GM announces new VIABILITY plan. Pontiac RIP (by 2010) G8 dead in 2009
04-27-09, 07:51 AM
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GM announces new VIABILITY plan. Pontiac RIP (by 2010) G8 dead in 2009
GM Accelerates Its Reinvention As A Leaner, More Viable Company
Updated Viability Plan Speeds, Deepens Restructuring of U.S. Operations
DETROIT -- General Motors (NYSE: GM) today presented an updated Viability Plan that will speed the reinvention of GM's U.S. operations into a leaner, more customer-focused, and more cost-competitive automaker.
The Viability Plan is included in an exchange offer whereby GM is offering certain bondholders shares of GM common stock and accrued interest in exchange for certain outstanding notes.
Revised Viability Plan goes further and faster
The Viability Plan announced today builds on the February 17 Viability Plan submitted to the U.S. Treasury. http://media.gm.com/servlet/Ga...52168. The revised Plan accelerates the timeline for a number of important actions and makes deeper cuts in several key areas of GM's operations, with the objective to make us a leaner, faster, and more customer-focused organization going forward.
Significant changes include:
A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand.
A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service.
Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.
Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.
"We are taking tough but necessary actions that are critical to GM's long-term viability," said Fritz Henderson, GM president and CEO. "Our responsibility is clear - to secure GM's future - and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team."
Fewer U.S. brands, nameplates, and dealers
As part of the revised Viability Plan and the need to move faster and further, GM in the U.S. will focus its resources on four core brands, Chevrolet, Cadillac, Buick and GMC. The Pontiac brand will be phased out by the end of 2010. GM will offer a total of 34 nameplates in 2010, a reduction of 29 percent from 48 nameplates in 2008, reflecting both the reduction in brands and continued emphasis on fewer and stronger entries. This four-brand strategy will enable GM to better focus its new product development programs and provide more competitive levels of market support.
The revised plan moves up the resolution of Saab, Saturn, and Hummer to the end of 2009, at the latest. Updates on these brands will be provided as these initiatives progress.
Working with its dealers, GM anticipates reducing its U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010, a reduction of 42 percent. This is a further reduction of 500 dealers, and four years sooner, than in the February 17 Plan. The goal is to accomplish this reduction in an orderly, cost-effective, and customer-focused way. This reduction in U.S. dealers will allow for a more competitive dealer network and higher sales effectiveness in all markets. More details on these initiatives will be provided in May.
Sales volume and market share projections
The Viability Plan anticipates improved financial results despite more conservative U.S. sales volume expectations going forward. The lower volume expectations are the result of managing the business with fewer nameplates and dealers, leaner inventories, and reduced market share. To address the inventory issue, GM on April 23 announced U.S. production schedule reductions of approximately 190,000 vehicles during the second and early third quarters of 2009.
The Viability Plan also reduces GM's market share projections to adjust for the impact of the brand and dealer consolidation, as well as for the short-term impact of speculation regarding a GM bankruptcy. The plan assumes a 19.5 percent share in 2009, with share stabilizing in the 18.4 to 18.9 percent range in subsequent years.
"We have strong new product coming for our four core brands: the Chevrolet Camaro, Equinox, Cruze and Volt; Buick LaCrosse; GMC Terrain; and Cadillac SRX and CTS Sport Wagon and Coupe," said Henderson. "A tighter focus by GM and its dealers will help give these products the capital investment, marketing and advertising support they need to be truly successful."
Lower structural costs, lower breakeven point
The Viability Plan also lowers GMNA's breakeven volume to a U.S. annual industry volume of 10 million total vehicles, based on the pricing and share assumptions in the plan. This lower breakeven point (at an adjusted EBIT level) better positions GM to generate positive cash flow and earn an adequate return on capital over the course of a normal business cycle, a requirement set forth by the U.S. Treasury in its March 30 viability plan assessment.
GM will lower its breakeven point by cutting its structural costs faster and deeper than had previously been planned:
Manufacturing: Consistent with the mandate to accelerate restructuring, we plan to reduce the total number of assembly, powertrain, and stamping plants in the U.S. from 47 in 2008 to 34 by the end of 2010, a reduction of 28 percent, and to 31 by 2012. This would reflect the acceleration of six plant idling/closures from the February 17 plan, and one additional plant idling. Throughout this transition, GM will continue to implement its flexible global manufacturing strategy (GMS), which allows multiple body styles and architectures to be built in one plant. This enables GM to use its capital more efficiently, increase capacity utilization, and respond more quickly to market shifts.
