GM invites Kerkorian rep Jerry York to join board

[Ghost Dog]

http://www.autonews.com/news.cms?newsId=13992

[Petra]

Maybe it's just because I've been reading a lot of Mystery novels for English class, but something tells me that there is a, deep, intricate plot afoot here.

[Guest Josh]

Wagoner better put up results and pretty quickly.

[motownr]

Kiss Saab goodbye. Hummer too. Time running short for Saturn and BPG.... Kirk's play is simple: dump anything that doesn't gush cash like Caddy and Chevy, and ride the wave of GM's impressive growth overseas. Wall Street is going to love this.

[91z4me]

Wagoner better put up results and pretty quickly.

[post="54771"]<{POST_SNAPBACK}>[/post]

Say goodbye to everything worth anything, SAAB/Hummer/the rest of Hughes/the rest of GMAC, and then watch how quickly Kerkorian bails. It will make your head spin.

Great idea have the fishes invite the sharks over for dinner. :angry:

[steinravnik]

I remain optimistic on this. Fresh blood in GM can't hurt at this point. We already know that if GM just goes with the status quo, as they have for 30 years, they will be bankrupt. This may piss off GM traditionalists, but traditions are exactly why GM is where it is right now.

[goblue1999]

Kiss Saab goodbye.

Hummer too.

Time running short for Saturn and BPG....

Kirk's play is simple:  dump anything that doesn't gush cash like Caddy and Chevy, and ride the wave of GM's impressive growth overseas.

Wall Street is going to love this.

[post="54778"]<{POST_SNAPBACK}>[/post]

saturn and Hummer both have futures in GM, the only new brands in 100 years. Pontiac, GMC and Buick are the ones to jettison.

[goblue1999]

I remain optimistic on this.  Fresh blood in GM can't hurt at this point. 

We already know that if GM just goes with the status quo, as they have for 30 years, they will be bankrupt.

This may piss off GM traditionalists, but traditions are exactly why GM is where it is right now.

[post="54829"]<{POST_SNAPBACK}>[/post]

You are so painfully right!

[Guest Josh]

I remain optimistic on this.  Fresh blood in GM can't hurt at this point. 

We already know that if GM just goes with the status quo, as they have for 30 years, they will be bankrupt.

This may piss off GM traditionalists, but traditions are exactly why GM is where it is right now.

[post="54829"]<{POST_SNAPBACK}>[/post]

Could not agree more. It's not "status quo" anymore at GM as it shouldnt be with the current situation.

[Cadillacfan]

saturn and Hummer both have futures in GM, the only new brands in 100 years.  Pontiac, GMC and Buick are the ones to jettison.

[post="54834"]<{POST_SNAPBACK}>[/post]

Total agreement there. Anyone who hasn't bought a solstice yet, order one now...or whenever they are available (next year probably) because it looks like it will be the last new model to come out of Pontiac. Same with Buick. Here's hoping the Enclave goes to Saab.

Speaking of Saab, now that the company is going to turn a profit soon, I think it's in the clear for now. So if Kerkorian starts slicing away, it won't be such a massacre.

I also agree with steinravnik's statement about traditionalists. The only people that respect the brand name of Pontiac are enthusiasts like us and people in their 50's and 60's. Combined, that's not a lot of people you're going to make angry. Better if GM makes amazing cars under it's stronger brands then to keep throwing money at a brand that's had to reinvent itself more times then I can count with little to no postive results. Edited December 8, 2005 by Cadillacfan85

[Guest buickman]

One thing's for sure, it can't get any worse. Maybe with York and Henderson GM will exert some leadership, accountability and responsibility. I figure Wagoner is a goner, and none too soon.

[91z4me]

saturn and Hummer both have futures in GM, the only new brands in 100 years.  Pontiac, GMC and Buick are the ones to jettison.

[post="54834"]<{POST_SNAPBACK}>[/post]

GMC 2nd in sales. All models are rebadges of Chevy trucks sold at a higher price point, AKA a major profit center for GM. Yeah lets kill that brand. :rolleyes:

Pontiac #3 in sales. All cars, except the Vibe a Toyota rebadge, are rebadges of Chevy's with higher price points and a sporty tune. Gotta have something different for younger buyers who want more style. Oh yeah and has quite a bit of new product on the way.

