February 2009 Sales: General Motors

[DBeaSSt]

http://media.gm.com/servlet/GatewayServlet...amp;docid=52742

Click the link for the charts.

GM Reports 127,296 Deliveries in February

* Chevrolet retail cars continue to gain share, led by Malibu's 33 percent retail sales gain compared with last year

* Chevrolet Traverse, GMC Acadia, Buick Enclave and Saturn Outlook drive mid-utility crossover retail sales up 35 percent, share up 10 percentage points, compared with a year ago

* GMAC retail penetration increased dramatically to more than 30 percent of sales in February; Credit Union-financed sales now about 10 percent of total

DETROIT - General Motors dealers in the United States delivered 127,296 vehicles in February, down 52.9 percent compared with a year ago, driven by a 75 percent reduction in fleet sales. However, GM's car sales compared with January were up nearly 23 percent, and crossover sales increased 6 percent, as financing availability continued to improve and slightly more fleet orders were able to be filled. Retail sales for the month were off 43 percent compared with a year ago in a total industry vehicle market estimated to be the weakest February since 1967.

"It remains a tough and challenging market, but seeing some upticks in volume and showroom traffic compared with last month is encouraging. Our new products continue to take hold in the market and we are estimating retail share increases with Malibu, Traverse, Enclave, HHR, Cobalt and G6. This is in line with our viability plan which is focused on passenger cars and crossovers in addition to our strong truck lineup," said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. "With the 2010 Camaro launching this month, closely followed by the Buick LaCrosse, Chevy Equinox and GMC Terrain, we are adding even more world-class, fuel-efficient cars and crossovers to our lineup."

GM February total car sales of 53,813 were off 50 percent and total truck sales (including crossovers) of 73,483 were down 55 percent compared with a year ago.

The newly-launched Chevrolet Traverse crossover continues to gain traction in the marketplace with total sales of more than 6,400 vehicles, up 23 percent from January. Chevrolet's crossover portfolio of HHR, Equinox and Traverse combined for 11,796 retail sales in February, a 7 percent increase compared with last year. Malibu retail sales were up 33 percent compared with a year ago.

"All of our new product launches in the 2009-2014 timeframe are cars or crossovers, and with outstanding products like Malibu and Traverse already in the market, we're building on a strong foundation," LaNeve added. "We saw customers respond to our 0 percent reduced rate APR and bonus cash offers last month, so we're doing what we can to keep sales rolling by extending most of those offers into March."

A total of 1,087 GM hybrid vehicles were delivered in the month, illustrating the wide range of hybrid product offerings available. GM offers the Chevrolet Malibu, Tahoe and Silverado, GMC Yukon and Sierra, Cadillac Escalade, Saturn Aura and Vue hybrids. So far, in 2009, GM has delivered 2,010 hybrid vehicles.

GM inventories dropped compared with a year ago. At the end of February, only about 781,000 vehicles were in stock, down about 160,000 vehicles (or 17 percent) compared with last year. There were about 337,000 cars and 444,000 trucks (including crossovers) in inventory at the end of February. Inventories were reduced about 20,000 vehicles compared with January.

Certified Used Vehicles

GM certified total sales for February 2009 were down, impacted by the uncertain economic environment. GM Certified Used Vehicles, Saturn Certified Pre-Owned Vehicles, Cadillac Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, combined sold 33,014 vehicles.

GM Certified Used Vehicles, the industry's top-selling certified brand, posted February sales of 28,204 vehicles, down 25 percent from February 2008. However, several brands saw an increase in sales from February 2008. Saturn Certified Pre-Owned Vehicles sold 828 vehicles, up 17 percent. Cadillac Certified Pre-Owned Vehicles sold 3,303 vehicles, up 1 percent. Saab Certified Pre-Owned Vehicles sold 476 vehicles, up 4 percent, and HUMMER Certified Pre-Owned Vehicles sold 203 vehicles, up 31 percent.

"Despite slow sales in February, the Certified Pre-Owned Program continues to be a bright spot for GM, our dealers and the automotive industry as a whole," said LaNeve. "In particular, we are proud of the strong performance of our luxury CPO brands that continue to show good growth year-over-year. We are providing a tremendous value for customers and dealers in very challenging times for the industry and economy."

