GM Burning Cash Article

[enzl]

Read this whole thread a moment ago and while I see the financial and business decision makes sense to cut the loss leading GMNA off from the profitable other units the company would lose its image and heart. The soul of the company is Detroit. The passion is still there (as the Camaro has demonstrated). GME would never have produced the Camaro and without GMNAs efforts Holden would have turned out the Coupe 60, which while nice is nothing as emotion provoking or powerful as the Camaro has been for the company).

That being said the divorce of Corvette brings up a good point. For decades it has been the pinnacle Chevrolet but lets face it (it isn't a Chevrolet). The only things it shares w/ the brand are the truck based V8 engines, and interior electronics. I think making Corvette it's own brand has merit (there is a reason the idea was floated previously).

Chevrolet as a brand could be a Porche challenger moreso than any other brand. Take the Kappa cars away from Pontiac, Opel, Daewoo and Saturn and turn that into the theorized Corvette Stingray model. Offer the 2.0 DI turbo engine only (may be a 2.4 DI Turbo later) w/ upgraded interior materials. The base Corvette continues on as the volume model w/ the Z06 as a high end model and the ZR1 as the supercar. The Kappa car production could move to the XLR line, as it needs to be killed as well, at the Bowling Green plant.

As for marketing and distribution I say kill Hummer and remodel those stores to sell the Corvettes (after getting rid of the all terrain courses of course ). Also raise the prices a little to pay for better interior materials, a major problem for Porche conquest sales.

NOOOOOOOOO!

No more brands! They can't manage or develop product for the ones they have. Also, you're screwing Chevy dealers--your volume retailer.

The 'vette is fine where it is. Sell Hummer, Sell Saab---anything but more needless complication. Why would you tinker with Corvette retailing when they sell every one they make?

How about pruning the mid-management white collar ranks at GM? How about cutting the Executive Pay and tie it to company performance--how about stripping RW, Lutz, et al. of their bankruptcy-proof golden parachutes and make 'em earn it?

There are a million ways to improve GM without screwing with its one iconic symbol. There are many ways to streamline and improve product development without more senseless reorganization. Keep GME developing small cars--and have them e-mail the plans to NA--you don't need GME to run NA. They've never proven competent in running their own empire.

GM needs to hunker down, continue to produce good or better product and pray that the current June 08 NA Market Annualized selling rate of 12.5million cars recovers quickly. That's right--the entire market for New Vehicles is running at a 20% lower rate than GM's geniuses estimated (16mill). For the unaware, that's a D3 death sentence.

Time to get to work, guys. Forget about putting a birthday candle on this turd. It's product, product, product from here on out...

[Intrepidation]

NOOOOOOOOO!

No more brands! They can't manage or develop product for the ones they have. Also, you're screwing Chevy dealers--your volume retailer.

The 'vette is fine where it is. Sell Hummer, Sell Saab---anything but more needless complication. Why would you tinker with Corvette retailing when they sell every one they make?

How about pruning the mid-management white collar ranks at GM? How about cutting the Executive Pay and tie it to company performance--how about stripping RW, Lutz, et al. of their bankruptcy-proof golden parachutes and make 'em earn it?

There are a million ways to improve GM without screwing with its one iconic symbol. There are many ways to streamline and improve product development without more senseless reorganization. Keep GME developing small cars--and have them e-mail the plans to NA--you don't need GME to run NA. They've never proven competent in running their own empire.

GM needs to hunker down, continue to produce good or better product and pray that the current June 08 NA Market Annualized selling rate of 12.5million cars recovers quickly. That's right--the entire market for New Vehicles is running at a 20% lower rate than GM's geniuses estimated (16mill). For the unaware, that's a D3 death sentence.

Time to get to work, guys. Forget about putting a birthday candle on this turd. It's product, product, product from here on out...

I agree with everything said here.

[Oracle of Delphi]

Keep GME developing small cars--and have them e-mail the plans to NA--you don't need GME to run NA. They've never proven competent in running their own empire.

No offense enzl, but this is happening as we speak, key people are already in place in GMNA, and more arrive everyday from GME. Look for total control of GM by the end of 2010 or the beginning of 2011.

