Oracle of Delphi

Yes Bob, thank you for letting Pontiac die under your watch ...

Popcorn

Oh I am very sure, besides what are you trying to say?

The automaker's Korean subsidiary, GM Daewoo, is losing money and facing a liquidity crisis. But it's too important to GM's future to jettison By Moon Ihlwan Even as Asia remains a bright spot for General Motors, its Korean subsidiary looks more like the hapless parent company than GM's fast-growing Chinese operations. GM Daewoo Auto & Technology lost $702 million in 2008, and this year its sales are off by nearly half, to 261,000 vehicles in the first six months. Now the Korean unit says it's on the cusp of a critical liquidity crunch. "Things look ugly at GM Daewoo," says Stephen Ahn, head of research at brokerage LIG Investment & Securities in Seoul. GM Daewoo's woes stem largely from its close ties to the rest of the global auto giant. The unit made about 900,000 cars and shipped kits for an additional 1 million vehicles for assembly at factories in other countries last year, accounting for about a quarter of all GM auto sales worldwide. But some 90% of those cars are branded as Chevrolets, Buicks, and other GM nameplates that have seen sales plummet. Given the losses, why doesn't Detroit just jettison the unit? GM Daewoo is too important to the future of bankrupt GM. The unit is a key developer of small cars for GM's global lineup, it's a vital source for engineering and parts for the China operation, and it makes a new Chevy compact that is set to face off with the Toyota Corolla and the Honda Civic. "GM Daewoo will play a more important role in the new GM's global business strategy," says Michael A. Grimaldi, president of the Korean operation. Korean carmakers want to stay ahead of China That has left GM Daewoo scrambling to strengthen its finances. In December it had total debts of $6.8 billion. Since February, when it exhausted $2 billion in credit lines, the carmaker has sought new loans from the Korea Development Bank. The government-run lender arranged GM's takeover of bankrupt Daewoo Motor in 2002 and still holds a 28% stake. In May the KDB let GM Daewoo defer $500 million in payments. Before handing over more cash, though, the bank wants GM to commit to maintaining a big presence in Korea—something GM can't easily do until Washington approves its restructuring plan. Seoul wants a guarantee because it's worried about Korea's position in the auto world. The country now offers a good compromise between high-cost, high-quality Japanese automakers and the low-cost Chinese auto industry, whose automakers have a reputation for building shoddy vehicles. But that advantage "could end in just a few years as China catches up," frets Lee Hang Koo, an analyst at the Korea Institute for Industrial Economics & Trade, a government-funded think tank. The KDB is also seeking collateral, such as more shares in GM Daewoo. The KDB says GM has balked at that, though the automaker declines to comment. Another debt-stricken Korean carmaker, Ssangyong Motor (controlled by China's Shanghai Automotive Industry), sought court receivership in February after the KDB refused to shore it up. Bailing out GM Daewoo without getting something in return could raise cries of unequal treatment. Still, given the importance of GM Daewoo to both GM and the Korean economy, some kind of deal is likely. GM needs the Koreans' design chops, and Seoul doesn't want to lose the tens of thousands of jobs provided by GM and its hundreds of suppliers. "Something will be worked out eventually," says Suh Sung Moon, an auto analyst at brokerage Korea Investment & Securities in Seoul. "Neither the U.S. nor Korea can afford to let it go." Link: http://www.businessweek.com/globalbiz/cont...mpaign_id=msnbc

I got stung by a Hornet 4 days ago, now it's all infected ...