Employment: U.S. hourly employment levels are projected to be reduced from about 61,000 in 2008 to 40,000 in 2010, a 34 percent reduction, and level off at about 38,000 starting in 2011. This further planned reduction of an additional 7,000 to 8,000 employees from the February 17 Plan is primarily the result of the previously discussed operational efficiencies, nameplate reductions, and plant closings. GM also anticipates a further decline in salaried and executive employment as it continues to assess its structure and execute the Viability Plan. More details will be announced as soon as they are finalized with the various stakeholders.
Labor costs: The Viability Plan assumes a reduction of U.S. hourly labor costs from $7.6 billion in 2008 to $5 billion in 2010, a 34 percent reduction. GM will continue to work with its UAW partners to accomplish this through a reduction in total U.S. hourly employment as well as through modifications in the collective bargaining agreement.
As a result of these and other actions, GMNA's structural costs are projected to decline 25 percent, from $30.8 billion in 2008 to $23.2 billion in 2010, a further decline of $1.8 billion by 2010 versus the February 17 Plan.
Strengthening GM's balance sheet
Another key element of GM's restructuring will be taking the necessary actions to strengthen its balance sheet. GM today took an important step in improving its balance sheet by launching a bond exchange offer for approximately $27 billion of its unsecured public debt. If successful, the bond exchange would result in the conversion of a large majority of this debt to equity.
"A stronger balance sheet would free the company to invest in the products and technologies of the future," Henderson said. "It will also help provide stability and security to our customers, our dealers, our employees, and our suppliers."
Another important part of improving the balance sheet will be the ongoing discussions with the UAW to modify the terms of the Voluntary Employee Benefit Association (VEBA), and with the U.S. Treasury regarding possible conversion of its debt to equity. The current bond exchange offer is conditioned on the converting to equity of at least 50 percent of GM's outstanding U.S. Treasury debt at June 1, 2009, and at least 50 percent of GM's future financial obligations to the new VEBA. GM expects a debt reduction of at least $20 billion between the two actions.
In total, the U.S. Treasury debt conversion, VEBA modification and bond exchange could result in at least $44 billion in debt reduction.
Throughout the Plan, GM will continue to make significant investment in future products and new technologies, with an investment of $5.4 billion in 2009, and investments ranging from $5.3 to $6.7 billion from 2010 to 2014. Very importantly, development and testing of the Chevy Volt extended-range electric car remains on track for start of production by the end of 2010 and arrival in Chevrolet dealer showrooms soon thereafter.
"The Viability Plan reflects the direction of President Obama and the U.S. Treasury that GM should go further and faster on our restructuring," Henderson said. "We appreciate their support and direction. This stronger, leaner business model will enable GM to keep doing what it does best - provide great new cars, trucks and crossovers to our customers, and continue to develop new advanced propulsion technologies that are vital for our country's
Updated Viability Plan Speeds, Deepens Restructuring of U.S. Operations
DETROIT -- General Motors (NYSE: GM) today presented an updated Viability Plan that will speed the reinvention of GM's U.S. operations into a leaner, more customer-focused, and more cost-competitive automaker.
The Viability Plan is included in an exchange offer whereby GM is offering certain bondholders shares of GM common stock and accrued interest in exchange for certain outstanding notes.
Revised Viability Plan goes further and faster
The Viability Plan announced today builds on the February 17 Viability Plan submitted to the U.S. Treasury. http://media.gm.com/servlet/Ga...52168. The revised Plan accelerates the timeline for a number of important actions and makes deeper cuts in several key areas of GM's operations, with the objective to make us a leaner, faster, and more customer-focused organization going forward.
Significant changes include:
A focus on four core brands in the U.S. - Chevrolet, Cadillac, Buick and GMC - with fewer nameplates and a more competitive level of marketing support per brand.
A more aggressive restructuring of GM's U.S. dealer organization to better focus dealer resources for improved sales and customer service.
Improved U.S. capacity utilization through accelerated idling and closures of powertrain, stamping, and assembly plants.
Lower structural costs, which GM North America (GMNA) projects will enable it to breakeven (on an adjusted EBIT basis) at a U.S. total industry volume of approximately 10 million vehicles, based on the pricing and share assumptions in the plan. This rate is substantially below the 15 to 17 million annual vehicle sales rates recorded from 1995 through 2007.