GM North America Reports February 2009 Production; Q1 2009 Production Forecast remains at 380,000 Vehicles; Initial Q2 2009 Production Forecast at 550,000 Vehicles

In February, GM North America produced 135,000 vehicles (37,000 cars and 98,000 trucks). This is down 215,000 vehicles or 61 percent compared with February 2008 when the region produced 350,000 vehicles (129,000 cars and 221,000 trucks). (Production totals include joint venture production of 7,000 vehicles in February 2009 and 22,000 vehicles in February 2008.)

The region's 2009 first-quarter production forecast remains unchanged from last month's projection of 380,000 vehicles (118,000 cars and 262,000 trucks), which is down about 57 percent compared with a year ago. GM North America built 885,000 vehicles (360,000 cars and 525,000 trucks) in the first-quarter of 2008.

The region's 2009 second-quarter production forecast is initially set at 550,000 vehicles (195,000 cars and 355,000 trucks), which is down about 34 percent compared with a year ago. GM North America built 834,000 vehicles (382,000 cars and 452,000 trucks) in the second-quarter of 2008.

General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Hummer, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's largest national market is the United States, followed by China, Brazil, the United Kingdom, Canada, Russia and Germany. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Note: GM sales and production results are available on GM Media OnLine at http://media.gm.com/us/gm/en by clicking on News, then Sales/Production. In this press release and related comments by General Motors management, we use words like "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions to identify forward-looking statements, representing our current judgment about possible future events. We believe these judgments are reasonable, but actual results may differ materially due to a variety of important factors. Among other items, such factors might include: our ability to comply with the requirements of our credit agreement with the U.S. Department of Treasury; the availability of funding for future loans under that credit agreement; our ability to execute the restructuring plans that we have disclosed, our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; and changes in general economic conditions, market acceptance of our products; shortages of and price increases for fuel; significant changes in the competitive environment and the effect of competition on our markets, including on our pricing policies. GM's most recent annual report on Form 10-K and quarterly report on Form 10-Q provide information about these factors, which may be revised or supplemented in future reports to the SEC on Form 10-Q or 8-K.

[CaddyXLR-V]

Pontiac's sales have decreased less than any other brand including Chevy and Buick, even more so when comparing car sales only. Also, G8 sold 2700, up over 1000 compared to last month, even when other brands cars are falling compared to last months sales. Why is Pontiac the one to go again?

[smk4565]

GM can try to spin it, but down 53% overall and 43% down in retail is really bad. The Lucerne was down 73% and DTS down 68%, yet they want to make a front drive big Cadillac? No one wants big huge front drive luxury cars. Hummer is embarrassing; they need to go away. I think that is the G8's best month ever, big discounts or fleet sales? I don't like the G8 because it is a Holden clone, but a zeta Chevy sedan designed specifically for the American market could do well, especially when Chrysler folds and they can pick up Charger/300 sales.

[ZL-1]

Taking a page from Toyota's PR approach, this month's release will be retitled as 'best evah decline in sales!'

Edited March 3, 2009 by ZL-1

[FUTURE_OF_GM]

So... Apparently the G8 line outsold ALL of Scion this month.

Anyone still believe that Pontiac isn't important?

And, BTW, the G8 also outsold the Aura.

But no surprise, since the G8 has faired better than most other GM cars through this downturn.

(I'm just sayin' Shows what a little bit of marketing can do)

Edited March 3, 2009 by FUTURE_OF_GM

[FAPTurbo]

I don't like the G8 because it is a Holden clone, but a zeta Chevy sedan designed specifically for the American market could do well, especially when Chrysler folds and they can pick up Charger/300 sales.

I'd understand if the G8 were a rebadge of another vehicle on our shores, but why does it bug you that the G8 is a Holden?

[CaddyXLR-V]

I'd understand if the G8 were a rebadge of another vehicle on our shores, but why does it bug you that the G8 is a Holden?

Because he likes world class RWD cars, unless they were sourced from Holden, because that somehow makes them second rate. Kind of like how Jaguar is seen compared to BMW/Mercedes buyers.

[GXT]

Wow... a lot of slight of hand in that release, especially around the fleet #s.

