smk4565
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Everything posted by smk4565
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To cut cost and save money.
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The Lucerne starts $8,000 less than an ES, and they sell them to rental fleets and it still is behind the ES this year. As pointed out: Lexus ES Jan-Sept'08: 50,642 Buick Lucerne Jan-Sept'08: 43,839 If the LaCrosse is $28-35,000 it will just cannabolize Lucerne sales, so maybe they'll sell 60-70,000 a year like GM thinks, but it won't be from conquest sales of imports. The Enclave does well on that list because it is cheaper than a lot of those vehicles. The Enclave starts at $33,955 (plus $2500 cash back) which is closer to Tahoe, Expedition, Armada, Pilot, Acadia, etc. than it is to an X5 which bases over $47,000.
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CTS and ES are the same size and price, although the drive train and ride firmness difference attracts different types of buyers. But my point was the CTS at $34,000 sells about 6,000 units a month. If the LaCrosse is $34,000 (like some here think it will be) how will they sell the same volume the CTS does? This car is no threat to Lexus, just as the old and ugly Lexus RX still crushes the Enclave in sales. Buick is going after the Avalon, Sable and Azera (if it is still around) with this car. And there is nothing wrong with that, just don't tell me a $27,000 Buick is as good as a $37,000 Lexus.
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The Lexus ES usually outsells the CTS, I doubt Lexus is fearing anything coming from Buick. Plus Toyota has a mountain of money, whatever GM spent on the new LaCrosse, they can just spend twice as much and come out with a better car. Although I still believe the LaCrosse will be $26-33,000 and not compete with the ES anyway.
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Driving Away Excitement...G8 dead in 5 years
smk4565 replied to mustang84's topic in Heritage Marques
There is a very small full size car segment, and the Asians hardly bother with it. An Avalon or Maxima are smaller than the current LaCrosse. The only thing Lucerne/DTS size is an S-class. The new size for a large car is about 196-199 inches long, the G8, STS, 300C, Taurus, LS460, Avalon, 7-series fit into that range. Pontiac hasn't had direction in years, the brand is either going to become the rental car outlet of GM or die off. -
If GM is this concerned about cost cutting and cutting corners with what auto show it is debuted at, you know they cut corners on the car itself.
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It doesn't save money, they probably cut staff or cut back on the car in the development process trying to save money, and now it isn't ready. Maybe they have very little for the Detroit auto show and want to release the CTS coupe and LaCrosse there, figuring they'll go on sale late winter or early spring. Although if I were GM, I would be working to get great product out fast, because on their current path, bankruptcy is in their future.
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Maybe the current car will soldier on for the 2010 model year, and keep the 3800/4-speed combo for another year. A Buick just isn't a Buick unless it is old and dated.
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Cerebus could probably get the most money if they sold it off in pieces so ti wouldn't surprise me. Maybe GM gets Chrysler and Nissan-Renault get Dodge pickups and Jeep.
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I didn't say it had to be 3300 pounds, especially not in V8 form, that isn't happening. I just questioned if even the base 4-cylinder turbo would weigh around 3300 pounds, because GM cars are often heavier than class average, and 3300 pounds would put it on the light side of the class. Of course all those cars have flaws, especially the non-sporty Lexus and the cheap interior Mercedes, although they still have good reputations. The new Audis seem pretty good. I don't like iDrive and am not a fan of BMW styling, but their brakes, steering and suspension are excellent and can make you forget how dumb iDrive is rather quickly.
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M3 has a V8 C63 has a V8 RS4 has a V8 IS-F has a V8 Why does this car not need a V8? The V-series needs at least a 7-speed transmission, the IS-F has 8-speed. And they already sell that, Cadillac is bringing out a similar car in 2012, that is 4-5 years behind the curve.
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1. Can GM make a car platform that is only 3300 pounds? Most of their stuff is heavier than class average 2. They have to compete against the A4 also, they better make the interior better than Audi and better than BMW 3. The 3-series has 6 cylinders (perhaps the best 6-cylinder on the planet) and a V8, Cadillac better have the same 4. Agreed, but they need a heavy duty version for the V-series 5. Agreed, and wouldn't mind seeing it start at $34,000 And there will be an all new 3-series when this car comes out, so Cadillac better not just build something as good as the current A4 or 3-series, they better do better. The 3-series has been king for 25 years, for Cadillac to beat it on the first try is a near impossible task, unfortunately, it is what they have to do if they want to stay in business.