"We are taking tough but necessary actions that are critical to GM's long-term viability," said Fritz Henderson, GM president and CEO. "Our responsibility is clear - to secure GM's future - and we intend to succeed. At the same time, we also understand the impact these actions will have on our employees, dealers, unions, suppliers, shareholders, bondholders, and communities, and we will do whatever we can to mitigate the effects on the extended GM team."
Fewer U.S. brands, nameplates, and dealers
As part of the revised Viability Plan and the need to move faster and further, GM in the U.S. will focus its resources on four core brands, Chevrolet, Cadillac, Buick and GMC. The Pontiac brand will be phased out by the end of 2010. GM will offer a total of 34 nameplates in 2010, a reduction of 29 percent from 48 nameplates in 2008, reflecting both the reduction in brands and continued emphasis on fewer and stronger entries. This four-brand strategy will enable GM to better focus its new product development programs and provide more competitive levels of market support.
The revised plan moves up the resolution of Saab, Saturn, and Hummer to the end of 2009, at the latest. Updates on these brands will be provided as these initiatives progress.
Working with its dealers, GM anticipates reducing its U.S. dealer count from 6,246 in 2008 to 3,605 by the end of 2010, a reduction of 42 percent. This is a further reduction of 500 dealers, and four years sooner, than in the February 17 Plan. The goal is to accomplish this reduction in an orderly, cost-effective, and customer-focused way. This reduction in U.S. dealers will allow for a more competitive dealer network and higher sales effectiveness in all markets. More details on these initiatives will be provided in May.
Sales volume and market share projections
The Viability Plan anticipates improved financial results despite more conservative U.S. sales volume expectations going forward. The lower volume expectations are the result of managing the business with fewer nameplates and dealers, leaner inventories, and reduced market share. To address the inventory issue, GM on April 23 announced U.S. production schedule reductions of approximately 190,000 vehicles during the second and early third quarters of 2009.
The Viability Plan also reduces GM's market share projections to adjust for the impact of the brand and dealer consolidation, as well as for the short-term impact of speculation regarding a GM bankruptcy. The plan assumes a 19.5 percent share in 2009, with share stabilizing in the 18.4 to 18.9 percent range in subsequent years.
"We have strong new product coming for our four core brands: the Chevrolet Camaro, Equinox, Cruze and Volt; Buick LaCrosse; GMC Terrain; and Cadillac SRX and CTS Sport Wagon and Coupe," said Henderson. "A tighter focus by GM and its dealers will help give these products the capital investment, marketing and advertising support they need to be truly successful."
Lower structural costs, lower breakeven point
The Viability Plan also lowers GMNA's breakeven volume to a U.S. annual industry volume of 10 million total vehicles, based on the pricing and share assumptions in the plan. This lower breakeven point (at an adjusted EBIT level) better positions GM to generate positive cash flow and earn an adequate return on capital over the course of a normal business cycle, a requirement set forth by the U.S. Treasury in its March 30 viability plan assessment.
GM will lower its breakeven point by cutting its structural costs faster and deeper than had previously been planned:
Manufacturing: Consistent with the mandate to accelerate restructuring, we plan to reduce the total number of assembly, powertrain, and stamping plants in the U.S. from 47 in 2008 to 34 by the end of 2010, a reduction of 28 percent, and to 31 by 2012. This would reflect the acceleration of six plant idling/closures from the February 17 plan, and one additional plant idling. Throughout this transition, GM will continue to implement its flexible global manufacturing strategy (GMS), which allows multiple body styles and architectures to be built in one plant. This enables GM to use its capital more efficiently, increase capacity utilization, and respond more quickly to market shifts.
Employment: U.S. hourly employment levels are projected to be reduced from about 61,000 in 2008 to 40,000 in 2010, a 34 percent reduction, and level off at about 38,000 starting in 2011. This further planned reduction of an additional 7,000 to 8,000 employees from the February 17 Plan is primarily the result of the previously discussed operational efficiencies, nameplate reductions, and plant closings. GM also anticipates a further decline in salaried and executive employment as it continues to assess its structure and execute the Viability Plan. More details will be announced as soon as they are finalized with the various stakeholders.
Labor costs: The Viability Plan assumes a reduction of U.S. hourly labor costs from $7.6 billion in 2008 to $5 billion in 2010, a 34 percent reduction. GM will continue to work with its UAW partners to accomplish this through a reduction in total U.S. hourly employment as well as through modifications in the collective bargaining agreement.