"driven by a 75 percent reduction in fleet sales"

"and slightly more fleet orders were able to be filled"

The plan GM recently put out indicated that fleet sales went from (IIRC) ~24% to ~33%. They didn't break out cars/trucks as they do in their yearly report, but I'd be surprised if that didn't have a large car component.

Think about that, GM probably only sold ~85,000 retail vehicles in Feb.

[gm4life]

Pontiac had a great month seriously considering they were down only 40%! The G8 had great sales but also nice rebates still impressive. Honestly I feared worse so along with everyone elses big slide including Toyota I say good job.

[regfootball]

saturn and pontiac both outsell buick. why is the buick brand being given the chops? this goes to show you why GM needs a housecleaning.

g8 sold well. i like that it did, but rwd champions need to also get that you compare rwd GM sedan sales to FWD GM sedan sales and what is the percent. again that is why they make so many fwd cars.

reagarding scion. lets see how much more their ass gets spanked when the Kia Soul starts outselling scion division singlehandedly and by a margin of 4 to 1. even with the ugly ass nissan cube trying to spoil the party.

[regfootball]

So... Apparently the G8 line outsold ALL of Scion this month.

Anyone still believe that Pontiac isn't important?

And, BTW, the G8 also outsold the Aura.

But no surprise, since the G8 has faired better than most other GM cars through this downturn.

(I'm just sayin' Shows what a little bit of marketing can do)

the malibu is eating the auras lunch now. not fair why it is. but it is. the epsilons overall plus impala cream the g8.

[ShadowDog]

Pontiac's sales have decreased less than any other brand including Chevy and Buick, even more so when comparing car sales only. Also, G8 sold 2700, up over 1000 compared to last month, even when other brands cars are falling compared to last months sales. Why is Pontiac the one to go again?

Not enough money to make them all go 'round.

[CaddyXLR-V]

Not enough money to make them all go 'round.

So then there will be more money to go around once Pontiac is killed? I think less.

[gm4life]

So then there will be more money to go around once Pontiac is killed? I think less.

Yup, exactly no Pontiac equals less sales, less profit, and lots of pissed of loyal GM owners of Pontiac and other GM vehicles.

[smk4565]

I'd understand if the G8 were a rebadge of another vehicle on our shores, but why does it bug you that the G8 is a Holden?

Cheap plastic interior, like the GTO (or Astra or Catera) it doesn't quite have the design or features to really fit the American market. Such as no Nav system.

[Drew Dowdell]

So... Apparently the G8 line outsold ALL of Scion this month.

And, BTW, the G8 also outsold the Aura.

Just needed to be said again and bolded.

[Drew Dowdell]

Because he likes world class RWD cars, unless they were sourced from Holden, because that somehow makes them second rate. Kind of like how Jaguar is seen compared to BMW/Mercedes buyers.

You mean like that XF which is on an updated version of the old S-type DEW98 platform which was based on the Lincoln LS and now underpins the Mustang yet after all that somehow ends up looking like an MKS Vanden Plas? That Jaguar?

[Oracle of Delphi]

Stark and sad ...

[smk4565]

You mean like that XF which is on an updated version of the old S-type DEW98 platform which was based on the Lincoln LS and now underpins the Mustang yet after all that somehow ends up looking like an MKS Vanden Plas? That Jaguar?

But that Jaguar was on the Car and Driver 10 best list, Automobile All Star list, and won comparison tests by Edmunds.com and Motor Trend. It is an award winning machine, and that was with the old 4.2 liter engine, with the new 5.0 is is going to be even stronger. Jaguar sales were up in 2009 while everyone else went down, so the car is doing it's job.

[toyoguy]

So... Apparently the G8 line outsold ALL of Scion this month.

not quite there

Edited March 4, 2009 by toyoguy

[regfootball]

Yup, exactly no Pontiac equals less sales, less profit, and lots of pissed of loyal GM owners of Pontiac and other GM vehicles.

as long as the lefties, greenies, CR bangers, college professors, journalists, uptight rich whiteys, self obsorbed youngsters and trendies, and otherwise confused 'can't make up their mind themselves so someone has to tell them what to buy' set are happy, that means GM must cut their second biggest selling car brand.

