obtain the invention and patent profits by investing the future car models and keep our auto industrial survived in American soil.
The best management strategy is always grabbing your competitor’s throat. Never let your competitor grabs yours.
Richard
J HOlt
I have several hundred shares of preferred stock of GM. I know that the interest on that debt
is a significant cost for GM> I am suggesting a way to reduce that debt while selling more cars.
Preferred is listed on GM’s book of debt at $25.00. GM ’s preferred is selling at a fraction of the
$25.00. Let individual debt holders trade there preferred stock as credits on purchasing a new
car. Let them trade there preferred stock for a payments on a new car. This would eliminate the debt while selling cars. It would help GM and would help the individual liquidate his preferred stock. and get him a new car. I would be interested in that now. What do you think?
Casey Powell
If GM is going to succeed then they need to build a better product than they build now; If the quality (poor) of my Saab 97x ($40K) is any indication, there is no hope for GM’s future. If Mr. Wagoner truly believes that GM quality is on par with japanese makers and even Ford, he is sadly mistaken (as borne out by Consumer Reports etc).
I am 100% in support of having an American auto industry, for a variety of reasons; however, Mr. Wagoner and the UAW are kidding themselves if they think that the American buyer (outside of Detroit, Ohiuo, etc) will accept an inferior product in the name of patriotism. Just saying “we build a quality product” doesn’t make it so.
I live in Detroit and my livlihood is directly related to GM/Ford/Chrysler prosperity; but I will not buy another GM product, period. I’m truly sorry for GM, but when the rubber meets the road, Mr. Wagoner and the UAW have failed to deliver the goods.
Casey Powell
Tim Bates
To GM,
As a person who has owned both GM and Toyota, I can say that i will always support GM.
As to the restructuring that has plagued the US auto manufacturers, I find it unfortunate that the US companies have greatly improved quality to the point where they lead in some categories. And the designs are finally coming around instead of being second to all other manufacturers.
I, as most people cannot know all the details of what is happening with the restructuring. I do see that the auto union has not helped US companies compete with such ridiculous wages and benefits. Unions are important but have not worked with companies but only to force companies to give them what they want.
As to what are some of my ideas, coming from someone who wants to see GM survive , as to what could be done.
(I also can’t say I have read all information out there on what is happening, with all the issues in life today, its hard to look at all information coming from the fire hose of the internet)
Spin off Saturn and a few others into a separate company
Unions will have to give up even more than what I have heard (but i sure have heard some wild amounts thrown around)
Spin off ONStar - This is a great idea that should be offered to all
Reduce duplication among the various lines
Make a subset of Chevy (called ?? - not Chevrolet) that is the camaro and Corvette, the true sports car line, that could include something like the camaro or other cars that are really stripped down that an individual who wants to modify the car can buy and then add all the styling and modifications there heart desires.
Take all energy efficient hybrids and Electric Volts under one umbrella. The standard malibu (beautiful car) would be under Chevy but the Hy-brid would be under the GreenM logo
Just some rambling of someone who would like GM to survive all this
But more design and work needs to be done on the Trucks of GM as well. Toyota and others are taking the business through the styling they offer. Not to mention the Gas mileage is not High enough to keep that end of the business Going.
Good luck GM
I will be looking for a truck soon, but will also be buying my cruising car (well, not as soon) the convertable Camaro, my only choice.
Cheers
Tim Bates
bill richmond retiree of gm
i want gm to survive , i want to suggest to gm break with each of it numerous auto facititys like chevy buick , pontiac, cadilac ,saturn to allow them to operate as a indipendent business and let them govern themselves compete with each other and the debt of gm be split beteen them and the stimulus package be divided among them let them do their adbvertising and make auto parts producers pay for allowing them to produces parts and also gm ,ford. and chrysler go togeather on sharing the expence of marketing and developement of all future products and gm to deversify into other areas of ownership of different business this is something to think about thank bill richmond
bill richmond retiree of gm
gm waste a lot of useless overtime and human brainpower ask their employees their opion on how to become profitable. gm emloyees are some of the best in the world. when cars arent selling shut the plants down until inventory goes down also the sales tax on cars stop potential buyers , it is rediculous thanks much bill richmond
bill richmond retiree of gm
,people dont have jobs how can they contribute to the economy, they cant. michigan has a 6% sales tax on autos new and used that is enought to keep people from buying cars on a 30,000$ car the tax is 1800$ gm should advertise we will pay all taxes on cars bought new from gm ,back off on dealing but with all the givebacks it seems like gm could lower the prices on new cars i feel they have been overprices for a long time and if uaw gives concessions gm should reinstate all of concessions once they become profitable again after 2 yrs the government should give a good stimulus to the people in the form of a debit card with a experation date thanks bill richmond