As a result of these and other actions, GMNA's structural costs are projected to decline 25 percent, from $30.8 billion in 2008 to $23.2 billion in 2010, a further decline of $1.8 billion by 2010 versus the February 17 Plan.
Strengthening GM's balance sheet
Another key element of GM's restructuring will be taking the necessary actions to strengthen its balance sheet. GM today took an important step in improving its balance sheet by launching a bond exchange offer for approximately $27 billion of its unsecured public debt. If successful, the bond exchange would result in the conversion of a large majority of this debt to equity.
"A stronger balance sheet would free the company to invest in the products and technologies of the future," Henderson said. "It will also help provide stability and security to our customers, our dealers, our employees, and our suppliers."
Another important part of improving the balance sheet will be the ongoing discussions with the UAW to modify the terms of the Voluntary Employee Benefit Association (VEBA), and with the U.S. Treasury regarding possible conversion of its debt to equity. The current bond exchange offer is conditioned on the converting to equity of at least 50 percent of GM's outstanding U.S. Treasury debt at June 1, 2009, and at least 50 percent of GM's future financial obligations to the new VEBA. GM expects a debt reduction of at least $20 billion between the two actions.
In total, the U.S. Treasury debt conversion, VEBA modification and bond exchange could result in at least $44 billion in debt reduction.
Throughout the Plan, GM will continue to make significant investment in future products and new technologies, with an investment of $5.4 billion in 2009, and investments ranging from $5.3 to $6.7 billion from 2010 to 2014. Very importantly, development and testing of the Chevy Volt extended-range electric car remains on track for start of production by the end of 2010 and arrival in Chevrolet dealer showrooms soon thereafter.
"The Viability Plan reflects the direction of President Obama and the U.S. Treasury that GM should go further and faster on our restructuring," Henderson said. "We appreciate their support and direction. This stronger, leaner business model will enable GM to keep doing what it does best - provide great new cars, trucks and crossovers to our customers, and continue to develop new advanced propulsion technologies that are vital for our country's
04-27-09, 07:52 AM
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General Motors officially announced on Monday its Pontiac brand will be phased out by the end of 2010, but the marque’s brightest star – the G8 – won’t even make it that far. GM CEO Fritz Henderson announced earlier today the G8 sedan will be phased out by the end of this year.According to Henderson, Pontiac’s relationship with Holden – GM’s Australian subsidiary and maker of the G8 – will end by the end of 2009. Henderson said production of the Pontiac G8 will wind down by the end of the year, with the automaker prepared to offer heavy incentives to get the performance sedan off dealer lots. News AU estimates the end of the Pontiac G8 will cost Holden more than $750 million in lost revenue.
Additionally, Henderson said GM has no plans to move any Pontiac models to other brands. That means the Pontiac Solstice will ride off into the sunset shortly after the G8, with the Vibe likely to be the last model standing in the Pontiac lineup. The Vibe is made at a joint-venture plant with Toyota, with the five-door wagon set to be produced through 2010. The Pontiac G3 — essentially a rebadged version of the Chevy Aveo — and the G6, a platform mate of the Chevy Malibu, will also be discontinued.
Additionally, Henderson said GM has no plans to move any Pontiac models to other brands. That means the Pontiac Solstice will ride off into the sunset shortly after the G8, with the Vibe likely to be the last model standing in the Pontiac lineup. The Vibe is made at a joint-venture plant with Toyota, with the five-door wagon set to be produced through 2010. The Pontiac G3 — essentially a rebadged version of the Chevy Aveo — and the G6, a platform mate of the Chevy Malibu, will also be discontinued.
04-27-09, 07:59 AM
#3
If the G8 is going to be gone by the end of the year then they should have the entire brand be done then too. Aside from the G8, the rest of it is garbage.
This is sad, to be honest. I know it has to happen but it's still unfortunate. Also, I remain puzzled as to how GMC is even remotely still around.
This is sad, to be honest. I know it has to happen but it's still unfortunate. Also, I remain puzzled as to how GMC is even remotely still around.
04-27-09, 08:12 AM
#5
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I also remain puzzled as to how GM is going to be viable. To even hope to do so, they are going to have to be a much smaller company (perhaps even smaller than they currently contemplate), but I don't see them ever becoming the behemoth they were before. Moreover, it's going to be sometime, in my opinion, before people can afford to buy even a new vehicle at the rate they were doing before this economic disaster fell us.
