enzl

Leadership is defined as an ability to lead people where they don't want to go. I agree that the latest crisis is a macro-event that is beyond GM's control--entirely. But that doesn't mean that current management should get a free pass. If RW is as smart as most believe he is, than all he needed to do was take a look at the books 8 years ago and conclude that a day of reckoning scenario was not just possible, but likely, given GM's structural issues.

Here's my take: If RW & Co. knew that this day was inevitable, why did it take 7 years into his 8 year reign of error to address the crushing weight of the healthcare, retiree and union payscale? Answer: This company was being managed quarter to quarter for the sake of share price, which, not coincidentally, is exactly the shortsighted behavior that has doomed GM to its current fate--and also maximized RW's pay as well. If RW knew that the product wasn't truly competitive, why did it take years to bring Lutz into the fold? And why were products developed under Lutz' regime still allowed to exit the factories with flawed execution? From Aura's panelled sunroofs that rattled at 5k miles to the Solstice's lack of trunk space for a lunch box---where was RW at that time? Answer: Playing golf with boardmembers 'bankruptcy-proofing' his golden parachute---while asking Union-members to take a historic pay/benefit haircut. If RW knew the day of reckoning was coming--and he should of, given that ResCap was a GM property at some point--why wasn't GM prepared? Where are the international small cars that every other global car manufacturer is capable of? (The war in Iraq is 6 years and counting--no thought that the Middle East might jerk around supplies?) Here's some more damning evidence of his 'vision': Why didn't GM go out and get a financing package similar to Ford's? Again, a GMAC owner should have known how historically loose and cheap borrowing was at the time. Why wasn't Ghosn and the Nissan/Renault people more seriously considered, if he REALLY knew the dire possibilities? If they were a few bad quarters away from disaster (and clearly, they were) why not grab a life preserver? You guys let RW off way to easily. At the end of the day, he's the captain of this ship---yet I've never heard anything but excuses, half-hearted cost cutting efforts and sales of once valuable (or simply poor) acquisitions sold at fire-sale prices. You can't even give this guy credit for the GMAC sale---GMAC couldn't borrow money at competitive rates at the time of the sale to CERBERUS--that's why it was sold---the dangerous, predatory mortgage lending went on unabated while Rick was in charge----ironically, it was Rick's mismanagement of that sub-prime lending that has led to the current financial crisis and lack of available funding for the ultimate sub-prime candidate-- GM itself!(--see where DiTech puts its Billboards for firm evidence of this.) Or, he's just a victim of circumstance. Please.

If you believe that I wished this for GM, you haven't been reading the lion's share of my almost 2000 posts here. Reread some of them before you write such untruths...I've offered dozens of suggestions---many of them on the record in 2005 when gas prices were low and GM was selling tons of profitable trucks. I'm going to lose alot more than you could imagine if this thing goes bad, thus I feel no shame in saying whatever I want--in fact, I feel I have an absolute right to, just as I had the right to object to RW's Ship of Fools running GM into the ground. I'm a stakeholder in this thing, not merely a fanboy, so I take your slights personally---I could be jobless very quickly---so I'm deadly serious in my viewpoint---I'm not some kid trying to tease GM'ers on this site (although you guys do make it so easy.) Remember: If only the Queen had testicles, she'd be king. I learned from an old football coach that luck is simply preparation meeting opportunity and I'd say GM was simply not prepared for this latest turn. You can hate on me all you want, but as far as prognostication goes--it certainly appears I might have had a few relevant points along the way, no?

I'm always amazed at how GM's biggest proponents on this site have NO clue as to the severity of the situation in Detroit. You bitch about the MSmedia, then these articles come out en masse and NOW you're paying attention? For those of us that have been ridiculed, threatened and cursed for our views that weren't in complete lockstep with the powers that be here, this is an empty victory at best. I am truly saddened by what is happening---and, as I've said before, my whole future is somewhat dictated by the myopic management at GM. This story was written YEARS ago....and while some of us felt that extreme measures were needed, no-one wanted to hear it. We hate on sites like TTAC---but, it turns out they're nearly 100% correct. I hate to say it, but GM's only hope is government intervention now. Let's hope that its not British Leyland 2. Remember, not all of those who's views you disagreed with were out to 'get' GM. My personal aim was just the opposite.

