smk4565

They should cut brands before they cut R&D spending. They were spending 6 billion over 8 brands, spending 4.5 billion over 8 brands is just going to make even weaker brands. GM already has dated and uncompetitive products throughout the lineup, cutting funding is just going to lead to an even more uncompetitive line. The only way GM will ever recover is to build a better car than Honda, Toyota, BMW, Mercedes, sell in higher volume and charge more for it than they do. The plan of dated models, product overlap and selling the rebate, not the product isn't working and it is why GM has lost $60 billion in the past 5 years.

This is a bad idea, they need better product. Leaving dated or uncompetitive products on the market for another year or two aren't going to get it done. Toyota already spends about a billion dollars a year on development than GM does, Toyota will now have a $2.5+ plus advantage in 2009, and half the models to spend it on. This is also why Cadillac will never be BMW or Mercedes, GM is too broke to fund them. R&D is the absolute last thing that should be cut.

Maybe the Outlook, Traverse, Tahoe, Escalade, Enclave, Acadia, Suburban and Yukon will all be on Lambda.

The auto luxury tax is (or was recently) $42,000, I tend to think of luxury cars as being over that, and the $32-40k priced cars being entry level luxury. SUVs cost more than cars though, there are Chevy, Nissan and Ford SUVs that cost $45,000+, I don't really think of them as luxury vehicles. I can see the Enclave as entry luxury since it has several luxury features, but the interior materials are at best, marginally better than what the Acadia or Outlook has. The Enclave has faux wood all over the dash, and it doesn't match the color or grain of the wood on the steering wheel. That is a detail Lexus wouldn't miss. There is a big size difference between the Enclave, which is Tahoe length, and the RX that is Equinox size or even a little smaller. So I wonder if they are even cross shopped that much, RX buyers probably aren't looking for such a large vehicle.

I'd call the Enclave premium, and the Lexus RX entry level luxury. ML350 and X5 are luxury. The Enclave at $33,955 is about $5000 more than a Pilot or Flex. The Acura and Lexus are about $5,000 more than an Enclave. You can't argue that the Enclave competes with more expensive vehicles, but the Pilot and Flex don't compete with and Enclave, especially when a Pilot or Flex with options runs near $40,000, right in the heart of Enclave/Acadia pricing. The Pilot is closer in price to an Enclave, than the Enclave is to the MDX. I know GM and Buick fans try to create perception that the Enclave is squarely aimed at Lexus and Acura and that the LaCrosse is aimed at the ES, but if that is the case, price them like a Lexus, don't price them like a Toyota. There is a reason the Enclave is $6,000 less than an MDX, just as there is a reason a Pilot is $5,000 less than an Enclave. In each case, you get more stuff on the more expensive vehicle.

If it is such a hot seller with such a high transaction price, why offer $2500 cash back on it? Wasn't the Enclave around $34,700 for 2008, if so they lowered the price on the 09 model. The Enclave has a long options/package list, so it is probably hard to build them to suit buyer tastes. They should make more standard on the CXL, and leave big ticket stuff like navigation, panoramic roof and rear dvd system as options. Even still a loaded Enclave is about $45,000 which is the same as a Nissan Armada LE (base), and I don't consider the Nissan a luxury suv. GM's problem is Cadillac is primarily a $35-50,000 brand. So that forces Buick to be a $25-35,000 brand, Chevy, Pontiac, Saturn cars primarily are under $25,000 (except G8, Corvette). Cadillac needs to be a $40-100,000 brand, Buick $30k-40k, etc.

To cut cost and save money.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.