Lindsay Chappell Automotive News July 10, 2009 - 7:22 pm ET Toyota Motor Corp. said Friday it might close its large California car and truck assembly operation, New United Motor Manufacturing Inc., now that General Motors has exited the 50-50 partnership. “We are carefully evaluating our options with respect to the NUMMI joint venture as a result of General Motors’ actions,” Toyota said in a statement released Friday. “Under the current business circumstances, Toyota regrettably must also consider taking necessary steps to dissolve the joint venture.” “We need to determine whether it can be economically feasible to contract with NUMMI without GM,” the statement reads. One big problem, according to NUMMI itself: The plant is simply not competitive. NUMMI itself released a separate statement late Friday acknowledging that it has become a problem for Toyota, due to high labor costs. “Neither NUMMI’s labor costs nor business conditions are competitive, so we are working hard to improve them and make NUMMI more attractive to Toyota,” the statement said. The Fremont, Calif., joint venture builds the Toyota Corolla, Pontiac Vibe and the Toyota Tacoma pickup. Launched in a closed GM factory in 1984 to share car production 50-50 between the global competitors, NUMMI is the only Toyota assembly plant in America whose workforce is represented by the UAW. NUMMI’s hourly workers earn national UAW rates of about $28 an hour at a time that Toyota and other automakers have been opening new auto plants in Mississippi, Texas, Georgia and Tennessee where assembly workers start $15-$20 an hour. Two years ago, Toyota said it intended to establish a new manufacturing center at NUMMI to make the plant more competitive. A spokesman for the plant said he was unaware of any such effort. GM revealed its plan to abandon the NUMMI partnership recently as part of its sell-off of uncompetitive assets to emerge from bankruptcy. GM grouped its NUMMI investment with the “old GM,” the unprofitable portions of the company that remain in bankruptcy court. The “New GM” -- the core profitable parts of the automaker -- emerged from 39 days of bankruptcy protection earlier Friday. The NUMMI joint venture has been cited for 25 yeas as an example of harmonious auto-making between U.S. and Japanese cultures, and between union workers and Toyota’s flexible production rules. “NUMMI has been a model of U.S.-Japan industry collaboration as long as 25 years, but GM's decision to abandon NUMMI and discontinue its production of the Pontiac Vibe have prompted a set of difficult and complex decisions for Toyota,” the Toyota statement said. Link: http://www.autonews.com/apps/pbcs.dll/arti...273359873272487

What a disappointment, I thought this was about a woman ...

I'm surrounded by RWD, at BMW, it's all around me ...

Sour grapes? Not at all, I just hate to see you get all worked up, just to have the rug pulled out from you once again, how many times is it now, I've lost count ... Remember I can also come back if I wish ...

Not with the US Government running GM, all Lutz will be allowed to do is rebadge the Volt, he's good at rebadging, I'll give him that ... :AH-HA_wink:

The only thing Lutz hopes to change are his pension numbers ...

GME's agenda is as sound as ever, as half of them are now in GM, who do you think replaced all those Americans that were let go? As for Lutz, just like his cars, he is the wrong man at the wrong time, it's as simple as that.

Who are these factions you speak of? What are their names? Are you sure he was on the side of the Pontiac Alpha? I wouldn't bet your bike on that if I were you. The GTO and G8 are exactly my point, the wrong cars at the wrong time, especially when gas was over 4 bucks a gallon at the time. Nothing like continually shooting yourself in the foot as Lutz does ... If you remember, even Lutz said the GTO was a failure ... http://www.houstoncars.org/bob-lutz-explai...s-a-failure.php

I predict within 2 or 3 years, GM will be in Chapter 7 liquidation ... As for Lutz, Pontiac died under his watch (remember Pontiac was his brand, his baby), let's see if he can't kill off Buick or Chevrolet next. Yes, that's exactly who I would put in charge of Customer Relationships, is the man that said Global Warming is a crock of $h!, more or less. EPIC FAILURE

Ask yourself this, will you be happy with a Saturn when GM no longer owns the brand, and it's no longer part of the GM family? I voted neutral on this issue, since you are the one who will have to live with your decision, not I ...

Any Micheal Jackson song, moves me to turn off whichever device I hear it on ...

Link: http://www.msnbc.msn.com/id/21134540/vp/31847611#31847611

I will have to agree with you, the Terrain is growing on me, which is surprising to me, because I didn't think it would ...

Utt Ohh, digital dash, is very close to HUD, and I love HUD, so dems be fightin words ...

I like the Corsica, that thing is a little tank, they just keep going and going ...

MiG 17 "Fresco" (You can see the Afterburner working)

Dassault-Dornier Alpha jet

I normally do ...

Dr. McCoy