[regfootball]

not quite there

doesn't hide the fact that scion is being ridiculed and generally ignored, now, like 5 years after it was spawned. Toyota needs to kill brands and get rid of underperforming and inefficient marketing channels.

[ShadowDog]

So then there will be more money to go around once Pontiac is killed? I think less.

Exactly how much money do you think they're making/losing with each sale?

[SAmadei]

Cheap plastic interior, like the GTO (or Astra or Catera) it doesn't quite have the design or features to really fit the American market. Such as no Nav system.

Interesting the the Nav system is such a complaint. I guess the Australians actually know where they're going.

Just buy a TomTom... Pontiac very considerately put a little shelf there for you to put it in. I personally would rather put some aftermarket gauges there... to monitor the MP1900 underhood upgrade. ;-)

[CaddyXLR-V]

Exactly how much money do you think they're making/losing with each sale?

Well if GM has high fixed costs, cutting Pontiac won't make them go away will it? Nope, just less cars to spread those costs over.

[CaddyXLR-V]

You mean like that XF which is on an updated version of the old S-type DEW98 platform which was based on the Lincoln LS and now underpins the Mustang yet after all that somehow ends up looking like an MKS Vanden Plas? That Jaguar?

Yep, that one. But it won an award, so all is forgiven. How else will you be able to go around telling everyone you have an award winning car?

But the G8 has a cheap plastic interior like the GTO, which both have better interiors than almost all the rest of GM's cars with the exception of some Cadillacs. Maybe if it won an award the interior would look better?

And people wonder why RWD cars don't sell? Almost everyone on here who claims to love RWD, nitpicks everything on every RWD car. Too much plastic, has a B pillar, iDrive, not styled good enough etc. Personally, I take what I can get. If it has the price, the mechanicals, and they didn't mess up too badly on the rest, I'll take it.

Edited March 4, 2009 by CaddyXLR-V

[gm4life]

Well if GM has high fixed costs, cutting Pontiac won't make them go away will it? Nope, just less cars to spread those costs over.

Exactly my point. On a side note Scion is nearly dead that is interesting and one Pontiac RWD sports sedan nearly outsold the entire line-up. Hmmmmmmmmmm, sounds like even Toyota has a few "flops".

[gm4life]

as long as the lefties, greenies, CR bangers, college professors, journalists, uptight rich whiteys, self obsorbed youngsters and trendies, and otherwise confused 'can't make up their mind themselves so someone has to tell them what to buy' set are happy, that means GM must cut their second biggest selling car brand.

I certainly hope not. I don't believe this will happen. On a side note ALOT of young people were at the Pontiac display in Milwaukee and not very many young ones were in the Scion display.

[Drew Dowdell]

But that Jaguar was on the Car and Driver 10 best list, Automobile All Star list, and won comparison tests by Edmunds.com and Motor Trend. It is an award winning machine, and that was with the old 4.2 liter engine, with the new 5.0 is is going to be even stronger. Jaguar sales were up in 2009 while everyone else went down, so the car is doing it's job.

And every review of the G8 GT basically says that it's 5-series performance at 50% off. But there you go expecting a 5-series interior in a car that is 50% of the price. To put it another way, you could buy a GX GXP + a Solstice GXP and still have change left over for the price of a 550i. Oh yeah, and the G8 won Edmunds reader's "Most Wanted"

Oh wow. At Motor Trend, the XF won a comparison test against the 5 year old 5-series, 4-year old GS, and 3-year old E-class. That's a real tough one. The Edmunds test bravely throws the 4 year old A6 in place of the GS.

What you're not going to like... The Winding Road pits the XF against the CTS and calls it a tie.

[smk4565]

And every review of the G8 GT basically says that it's 5-series performance at 50% off. But there you go expecting a 5-series interior in a car that is 50% of the price. To put it another way, you could buy a GX GXP + a Solstice GXP and still have change left over for the price of a 550i. Oh yeah, and the G8 won Edmunds reader's "Most Wanted"

Oh wow. At Motor Trend, the XF won a comparison test against the 5 year old 5-series, 4-year old GS, and 3-year old E-class. That's a real tough one. The Edmunds test bravely throws the 4 year old A6 in place of the GS.

What you're not going to like... The Winding Road pits the XF against the CTS and calls it a tie.