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Driving Away Excitement...G8 dead in 5 years
smk4565 replied to mustang84's topic in Heritage Marques
This brand is dead come 2013. Solstice and G8 have no replacement, G6 is living on til 2012 or so with no update, G5, G3, Vibe are lame rebadges. There is no point it keeping this brand anymore, give up and spend the money on Chevy. -
GM to absorb Chrysler - as Chrysler absorbed AMC?
smk4565 replied to Oracle of Delphi's topic in General Motors
Plymouth, AMC, Studebaker, Oldsmobile, Eagle Packard, and Hudson all had history too, and they are all gone. History and pleasing dealers has nothing to do with it. It hinges on how many brands can a shrinking American car market support, and right now the Detroit 3 have too many models, and too much capacity, so they have to give huge incentives to move metal. They've all done the same basic tactics for the last 15 years and it isn't working, GM needs a radical change, this could be it. -
GM to absorb Chrysler - as Chrysler absorbed AMC?
smk4565 replied to Oracle of Delphi's topic in General Motors
I say do it. With Chrysler's $11 billion in cash they can pay off all the dealers to close. Close down GMC brand, and put Jeep (Wrangler, Liberty, Grand Cherokee, Ram) in its place. Chevy gets a minivan, the 300C could go to Buick or Chevy and everything else dies. GM would get a few products and factories that have value, and clear out one competitor in the market. -
Getting Hummer one more step to being gone is a good thing. I don't think Jim Taylor had done such a hot job with Cadillac over the past few years, so I am glad they are getting someone else. The renaissance that LaNeve started stalled badly when Taylor came in.
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I just read that Cadillac may put the 4.5 liter diesel V8 in the CTS, which is very intriguing depending on what kind of mileage the engine gets.
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I think the pricing is good, pretty much what I expected. It is a lot of styling, performance and value. The base model has floor mats as an option, so I am guessing it is pretty stripped down. I would imagine most cars have an equipment group or LT package and there won't be many $22,995 models built anyway, most will be $25-27,000.
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Where is Kirk Kerkorian? This is his chance to buy GM, Ford or Chrysler. I don't know why he was buying 10% stakes in those companies in the past, and here is the chance to buy 100% and he is nowhere to be found. Which is probably better for the Detroit 3, but I am just surprised his name hasn't come up.
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But it is a GM-Chrysler merger, not GM-Cerebus. And even GMAC is barely making money now with the mortgage and banking problems. Cerebus owns 51% of GMAC, I doubt GM wants it back.
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Chrysler has nothing to bring to the table, none of their stuff is competitive anymore, their interiors are bad, engines are dated and unrefined, and the LX platform is old too. Chrysler and GM are both too deep in debt, with declining revenue and not turning a profit. If either were that appealing to buy, Toyota would have done it already. I don't think this merger will happen, but I do think Chrysler will be bankrupt and gone by 2015.
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I thought about this a year or so ago when Chrysler was for sale. The only way it works is if the new company sheds a bunch of dead brands like Dodge, Saab, and Hummer and repositions the leftovers, but Chrysler has become over 40% fleet sales, so they have lost the status to be positioned between Chevy and Cadillac. Chrysler has nothing of value to offer GM, it would just be more brands and dealers at this point, and a dated, uncompetitive product lineup. Bad idea to merge. It would make more sense to merge with Ford, make Saturn small import style cars again, GMC, Pontiac, Mercury, Hummer, Buick, Saab die, Ford and Chevy handle mainstream, Lincoln is a step up, and Cadillac is a step up from that. Although they could probably keep Buick as well and keep them as soft luxury and Lincoln a little more tech and sportiness like Acura and Infiniti.
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Agree that Olds will never come back, but Rolls-Royce isn't going anywhere. They have been doing well this year and have a new model coming. There will always be people willing to pay $330,000 for a car, especially in Dubai. A Duesenberg comeback would be incredible, but no one would do the name justice. Duesenberg was the greatest car ever built in my opinion.
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Nova doesn't work in Spanish speaking countries, GM went down that road before. They should just call it Cobalt, so they aren't changing names with every new model launch. Civic and Corolla have been around 35 years or so, people know what they are. Chevy's small car in 2030 should still be Cobalt.
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Hiatus won't work for a brand, the dealers whine now about not having enough products (when they should want quality over quantity) so they won't go for it. The brand is pretty much dead anyway. I think a 3 tier setup of Chevy-Oldsmobile-Cadillac (maybe with saturn as the Holden/Opel import outlet) could have worked but too late for that.