Growing up, it seemed to me that especially GM, but also Ford and Chrysler, ran on an idea that one would trade their vehicles in every 4 or 5 years, whereas with Japanese even European, that number was a lot longer. I still see that in the domestic brands.
Growing up, it seemed to me that especially GM, but also Ford and Chrysler, ran on an idea that one would trade their vehicles in every 4 or 5 years, whereas with Japanese even European, that number was a lot longer. I still see that in the domestic brands.
04-27-09, 08:39 AM
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Funny but GM's bad news hasn't really hurt the stock market. That is more job loss. What they are not stating is how many jobs are lost with suppliers, dealerships, etc etc etc.
Just more bad news
Just more bad news
04-27-09, 08:40 AM
#7
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Read this today... ugh...
rest...
http://news.yahoo.com/s/nm/20090427/bs_nm/us_gm_6
sounds like an unbelievable windfall (read: payback) to the UAW.
... The new GM that would emerge from the restructuring would be 89 percent-owned by the U.S. government and the United Auto Workers unions, provided that workers and officials approve plans to take an ownership stake in exchange for debt. ...
http://news.yahoo.com/s/nm/20090427/bs_nm/us_gm_6
sounds like an unbelievable windfall (read: payback) to the UAW.
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04-27-09, 11:47 AM
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I don't really know how excited I would get about this plan. There are a lot of things that still have to happen but the gov won't let GM go away. At least not right now. But it is clear the current stockholders and the bondholders are being told to bend over and take one for the team. My guess is that GM will use every bit of its five weeks but with ChryCo going first, this has everyone focused. Finally. Would have saved about $30B and nine months if they would have had their feet held to the fire last year but that is the way it goes.
Those bondholders have already spoken so the ball is already back in the gov's court, GM management is nothing more than a conduit now.
April 27 (Bloomberg) -- General Motors Corp. bondholders find the automaker’s offer to exchange their $27 billion in debt for equity unlikely to succeed, according to a person familiar with the committee representing creditors.
That’s because the offer by GM, the biggest U.S. automaker, treats bondholders worse than other claimants, such as unions, said the person, who declined to be identified because the discussions are private. At least 90 percent in principal amount of the notes must be exchanged by June 1 to satisfy the U.S. Treasury and avert a bankruptcy, GM said today in a statement.
Bondholders are being asked to swap all their claims for 10 percent of the equity in the reorganized company. The offer is contingent on cutting at least half of GM’s $20.4 billion of obligations to a United Auto Workers retiree-medical fund, known as a Voluntary Employee Beneficiary Association, through a debt- for-equity exchange that would give the VEBA as much as 39 percent of common stock in the Detroit-based carmaker.
“This is an offer that’s designed to fail,” said Kip Penniman, an analyst at fixed-income research firm KDP Investment Advisors in Montpelier, Vermont. “To get 90 percent of them to agree to such a deal where there’s no cash, no other debt and pure equity while leaving the union VEBA arrangement unchanged from previous considerations is absurd.”
http://www.bloomberg.com/apps/news?p...SGk&refer=home
The rationale for why exactly the gov is doing this is getting fuzzier and fuzzier. The employee cuts, 21,000, are are going to take UAW at GM down to 40,000. The UAW ownership stake is VEBA, the retirement fund, not the UAW. If you think that is a fine point, you don't understand what is going on. The fact that UAW will administer the stock is academic, the stock is being doled out to cover the already retired ex workers.
So why are they getting special treatment? That's obvious. But Fritz announced today that GM is pulling the plug on 2600 dealerships. If those dealerships average 50 employees each, that's 130,000 people going to be out of work. If they are 100 each, 230,000 unemployed. And many of them worked just as long and just as hard as UAW workers but no one seems to care very much about their retirement. Probably because they don't have any. And no union contract either.
But after this tragedy plays out, GM will have gotten through one stage. Then they have to become a viable company. Who will loan them money in the future? The same bondholders that are being shafted now? Only if they have taken TARP money and the gov blackmails them. Is the $40K+ Volt the salvation in a world where Toyota and Honda are already in a price "war" with $20K hybrids? I know the Volt is a plug in hybrid but Toyota and Honda won't be that far behind. And I doubt they will add $20K to the price. Will the dozens of CTS variants be the salvation of Caddy? Who knows. But once you get passed this current "crisis" GM has to become viable. And they have to do it with 89% (as of now) of the company owned and run by the UAW retirees and the gov. Long odds at best IMO.