Buick #4 in sales. Much higher price point than the Chevies they are based on, except Lucerne which gives the DTS chassis enough volume to justify keeping the $45,000 Buick rebadge around while making a profit in the process. Highest reliability ratings of ANY GM company. Highest customer return rate of ANY Auto company. One of the higest CSI dealer networks in the country, lets piss them off and see how much money they want.

Sorry but NONE of these brands are going anywhere. Hummer could be sold to someone like BMW or Toyota who wants a way to lure Yuppies into a high price point vehicle with little investement into R&D. Basically Hummer would command a HUGE market price if sold off correctly and lets face it Hummer won't be the in brand in 10 years. Lets pitch it while the pitchings good.

SAAB could realistically stay in Europe and be justified as a premium EU brand where it sells most of its cars, only 30k or so are sold annually in the US where as 125,000+ are sold in Europe. Also the reputation is higher in Europe than the states. Probably won't be sold since all manufacturing and engineering operations were closed down over a year ago.

I do forsee selling off of non-automotive parts of GM and that could be a good thing. GM still partially owns GM-Hughes, something like 30%. I also believe GM Electromotive is still partly for sale as I am sure other parts of the company are, GMAC being the big apple that would bring BIG revenue if totally sold (but very bad in the long haul for GM).

[91z4me]

One thing's for sure, it can't get any worse. Maybe with York and Henderson GM will exert some leadership, accountability and responsibility. I figure Wagoner is a goner, and none too soon.

[post="54859"]<{POST_SNAPBACK}>[/post]

Yes it can. Sell off profitable parts and stock really drops after they sell their stake and GM will need an even longer time to recover.

[Chicagoland]

One thing for sure, you are not going to see the "all RWD lineup" some predcited. Also, yeah car history enthusiasts get mad about brand cuts, but where are they when sales are needed? Driving 1992 Centurys and 98s, and wishing the old cars were still in production.

[motownr]

Respectfully, I think some are missing the point here: guys like Kerkorian have a very unique mind set. Kerkorian is not a long-term growth company investor. He's an 88 year-old value guy. He could give a hoot about what SAAB or Hummer might be worth if properly managed for the next 10 years. He'll take the cash today. He could care less that Saturn and BPG have X, Y, Z desirable characteristics. If they have negative cashflow, they're history. The Wall Street play for GM is obvious: you cut loose anything that doesn't print money a la Chevy and Caddy, combine that with massive reductions in structural costs, and sell the trade. I think things are going to heat up pretty fast. York does not mess around, and GM's board is not known for strong personalities that will stand up to someone like him. The bull is loose.

[tama z71]

Well, who's on the block? Cadillac and Chevrolet are in the green, for obvious reasons. GMC is number 2 in sales, and a CASH COW as far as R&D and costs go. Saturn would be stupid to kill, as it looks to become the GMC of the car set (deriving products from rebadges of others within GM. Chevy = GMC, Opel = Saturn.) now... HUMMER, of all the brands, is worth more sold off than kept in house. Sell it, and to anyone but Toyota. Buick's future just isnt looking promising. Pontiac may very well be replaced by Saturn. Saab? I doubt they could sell it for much. Might go as a strictle EU brand. This is huge. Any brand cuts would be devastating. Let's see what the rest of the board will say to Kirk's goons.

[tama z71]

can someone post the article?

[I hope GMRULES again]

GMC stays for sure, its an easy money maker sharing all its costs with Chevy, Hummer stays cause it most make money considering the price of their products and the H3 is is hitching a ride on the high volume Colorado platform. Once all the Buick and pontiac dealers have merged if the two divisons combined could sell 700k per year they could probably survive. I say get rid of Saab for sure.

[-Camaro-]

Can't someone stop kerkorian? Edited December 9, 2005 by -Camaro-

[wildcat]

Please don't post something like that and ruin the integrity of this board.

[-Camaro-]

Please don't post something like that and ruin the integrity of this board.