But notice Edmunds and Motor Trend didn't include a Cadillac in those comparisons because Cadillac has no credible entry into the mid-level luxury sport sedan segment. And you are comparing the G8 to the same 5 year old 5-series. And wasn't the CTS supposed to challenge the 5-series, why is Pontiac? The G8 is a Charger with better handling, that is all, it is no 5-series. Doesn't mean it is a bad car for the money, but it isn't an elite sedan.

[Drew Dowdell]

But notice Edmunds and Motor Trend didn't include a Cadillac in those comparisons because Cadillac has no credible entry into the mid-level luxury sport sedan segment. And you are comparing the G8 to the same 5 year old 5-series. And wasn't the CTS supposed to challenge the 5-series, why is Pontiac? The G8 is a Charger with better handling, that is all, it is no 5-series. Doesn't mean it is a bad car for the money, but it isn't an elite sedan.

The CTS ties with the XF, yet doesn't have a credible entry in the mid-lux segment..... or Edmunds, Motortrend, and SMK can't get over their badge snobbery enough to realize that the CTS can run with those big dogs. They drove both cars through the Alpe-Maritimes. I've driven those roads and they are some of the most fun, most challenging, best driving roads I've ever been on. The CTS did it's job and did it well.

I did not say that the G8 was supposed to compete with the 5-series in the market. I said it handles with the 5-series. It has an acceptable interior for a family sedan. Not class leading, just acceptable. That it can perform like one of the best performing luxury sport sedans on the market makes it a great value.

You've been back less than a week and you're already getting on my nerves.

[BuddyP]

saturn and pontiac both outsell buick. why is the buick brand being given the chops? this goes to show you why GM needs a housecleaning.

I've said the same things since day one.

[BuddyP]

And, BTW, the G8 also outsold the Aura.

After being owner of a Aura XR, and having driven a 3.6L G8, I can clearly say the G8 is a nicer car. Don't get me wrong, we really like the aura but the suspension and overall interior comfort of the G8 is a whole lot better. The Aura's got more umph though.

[enzl]

Wow...it's incredible how little many posters here understand the extreme situation GM is in.

Pontiac being marginalized is necessary because they simply can't afford it:

-Marketing--can't do it properly, no $

-Developing new product---no $

-Surviving without a gov't handout---no $

It's not a matter of whether in an ideal world, Pontiac would thrive...we aren't living in that world!

GM loses money on nearly everything they sell! They lost a record amount of money last year---there's nothing left to sell, give away or cut, so now the major organs are being sold off or cut off.

The G8 is a fantastic product that they probably couldn't make a buck on, unless it was made here (w/ Camaro in Canada)--but, of course, that's not how they went about it.

Get over each announcement of cuts, product cancellations and all other bad news about GM. This train left the station years ago...as many pundits, professionals and posters have been ranting about for years! Teeth gnashing will not bring this rotted corpse back, it'll be the largess of the US taxpayer....

Maybe Rick W. should go now, guys? or should we wait until GM is gone?

[Drew Dowdell]

I've been with you for a while that Rick W. needs to go.

[CaddyXLR-V]

Wow...it's incredible how little many posters here understand the extreme situation GM is in.

Pontiac being marginalized is necessary because they simply can't afford it:

-Marketing--can't do it properly, no $

-Developing new product---no $

-Surviving without a gov't handout---no $

It's not a matter of whether in an ideal world, Pontiac would thrive...we aren't living in that world!

GM loses money on nearly everything they sell! They lost a record amount of money last year---there's nothing left to sell, give away or cut, so now the major organs are being sold off or cut off.

The G8 is a fantastic product that they probably couldn't make a buck on, unless it was made here (w/ Camaro in Canada)--but, of course, that's not how they went about it.

Get over each announcement of cuts, product cancellations and all other bad news about GM. This train left the station years ago...as many pundits, professionals and posters have been ranting about for years! Teeth gnashing will not bring this rotted corpse back, it'll be the largess of the US taxpayer....

Maybe Rick W. should go now, guys? or should we wait until GM is gone?

My point is that GM will be losing even more money without Pontiac. Cutting Pontiac will only make them fall faster. It is still GM's own fault they got themselves in this position by rebadging cars for 30 years for all their brands.