Those bondholders have already spoken so the ball is already back in the gov's court, GM management is nothing more than a conduit now.
April 27 (Bloomberg) -- General Motors Corp. bondholders find the automaker’s offer to exchange their $27 billion in debt for equity unlikely to succeed, according to a person familiar with the committee representing creditors.
That’s because the offer by GM, the biggest U.S. automaker, treats bondholders worse than other claimants, such as unions, said the person, who declined to be identified because the discussions are private. At least 90 percent in principal amount of the notes must be exchanged by June 1 to satisfy the U.S. Treasury and avert a bankruptcy, GM said today in a statement.
Bondholders are being asked to swap all their claims for 10 percent of the equity in the reorganized company. The offer is contingent on cutting at least half of GM’s $20.4 billion of obligations to a United Auto Workers retiree-medical fund, known as a Voluntary Employee Beneficiary Association, through a debt- for-equity exchange that would give the VEBA as much as 39 percent of common stock in the Detroit-based carmaker.
“This is an offer that’s designed to fail,” said Kip Penniman, an analyst at fixed-income research firm KDP Investment Advisors in Montpelier, Vermont. “To get 90 percent of them to agree to such a deal where there’s no cash, no other debt and pure equity while leaving the union VEBA arrangement unchanged from previous considerations is absurd.”
http://www.bloomberg.com/apps/news?p...SGk&refer=home
The rationale for why exactly the gov is doing this is getting fuzzier and fuzzier. The employee cuts, 21,000, are are going to take UAW at GM down to 40,000. The UAW ownership stake is VEBA, the retirement fund, not the UAW. If you think that is a fine point, you don't understand what is going on. The fact that UAW will administer the stock is academic, the stock is being doled out to cover the already retired ex workers.
So why are they getting special treatment? That's obvious. But Fritz announced today that GM is pulling the plug on 2600 dealerships. If those dealerships average 50 employees each, that's 130,000 people going to be out of work. If they are 100 each, 230,000 unemployed. And many of them worked just as long and just as hard as UAW workers but no one seems to care very much about their retirement. Probably because they don't have any. And no union contract either.
But after this tragedy plays out, GM will have gotten through one stage. Then they have to become a viable company. Who will loan them money in the future? The same bondholders that are being shafted now? Only if they have taken TARP money and the gov blackmails them. Is the $40K+ Volt the salvation in a world where Toyota and Honda are already in a price "war" with $20K hybrids? I know the Volt is a plug in hybrid but Toyota and Honda won't be that far behind. And I doubt they will add $20K to the price. Will the dozens of CTS variants be the salvation of Caddy? Who knows. But once you get passed this current "crisis" GM has to become viable. And they have to do it with 89% (as of now) of the company owned and run by the UAW retirees and the gov. Long odds at best IMO.
04-27-09, 12:11 PM
#11
Lexus Champion
The only business plan I can see working is the Google philosophy.
Google buys GM and gives away all the cars.
As good as they now are (relative to old versions) nobody wants the mediocre Malibu or gas-guzzling Tahoe.
Pontiac, RIP. At least a decade overdue!
Hummer should go away, too. And maybe even Saturn.
GM needs only two divisions: Chevrolet and Cadillac.
It should have gone into BK last year. I knew this was going to happen - lots and lots of tax dollars down the crapper. You know, in American business, sometimes businesses fail. It's not the end of the world!
Google buys GM and gives away all the cars.
As good as they now are (relative to old versions) nobody wants the mediocre Malibu or gas-guzzling Tahoe.
Pontiac, RIP. At least a decade overdue!
Hummer should go away, too. And maybe even Saturn.
GM needs only two divisions: Chevrolet and Cadillac.
It should have gone into BK last year. I knew this was going to happen - lots and lots of tax dollars down the crapper. You know, in American business, sometimes businesses fail. It's not the end of the world!
04-27-09, 01:30 PM
#12
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It's ashame that they let a good brand be diluted into nothing.
04-27-09, 01:40 PM
#13
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As part of the revised Viability Plan and the need to move faster and further, GM in the U.S. will focus its resources on four core brands, Chevrolet, Cadillac, Buick and GMC. The Pontiac brand will be phased out by the end of 2010.
04-27-09, 03:19 PM
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wait my head is still spinning, they are going to go bankrupt and remerge with the UAW union still there? Are you freaking kidding me? WOW