[ZL-1]

GM needs to hunker down, continue to produce good or better product and pray that the current June 08 NA Market Annualized selling rate of 12.5million cars recovers quickly. That's right--the entire market for New Vehicles is running at a 20% lower rate than GM's geniuses estimated (16mill). For the unaware, that's a D3 death sentence.

Are there news articles/sources for those 12.5million annualized numbers? Not that I'm doubting you, but I'd like to have a source for something I'm working on :AH-HA_wink:

Edited June 18, 2008 by ZL-1

[enzl]

Are there news articles/sources for those 12.5million annualized numbers? Not that I'm doubting you, but I'd like to have a source for something I'm working on :AH-HA_wink:

Sure.

CNN/Money

http://money.cnn.com/news/newsfeeds/articl...7ed87997747.htm

"Lache said that based on a recent survey of dealers, U.S. sales of light vehicles appear to be tracking at about 13 million units for the first half of June on a seasonally adjusted annual sales rate basis."

And...

Detroit Free Press (A homer paper, which is even more distressing)

http://freep.com/apps/pbcs.dll/article?AID...1/1210/BUSINESS

But sales were 7% to 8% below that rate in April and May. And so far in June, he said, J.D. Power and Associates and Citigroup are seeing a sales pace that is almost 20% lower -- only 12.5 million vehicles per year.

[enzl]

No offense enzl, but this is happening as we speak, key people are already in place in GMNA, and more arrive everyday from GME. Look for total control of GM by the end of 2010 or the beginning of 2011.

None taken. And I don't wish to offend you, but this whole thing is perplexing.

This change is just in time to really benefit from the new labor/healthcare agreements.

PCS-since you might know--why is GME being given this assignment? I'd be interested to hear the internal rationale for inserting GME into NA, other than product--which as we all know can be done anywhere on the planet, given the state of tech today.

Is CPF in line for the throne? Because that's the only reason that makes sense.

Edited June 18, 2008 by enzl

[Oracle of Delphi]

None taken. And I don't wish to offend you, but this whole thing is perplexing.

This change is just in time to really benefit from the new labor/healthcare agreements.

PCS-since you might know--why is GME being given this assignment? I'd be interested to hear the internal rationale for inserting GME into NA, other than product--which as we all know can be done anywhere on the planet, given the state of tech today.

Is CPF in line for the throne? Because that's the only reason that makes sense.

You answered your own question! :AH-HA_wink:

[enzl]

You answered your own question! :AH-HA_wink:

Then a polite series of foll-ups:

Why? What has CPF done to justify said appointment?

(If that justification is GME's break-even status, is that such an accomplishment? If so, I'll send a resume. Saab is still awful, Opel is about to be kneecapped by Chevy & the man responsible is GM's pick for savior?)

If true, this is the best GM can muster as RW's replacement when they're circling the toilet as we write?

[Oracle of Delphi]

Then a polite series of foll-ups:

Why? What has CPF done to justify said appointment?

(If that justification is GME's break-even status, is that such an accomplishment? If so, I'll send a resume. Saab is still awful, Opel is about to be kneecapped by Chevy & the man responsible is GM's pick for savior?)

If true, this is the best GM can muster as RW's replacement when they're circling the toilet as we write?

He will replace an older gentleman 1st. Then we will see where CPF goes after that. Look for a new title for him around 2010-2011 most likely (Vice Chairman of product development).

He has a loyal following of people that work for him or report to him inside of GME and out. He is also well respected by his peers within GM and other car makers. I would follow him to Hell and back.

And although you downplay his accomplishments, considering where Opel was, he has turned GME around in a very short period of time. Russia alone proves he is doing the right thing, we are seeing double digit growth there and let's not forget Russia has all that oil wealth, so it's citizens will have access to cheap fuel for a long long time.

I personally admire CPF, he doesn't pull punches and tells it like it is, whether good or bad.

Check out his personal blog at GM, and yes he really does write it himself.