[post="55486"]<{POST_SNAPBACK}>[/post]

Ok, I guess that is the wrong way to get rid of him... ;) Isn't there a way to stop him? I don't see why GM would do this... :blink:

[motownr]

Camaro: Why in the world would you or anyone else be against the participation of one of the greatest investors of all time???? Kerkorian is a phenom--a financial Michael Jordan. He has a very good gut instinct for value, and finds ways to unlock it. I am a very big fan of current GM management, but it's hard to argue that they have been reticent to take the necessary drastic steps to improve their competitiveness. Guys like Kerkorian make free enterprise work. We should be grateful he decided to put his money into GM rather than Ford. My $.02 Edited December 9, 2005 by motownr

[-Camaro-]

Camaro:

Why in the world would you or anyone else be against the participation of one of the greatest investors of all time????

Kerkorian is a phenom--a financial Michael Jordan.

He has a very good gut instinct for value, and finds ways to unlock it.

I am a very big fan of current GM management, but it's hard to argue that they have been reticent to take the necessary drastic steps to improve their competitiveness. 

Guys like Kerkorian make free enterprise work.  We should be grateful he decided to put his money into GM rather than Ford.

My $.02

[post="55542"]<{POST_SNAPBACK}>[/post]

If he's the greatest investor of all time, why is everyone saying he'll ruin GM? Hmmmmm?!

[91z4me]

If he's the greatest investor of all time, why is everyone saying he'll ruin GM? Hmmmmm?!

[post="55613"]<{POST_SNAPBACK}>[/post]

He is a great investor, but only for himself. Anyone remember the hostile takeover attempt at Chrysler in the early 90s. He will influence people into selling stuff and once the money comes in he dumps his stock. Good for him, bad for GM.

[VenSeattle]

Kiss Saab goodbye.

Hummer too.

Time running short for Saturn and BPG....

Kirk's play is simple:  dump anything that doesn't gush cash like Caddy and Chevy, and ride the wave of GM's impressive growth overseas.

Wall Street is going to love this.

[post="54778"]<{POST_SNAPBACK}>[/post]

Well, GM can't possibly get rid of Saturn or BPG without doing it through bankruptcy. Dealer law suits (because of the cutting of brands), additional plant closings (because of self-induced reduction in market share), UAW strikes (because of the cutting of brands & more plants) combined would cripple GM into bankrupcy if they didn't proceed with it first.

With Kirkorian having a seat on the board, GM will not be pursuing this course. It will not be an option. Kirkorian isn't looking to throw away his 10% stake.

Selling off SAAB & GMAC are definite possibilities.

Kirkorian is old, but he's VERY familiar with how the auto industry works. It's hard for me to imagine that a man who I despise may actually end up being the reason my preferred brand might have a chance.

[Newbiewar]

Well, GM can't possibly get rid of Saturn or BPG without doing it through bankruptcy. Dealer law suits (because of the cutting of brands), additional plant closings (because of self-induced reduction in market share), UAW strikes (because of the cutting of brands & more plants) combined would cripple GM into bankrupcy if they didn't proceed with it first.

With Kirkorian having a seat on the board, GM will not be pursuing this course. It will not be an option. Kirkorian isn't looking to throw away his 10% stake.

Selling off SAAB & GMAC are definite possibilities.

Kirkorian is old, but he's VERY familiar with how the auto industry works. It's hard for me to imagine that a man who I despise may actually end up being the reason my preferred brand might have a chance.

[post="55618"]<{POST_SNAPBACK}>[/post]

they can sell brands...they dont have to close them down...


but as for kirk... he usually makes his money buy ripping massive companys appart and selling it into peices... then the company itself cannot continue... he ruins the company... and in short he makes a killing...

[buickguy]

You don't sell more cars by producing fewer of them. I can see selling off Saab and Hummer. Saab's sales are abysmal in the U-S, and it's about time they turned a profit. Pontiac, and Buick outsell half the nameplates out there...even BMW and Cadillac. You want to kill them? Buick wins the lion's share of the reliability awards and surveys. Buick doesn't appeal to young people because GM decided to do away with coupes and convertibles for the brand.