As Riverranch's story illustrates, GM is screwed when somebody looking for a Buick believes that 30% off MSRP is a reasonable transaction price. ...and then gets it for about that amount. Congrats on the purchase, regardless.

100% agree....GM simply needs more product success like the CTS & a marketing department that can sell it. Our MKS' have been nailed to the floor. In many ways, I think of it as a smartly updated DTS, rather than a successor to either the Town Car or Continental. But I can see it as a step up from the ES.

Could $2.00/gallon gas save GM? An extra 100k trucks couldn't hurt, right?

That's why you'll see the first $25 Billion of the DOE moneys , as well as further monies, have some strings that guarantee jobs for the Chrysler workers---that merger bloodbath was never going to fly.

Blue ZR1 in one of our showrooms. Simply awesome. The best of what GM can do when they really try.

With the deals being offered, the risk is almost priced in already. There's no reason to think the warranty would disappear---I'm more concerned about my local dealerships than the warranty itself.

Best news I've heard in a while from GM. Time to buckle down and get things right, boys and girls...

"Even if GM implements the planned operating actions that are substantially within its control, GM's estimated liquidity during the remainder of 2008 will approach the minimum amount necessary to operate its business."

It's a false choice to assume that less 'gas tax' means less taxes in general. And, every gas tax opponent here seems not to realize that there are many mechanisms available to make such a tax 'fair'---from tax deductions to a waiver of tolls (another 'tax' unfairly burdening low-income individuals and businesses). If the government is simply borrowing more to pay for things now, when do you think that bill comes due? Or would you rather pass that on to the grandkids? It's fairly self-evident that even if you don't believe in global warming, there is another, compelling reason to influence consumer behavior with a gas tax: Our Oil comes from people who hate us---eliminating our utter dependence on foreign oil from a$%#holes like Venezuela, Iran, et al will help us secure ourselves well into the future. I'd love to drive as much as possible, but there are other factors that must be considered--economists call those 'externalities'---which we collectively pick up the costs on anyway---whether its the environmental cleanup for an oil spill off the coast or expensive asthma meds for your grandpa or kids. It's incredible how selfish and self-serving the 'get big gov't off our backs' people are---there's simply no choice at this moment---as evidenced here, people don't make the rational, intelligent choices when left to their own devices.

Do you really believe that RW isn't partially responsible for the looming disaster? He's a GM lifer...how can he not share responsibility? All the blame would be unfair---but some? Where's the vision? The diversification? The thought that with the US fighting in a region producing most of our oil supply for 6+ years that there might be a disruption or an increase in pricing? History will regard him like the Captain of the Titanic or in the same breath as Kenneth Lay (Enron) or Kowalsky at Tyco, just more of a schnook than a crook. Sorry--he's a loser--Ill equipped for this crisis---as is most of GM's management, unfortunately.

I have been a harsh critic of RW...and I'll only add this to my previous rants: He would have been the perfect GM CEO---30 years ago. This is what he's been groomed to do. Unfortunately, GM is no longer in need of such a man. The idea that there's not another leader out there that can rethink GM is simply wrong.

You cannot cut or shrink your way to prosperity. I hope these reports are wrong. GM needs new blood, revenue streams.

Has to be Auto, unfortunately...I'm going to pick up a beater at some point so she can learn--but with 2 kids in the car--I think it can wait a bit. I'm pushing the 4cylAWD Escape--I haven't sat online and built one yet....we have multiple F/L/M franchises, so I'm sure I can get the best deal on one of these---The Forrester is her idea (although it could morph into a Impreza OB Sport--just got off the phone her--she saw one today). To be honest, I've been pushing for a used 06 530Xi Wagon (we pick them up regularly at auction for $24-28k and I've can get BMW to certify it for a grand or so)--my wife thinks only jerks buy BMW's, so the small CUV appears to be where she wants to be--I guess I can't complain, she could insist on a new BMW, right? We'll see...