I'm getting to the point where I don't care if the whole company goes down, because Pontiac was really the only brand I had much interest in anyway.

Edited March 4, 2009 by CaddyXLR-V

[FAPTurbo]

But who would be nutso enough to take Wagoner's job?

[Farkas]

So... Apparently the G8 line outsold ALL of Scion this month.

While I hate to play devil's advocate...There were 2,705 G8's sold in February, and 3,699 Scion's sold(1). So while the G8 might outsell each individual Scion model, it hasn't quite eclipsed the brand. [/devil's advocate]

(1) Toyota 03/09 Sales Overview

-----

That being said, The G8 is doing pretty well in the current market, and without a doubt is one of my favorite GM models. I hope Pontiac can stick around, and maybe inject a little EXCITEMENT!!!!!! (I can't help myself today it seems) into the rest of the brand.

[smk4565]

The G8 represents GM product mismanagement. They had the Zeta platform and chance to make a flagship Chevy (like what the 300C did for Chrysler in 2005) and possibly a Buick version Either or both could have been GM's Genesis that got people to rethink the brand. Instead they did what was easy and just imported the G8 from Holden, but importing it is costing them too much, and the interior is behind a higher end Camry/Accord or even Malibu LTZ. Not to mention Pontiac's brand image is damaged from years of rebadges and fleet sales. There is just too much product overlap, too many dated products still in the lineup, and not enough real winners that will sell without a rebate and hold value.

Until 100% of GM's lineup is Malibu, CTS, Silverado, Corvette like products, sales will keep tanking. Saturn and Pontiac have just become Chevy clones and can go away. A Zeta sedan or Kappa roadster would sell better with a bow tie on it anyway. GMC I was never a fan of staying, but Buick dealers on their own would go out of business. I think GMC should be the commercial truck, work trucks, etc and cater to businesses, let Chevy cater to families. Otherwise GMC does luxury SUVs and Buick does cars only. But they don't both have to do one step up SUVs from Chevy.

[Z-06]

Maybe Rick W. should go now, guys? or should we wait until GM is gone?

After being his supporter for a while, I have gotta say that his, board of directors, other top executives' time has come to leave their chairs.

I would rather have them make an exit with their heads high with a gracious defeat (if it is still left) rather than politicians kicking them off.

Rick did whatever he could, and he did not expect this scenario to come, which to his credit no one saw it coming, but the fact GM is getting hammered the most (other than Chrysler) makes his and his cronies' strategic models/ decisions for such an event doubtful. Or may be they are playing a super GrandMaster's chess to make money from the government.

[01Malibu]

Did GM gain any profit or market share when they killed Oldsmobile? I don't understand the SHRINK THE COMPANY MINDSET. They should have expanded the company with so many models that they have a car, truck, suv, crossover etc. for everyone. When GM had 5 divisions, the prospered. Plain and simple.

GM has a problem of getting people into the showrooms and don't get as much profit per vehicle thanks to incentives, AUW labour/health care costs etc. They haven't changed their style on certain bread and butter models and if people don't see a different looking model in the showroom every 3 or 4 years, they go elsewhere. The old Cavalier and Cutlass Ciera stayed in the showrooms way too long.

[ShadowDog]

Did GM gain any profit or market share when they killed Oldsmobile? I don't understand the SHRINK THE COMPANY MINDSET. They should have expanded the company with so many models that they have a car, truck, suv, crossover etc. for everyone. When GM had 5 divisions, the prospered. Plain and simple.

That's what drove them into this problem in the first place! As anyone with a mindset for business knows, you cannot be everything for everyone. They saturated the market with low-budget product with the only hope for profit coming from volume sales that never materialized. At this point in time, with zero hope for volume sales, GM cannot afford to fund everything under their roof. Fixed-cost reductions won't even bring a break-even figure for the operating statement, so cutting further into operations must be done.

I'm not out to insult fans of Pontiac in my understanding why GM would choose this route to save themselves, but I don't see that Pontiac has made that much of a positive impact to warrant retaining. Anything else worth mentioning will be reserved for when we would see what GM plans on doing with the exclusive lineup.

[smk4565]

Did GM gain any profit or market share when they killed Oldsmobile? I don't understand the SHRINK THE COMPANY MINDSET. They should have expanded the company with so many models that they have a car, truck, suv, crossover etc. for everyone. When GM had 5 divisions, the prospered. Plain and simple.

