GM in deep Doo-Doo

[nychot]

NEW YORK (CNNMoney.com) -- General Motors Corp. said Tuesday it will suspend its dividend, sell off $4 billion to $7 billion worth of assets, and cut 20% worth of salaried cash costs.

CEO Rick Wagoner said in a statement that these were "difficult decisions," but necessary for company survival in the weak economy.

GM (GM, Fortune 500) has lost about one third of its 107,000 U.S. hourly workers since 2004. GM offered buyouts to its entire remaining U.S. hourly workforce of 74,000 in February, in a bid to unload its more experienced, higher-paid employees.

The Detroit-based automaker has been hard-hit by record-high gas prices, economic weakness, and a waning consumer interest in trucks and sport utility vehicles. The company has not made a profit since 2005.

Truck sales were down 21% in the first six months of 2008, while car sales were down 9% and Hummer sales plunged 40%. Overall, GM's vehicle sales were down 16%: worse than the industrywide vehicle sales decline of 10%.

[wpage]

GM really needs to pull a hat trick. They could...

-Come out with a revolutionary hydrogen engine that gets super MPG

-Unveil a advanced transmission that has the 5 to 10 gears needed to make the current engine line up competitive with other manufactures

Since the late 70's when we had the 1st go round with OPEC the Japaneese and others have been eroding their embeded base of customer with fuel efficient vehicles.

The GM brand has improved slowly. However now its crunch time and with the current pressure I really hope engineering and design can step up to the challenges for the sake of the workers...

Whatever it is they do this time. It better happen fast!

[rck0025]

I think the only thing that is going to save the automotive industry (especially GM) is technological innovation.

However, I think GM's business model has been broke for a loooooong time. The rise in oil prices, coupled with the financial crisis is just the straw (in my humble opinion) that broke the camel's back.

How many versions of the same truck and car under 5 different brands did they ever expect to sell?

[lamric]

General Motor's car czar, Bob Lutz, sat down with the little people of the blogosphere after GM's announcement that it would be reducing white collar expenditures by 20-percent, cutting truck production and eliminating retired health care for salaried workers over 65, all in an effort to boost its liquidity by $15 billion by the end of 2009.

Maximum Bob addressed questions about GM's entire brand portfolio, saying, "Pontiac will be nourished with products" and confirming that GM is in talks with financial institutions about HUMMER, and that, "If we could sell the brand, we'd be interested in doing that."

Predictably, much of the conversation centered on fuel efficiency and the General's plans to address the growing demand for miserly transport in the U.S. Lutz made it clear that "as fuel costs in the U.S. begin to resemble those in the rest of the world" it will be easier for GM to realign its products on a global scale.

So what about the Chevy Beat? The subcompact hatch is slated to arrive in Europe next year as the Spark, replacing the vehicle that shares the same name. However, GM didn't intend for the Beat (or Spark) to be offered in the U.S., so it doesn't meet federal safety and crash standards. It would take too much money and about two years to bring the Beat up to snuff for sales in the U.S., so Lutz conceded that it wouldn't be coming to the U.S. until the next generation arrives... whenever that is.

In more unfortunate news, the Chevrolet Cruze, set to debut in Paris and with sales beginning next year in Europe, won't be replacing the Cobalt in the U.S. anytime soon. Lutz maintains that the current Cobalt is "no where near the end of its life-cycle" and that it's "finally coming into its own" in the U.S. market. When the Cruze does debut, expect an interior that's a cross between the Cobalt and the Malibu, and powered by a turbocharged 1.4-liter four-pot that will get 40+ mpg.

When asked about Saturn, Lutz was insistent that GM "likes the brand," but is concerned that the franchise isn't generating enough volume. While earlier reports suggested that Saturn would short-cycle the Aura and replace it with the Opel/Vauxhall Insignia, Lutz says that it won't be coming forthright.

When the 2008/2009 show season ramps up, expect GM to debut several new compact crossovers that are significantly smaller than the Lambda CUVs currently on sale. Lutz wouldn't elaborate on what brands would be getting these new cute 'utes, but expect them to span GM's portfolio.

On a completely unrelated tangent, Lutz divulged a few tidbits about his personal rides, which include a Saturn Sky Redline, an Aura and four (count 'em, four) Segways. Go figure...

http://www.autoblog.com/2008/07/15/l...y-insignia-st/

[H3 Builder]

Originally Posted by rck0025

I think the only thing that is going to save the automotive industry (especially GM) is technological innovation.

However, I think GM's business model has been broke for a loooooong time. The rise in oil prices, coupled with the financial crisis is just the straw (in my humble opinion) that broke the camel's back.

How many versions of the same truck and car under 5 different brands did they ever expect to sell?

You haven't looked at GM products lately. They don't do that anymore. You don't see more than 2 of a like vehicle at GM divisions.

[lamric]

Except for the Outlook, Traverse & Acadia.

[rck0025]

Originally Posted by H3 Builder

You haven't looked at GM products lately. They don't do that anymore. You don't see more than 2 of a like vehicle at GM divisions.

ya I guess your right considering the Saab 9-3 is virtually the same as the malibu, pontiac g-6(or whatever its called) and one of the Saturn models(i want to say the aura). Also, I know the Swedes converted much of the Saab technology into the previous model CTS. Not to mention the H3 is based on the same truck frame as the Colorado. And if I remember correctly, the H2 was built on a Tahoe/suburban frame with a beefed up suspension (i dont think its changed much). But at least the emblems are different and they do mix and match engine types.

Although, I do love GM products for the price, and the fact that four members of the fam. are GM engineers or are retired GM engineers make me somewhat of fanboy. GM vehicles to date: 2001 Camaro SLP SS, 2007 Saab 9-3 Aero, and 2008 H3 Alpha. The rents love their XLR's and Sis, well, she's beating the hell out of her CTS-V. The rest of the fam. is loaded up on Vettes and a smattering GMC and Chevy trucks - but I'll look into those new models you were talking about. I hear the Cobalt is pretty innovative and fun.

[RazM]

Originally Posted by rck0025

ya I guess your right considering the Saab 9-3 is virtually the same as the malibu, pontiac g-6(or whatever its called) and one of the Saturn models(i want to say the aura). Not to mention the H3 is based on the same truck frame as the canyon and the Colorado. And if I remember correctly, the H2 was built on a Tahoe/ suburban frame with a beefed up suspension (i dont think its changed much). But at least the emblems are different and they do mix and match engine types.

Although, I do love GM products for the price, and the fact that four members of the fam. are GM engineers or are retired GM engineers.

This crap is still floating around? How many times does it have to be shot down before the masses finally 'get it'?

The H3 is NOT built on the same frame as the colorado/canyon. They share about 2 crossmembers that aren't modified, everything else has been modified to work with the H3, not to mention the H3 frame has been boxed.

The H2 is also NOT built on the Tahoe/Burban frame, it's a new frame built from 3 components, the center piece being new and the front and back are heavily modified frame components from other GM trucks. The key here is HEAVILY modified.