Lutz: GM back in driver's seat by 2011

[wildcat]

The press barrage is mounting, and the Detroit News is reporting it, too: "Lutz: GM back in driver's seat by 2011." To read the article, which has additional or slightly different quotes than the New York Times, click here.

Edited April 13, 2006 by wildcat

[cmattson]

A good example of how unrealistic GM management has been came early last year when GM projected it would turn a solid profit, but instead lost $10.6 billion.

What rock did this guy crawl out from under? What's a publicly-traded company supposed to say? "We're gonna lost our f-ing shirts this year!"? As it was, GM wouldn't be nearly as bad off if it wasn't for two major, one-time events: the FIAT fiasco and Delphi going under.

[evok]

As it was, GM wouldn't be nearly as bad off if it wasn't for two major, one-time events: the FIAT fiasco and Delphi going under.

No the Fiat buy out was because of the pending DPH disaster and NA restructuring.

They picked their battles.

[cmattson]

Ok, I'll buy that. Just the same; those two events aren't going to repeat themselves next year. If GM can get a favorable agreement with the UAW in place next year, then they'll have put some serious bad-spots behind them.. and with the new product appearing (Saturn in particular), you could actually make the case for a GM-upswing starting in '08..

[evok]

Ok, I'll buy that.  Just the same; those two events aren't going to repeat themselves next year.  If GM can get a favorable agreement with the UAW in place next year, then they'll have put some serious bad-spots behind them.. and with the new product appearing (Saturn in particular), you could actually make the case for a GM-upswing starting in '08..

Agreed - I expect 06 and part of 07 to continue looking ugly but my date on Wagoners head is Jan. 08 if it is not turned around by then.

[Camino LS6]

Agreed - I expect 06 and part of 07 to continue looking ugly but my date on Wagoners head is Jan. 08 if it is not turned around by then.

Happily, I get to agree with Evok for a change. :AH-HA_wink:

[drew770]

Not only does GM need a new more favorable UAW contract but it also needs for gas prices to stablize and or drop.

GM is banking alot on the GMT 900 and they will only be sucessful if gas stays stable.

But we have to realize that with a new hurricane season a few months away so we GM has to get ready for the worst.

I would feel alot better about GM's situation if they were now releasing passenger cars that were as good as the GMT 900 are.

The Aura and the Hybrid Vue can't save a whole company.

[Petra]

I'd agree with Lutz, if only I was certain that GM could make it to 2011.

[ellives]

No single product or product line will save a company. Companies need to stay close to and understand the market they sell to and respond rapidly when the market changes. To the extent a company can respond rapidly, they mitigate the risk of missing market shifts. This is one of the reasons Toyota's announced plan targeting 12 month development cycles was so significant. It allows them to bring their new products and ideas to market faster than competitors and if one of heir competitors has an idea that's better, it will only take a year to correct the problem.

This is the where GM will need to go in the future - shorter and shorter develop cycles and staying VERY close to the market.

Not only does GM need a new more favorable UAW contract but it also needs for gas prices to stablize and or drop.

GM is banking alot on the GMT 900 and they will only be sucessful if gas stays stable. 

But we have to realize that with a new hurricane season a few months away so we GM has to get ready for the worst.

I would feel alot better about GM's situation if they were now releasing passenger cars that were as good as the GMT 900 are.

The Aura and the Hybrid Vue can't save a whole company.

[FUTURE_OF_GM]

It's pretty evident that GM's last great frontier on the cost side is the UAW AND it's pretty evident that the ANALysts are focusing on that as being their downfall. Once GM announces the UAW deals then things will probably either 1) start to look a lot brighter or 2) The media/analysts will focus in on something else to try and push them over the edge. I'm betting on number 2!