They will shrink to zero brands if they don't do something, because they are deep in debt and haven't made money in years. Size or market share was how the old GM got it done, that won't work, PROFIT is all that matters now and in the future. They fell further into the tank when Oldsmobile died because they didn't drastically improve Buick and Pontiac. Products like the Enclave, 2010 LaCrosse, G8, Solstice should have been on the market in 2004-05. Instead GM dumped money into Hummer and pickup trucks, and W-body cars while Chrysler did the 300C, Japanese did crossovers like the Pilot, Highlander and RX350, Mazda had the Miata, Nissan the 350Z, etc. Now GM comes 4 years later with crossovers, rear drive sedans and sport coupes. It is 4 years too late. GM has been following the market, rather than trendsetting, so their overall lineup hasn't been that desirable to many consumers in a while, and thus the deep discounts to mode metal.

So the answer is fewer, better products. Spend $1 billion on the new Malibu for example and make it best family sedan in the world. Rather than $4-500 million on the Malibu, then some on the Aura, some on the G6, Grand Prix, LaCrosse, etc and end up with 4-5 mediocre cars.

Edited March 4, 2009 by smk4565

[CaddyXLR-V]

I'm not out to insult fans of Pontiac in my understanding why GM would choose this route to save themselves, but I don't see that Pontiac has made that much of a positive impact to warrant retaining. Anything else worth mentioning will be reserved for when we would see what GM plans on doing with the exclusive lineup.

Well the truth is, GM doesn't know how to save itself. Killing Pontiac is probably something they are doing to show the equally dimwitted politicians that they "have a plan". Their plan is to cut off their limbs to stop the bleeding.

[FUTURE_OF_GM]

Did GM gain any profit or market share when they killed Oldsmobile? I don't understand the SHRINK THE COMPANY MINDSET.

Me either...

It's just a way of making it that much harder to make a comeback.

RE: Wagoner... I like the guy, but I'm of the mindset (and have been for a while) that both he and most of the GM board should be ousted.

But the question remains; who in their right mind would take the job?

[Lamar]

I'm late... y'all post too much while I'm in transit.

Interesting the the Nav system is such a complaint. I guess the Australians actually know where they're going.

Or maybe not... the car gets nav everywhere else... just not here.

[Intrepidation]

You cannot build more product then there are buyers and make a profit. It's that simple

[CaddyXLR-V]

You cannot build more product then there are buyers and make a profit. It's that simple

So sending those buyers you could have got to other companies brands helps?

[Drew Dowdell]

You cannot build more product then there are buyers and make a profit. It's that simple

Build fewer G6es/Malibus/Aura.... and when you have enough, stop. Don't just keep the line running and then have to dump them at firesale prices to move them......

but that would require some flexibility from the UAW.....

A more flexible platform lineup would be better also. I've thought a lot about going back to division specific platforms..

Chevy gets Delta and epsilon two wheel bases each.

Pontiac and Buick get the Zetas and Kappas, 3 different wheel bases. This also means no Camaro. Firebird and Transam instead.

Cadillac gets Sigma or whatever is replacing it. 3 wheelbases.

Saturn, Opel, Saab get their own two platforms to muck around on. this would be the new "Euro" Division.

Holden just picks whichever platforms it likes best and slaps a Holden badge on it.

in the U.S. only Chevy/GMC, Buick, and Cadillac get SUVs/CUVs

[01Malibu]

With GM's limited supply of sedans...how can they expect to survive? No Pontiac or maybe one halo vehicle? Only one or two Buick sedans..no coupes. And two Cadillac sedans. Makes no sense. And then you go after a bunch of little Chevys such as Spark, Volt, and Aveo.

The inability to make a Buick sedan to sell over 100 K is a real concern. Even in 2005, Lesabre sold over 150K! Now the Lucerne is going nowhere and will die in 10.

If you are young person looking for a new car, what would draw you to any showroom? The RIGHT car. A limited lineup will turn you away. GM has lost its swagger. And it is paying dearly for it.

GM needs to remember the sedan. The sedan will always be around. The Traverse, HHR or Equinox won't replace the sedan!