I'm all in with the Escape---its difficult finding a Hybrid 09, never-mind negotiating a deal on one--I'm partial to a 4cyl AWD w/o the Hybrid, but she seems hell bent on it and its a lease, so I'm not worried about the long-term issues. My wife is the Subie fan--I've heard the new Forrester isn't as good a drive as the old one--I'm going take her to drive everything, no doubt. It's her car, so I'm buying 36 months of silence as much as I'm buying her a car, so I'm going to let her choose--with some gentle direction from me, of course.

I didn't intend my mini-rant at you. I've been trying to steer my wife to a domestic product---we're planning on leasing--and it's been a frustrating experience--the fact that Saturn doesn't make one of its 2 VUE hybrids as AWD just confounds me. We have 1 domestic choice in Ford's Escape/mariner--and those are impossible to find and sell at a premium partially because of the choice (FWD/AWD) available.

First--It's simply common sense that an 'SUV' looking machine offer AWD---I won't debate the merits of AWD, just that it has become an 'expected' part of the CUV experience---the Escape, Highlander, RX400h all have AWD available...why didn't GM plan to have an AWD, too? Second--the reason the VUE has no AWD 4cyl is because its a Pig---500lbs more than it should be---your circular reasoning brings us right back to the fact that GM was either:a)too cheap,B) too stupid or C)too arrogant--to realize that the WORLD product (Captiva, Antara, Daewoo Whatever, et al) needed to be BETTER than the competition--that's why an AWD VUE isn't available--there's a RAV4, CRV, Rogue and a slew of others that simply HAVE a 4cyl, AWD option Your question should be why isn't the VUE designed correctly to have an efficient 4 cyl version--not making more lame excuses as to why GM didn't manage to do it--they've got plenty of management in Detroit doing just that now.

I'm merely stating that a customer that would consider it, now won't. GM had an opportunity with a Subie fan and lost it. Got a feeling there are lots of them out there. What is the point of a CUV if no AWD is available?

If you're telling me a VUE needed 2 hydrid versions while other product with the same engine AND higher price points could have been used....then I cannot accept your explanation. 2 CUV's that don't have a AWD option---that makes the decision even more indefensible, IMO (Full disclosure: my wife wants to lease a Hybrid w/AWD---she likes the VUE---she won't buy w/o AWD, period---the VUE is such a pig, there's no 4 cyl AWD, either). I'm not crabby, just real. I've been 100% spot on---unfortunately. If GM seeks to lead, a 6 cylinder hybrid VUE w/o AWD is simply dumb. A CTS hybrid? yes. A Lambda - available yesterday? yes. How about a Saab? Hell yes. Another VUE with no AWD, no USP vs. Escape & a limited audience at Saturn dealerships? DUMB. And an excellent example of why GM is in the toilet--it's hybrid strategy is nowhere-- You can put a candle on a pile of sh!t, but please don't try to tell me its a birthday cake. I thought that the fear of GM's ultimate demise now being a real, actual reality (not just something I was repeatedly accused of 'making up'), you guys might think about some critical, creative, constructive criticism. I guess I'm a little too optimistic!

Actually, both companies are effectively giant liabilities with institutional shareholders and market-makers keeping their share price far above the companies 'technical' valuation. Plainly, you couldn't cover 10% of their outstanding liabilities if they were to be parted out in pieces. The same people who gave them the money to dig the hole they're in are the same people that are desperate to keep them solvent. Donald Trump once famously said if you owe the banks millions and cannot repay it, they own you---if you owe them billions, that's when you own them---such is GM & Ford's lot today.

While you're oversimplifying the case, the fact is that the US exports its goods & services throughout the world. We just happen to do a poor job with the export of automotive products. This can & should be laid at the feet of the Dom 3's management---when you fail to plan, you're planning to fail, et al. We're a consumptive culture that has put a premium on materialism---that breeds the result that you've identified...

Technically, it's ironic that the American public, that has largely abandoned GM & Chrysler as consumers are NOW going to be shareholders in both companies! Sadly, this has all been set in motion years ago. How good is that Renault/Nissan deal looking now to RW and the Bored of Directors? Question: Has any employed CEO presided over a larger total loss of shareholder equity than Red Ink Rick?