Link: http://drivingconversations.gmblogs.com/20...will_it_go.html

Edited June 18, 2008 by Pontiac Custom-S

[ZL-1]

Thanks!

[enzl]

He will replace an older gentleman 1st. Then we will see where CPF goes after that. Look for a new title for him around 2010-2011 most likely (Vice Chairman of product development).

He has a loyal following of people that work for him or report to him inside of GME and out. He is also well respected by his peers within GM and other car makers. I would follow him to Hell and back.

And although you downplay his accomplishments, considering where Opel was, he has turned GME around in a very short period of time. Russia alone proves he is doing the right thing, we are seeing double digit growth there and let's not forget Russia has all that oil wealth, so it's citizens will have access to cheap fuel for a long long time.

I personally admire CPF, he doesn't pull punches and tells it like it is, whether good or bad.

Check out his personal blog at GM, and yes he really does write it himself.

Link: http://drivingconversations.gmblogs.com/20...will_it_go.html

I'm not denigrating the man...I just don't look at GME's accomplishments as particularly impressive. Under your theory, his success is dwarfed by Fiat's new management---they took an independant, smaller company and revitalized it while knocking on death's door--plus, their expertise in making a buck with small cars is EXACTLY what GM needs right now.

I have no doubt that CPF is a good guy and knows what good product is (although one of my immediate concerns is that Opel's product has been on the good side of average rather than excellent and Saab's non-existant). My fear is that (again) GM is reaching into it's ranks and pulling someone up who has the right connections (as you readily admit, he's well liked) rather than someone with a true vision of how GM will survive into this century.

Also, I don't put much credence into the Russia thing. Ford is also kicking ass there---and they've been FUBAR for years without direction. The BRIC countries are growing and becoming richer, thus an automotive market that never existed before will exhibit strong growth for early entries, followed by the inevitable plateau once the world's player's all start to truly compete there.

None of my objections are set in stone, but I personally believe that GM needs to think very far outside the box when the inevitable happens and RW is forced to fall on his sword--this next leadership has to be perfect in execution--and someone steeped in the miasma that is GM's beauracracy isn't my idea of an ideal pick.

[The O.C.]

None of my objections are set in stone, but I personally believe that GM needs to think very far outside the box when the inevitable happens and RW is forced to fall on his sword--this next leadership has to be perfect in execution--and someone steeped in the miasma that is GM's beauracracy isn't my idea of an ideal pick.

SO true.

They really, really, really need to put The Good Ole Boys Network out to pasture........for good.....

Lutz, as one example, is better off to begin with because of his experience outside the tubes.....Chrysler, BMW, etc., etc.....but for a company the size and relevance of General Motors, you need way more than just one "Lutz."

[turbo200]

Check out his personal blog at GM, and yes he really does write it himself.

Link: http://drivingconversations.gmblogs.com/20...will_it_go.html

I'm not going to pretend like I know the man, and I don't base my understanding of people on three short articles, it's also thier work and continuous demonstrations of character. however, this does give insight into the character of the man, he seems even-handed and his understanding seems far-reaching, he seems like he has a perspective on the scope of the worldwide market. that's good. if his accomplishments are as you paint them, he could very well be a natural successor...

in reference to the time for perfect execution, I beleive with the pressures on the market and GMNA's own precarious position, I believe the time is now and the next two years....the car industry in America may undergo radical change in the next few years

Edited June 19, 2008 by turbo200

[97regalGS]

I don't care if your name is Jesus Christ, you don't get promoted to be the lead dog of GM based on your good graces. You have a politically minded group of people pulling you up and an equally politically minded group pushing you. This is just a different old boys club making their way to the top.

[CARBIZ]

The same people who think 'insiders' like Wagoner couldn't sell ice in a Casbah are the same people who think elections are decided by the electorate.

The political process and the pressure cooker in big business are one and the same. You have to be a scrapper and a fighter to get to the top, whether it's the Republican party or GM.

[IfICouldWouldYou?]

How do we explain the Board's actions in all this? Are they all a bunch of fools? Is Rick so smooth that he has them all hoodwinked? I can't believe that these learned men and woman can't see the bigger picture.