Posted on 01/08/2006 11:29:00 AM PST by george76
High expectations for U.S. automakers' new models...
GM, its stock price at its lowest level in a generation, the sales pitch that it makes in the coming days will be fraught with risk and high expectations.
After the shock of last year's record-high gas prices, the world's biggest automaker was forced to retool its product lineup of trucks and SUVs, belatedly recognizing that many consumers are leaning toward smaller vehicles.
With its stock in the tank and its sales showing no sign of turning around, GM will try to breathe life into the ailing SUV segment with its hotly-anticipated GMT900 lineup...
"This is the 'show me the money, show me the sales' point in the relationship between the investment community and GM,"...
Time's running out on GM and Ford, as their debt ratings fall ever deeper into junk status...
General Motors, Ford and Chrysler hold 55% of the U.S. market while Japan's Big Three combine to own 29%...
Ford, suffering many of the same afflictions, is also expected to take harsh steps to cut costs and retool production just as GM is doing.
Ford's best-selling Explorer - credited with popularizing the bulky SUV back in the 1990s - have seen sales plunge 29% in just the past year despite a recent makeover.
It's Toyota's game to lose right now, and the carmaker will look to build on its Prius-driven lead in the segment by unveiling the hybrid version of its top-selling Camry sedan.
As for the bigger picture, the Japanese juggernaut said last month it aims to lift its yearly global vehicle output to 9.06 million units, which would challenge GM's roost in terms of production volume.
(Excerpt) Read more at marketwatch.com ...
Rumor has it that Chevrolet will roll out a concept Camaro!
Knowing just how Over-glutted the North American SUV market is with nearly EVERY Manufacturer offering at least 1 SUV type....the 29% decrease can't be ALL FOrd's shortcomings.
There's nothing like looming financial disaster to focus Detroit's attention onto pleasing the customer.
This has been building for awhile. At one time, GM had the Midas touch. And the unions exploited this. And GM didn't have the cojones to tell the union goons to sit down and STFU.
So now the piper must be paid. I hope GM survives. But they need a serious restructuring of their business plan. And part of that will have to be massive cuts in union benefits.
And if GM files for bankruptcy, we, the taxpayers, will be paying those fat union retirement benefits. Makes ya sick.
Same thing happened to Bethlehem Steel.
Ford is ignoring their customers.
First, Ford moved the Explorer shifter to the floor. Thus allot of the storage for keys, stuff is gone.
The fleet buyers like police departments needed that space for radios, etc. So the fleet buyers are not buying, either.
Lost the "utility" in this suv.
Never mind the weird door handle, smaller sun visor ( the bean counters saved a buck and lost 29 percent of their sales ).
Shifter on the floor might be good for the mustang, but not on a suv.
Second, Ford uses weak a V8's so as to not hurt the Jaguar V8's.
Great...so let's go buy an Audi.
Third, their factory reps at Car Shows are rude and could care less.
It would be btter to dump the reps and get some more, nice booth bunnies.
Bankruptcy is working for United Airlines.
GM will have to do the same. The UAW bosses will hang onto their union benefits forever.
Bankruptcy will be the only way to save GM.
"I suspect, truth be known, that 70-80% of GM's problems can be traced to greedy union bosses."
The greedy union bosses decided for GM to not replace the Camaro/Firebird?
The greedy union bosses decided for GM to not have any hybrids, and to continue to place their eggs in the big SUV market?
The greedy union bosses decided for GM to name the new Buick a "Lucerne?" (like a wisconsin moo cow?)
Blaming unions is probably the idea of GM's top management, who have shown themselves to be the WORST in the industry.
Meanwhile, Korean Hyundai is ADDING plants in the US to build vehicles.
etc.
"Rumor has it that Chevrolet will roll out a concept Camaro!"
And meanwhile rival Ford has been selling thjeir hot Mustang.
GM's motto should be "we won't sell any vehicle until past its time."
By the time GM does a show-car Camaro, and eventually put one for sale, the market will have changed again.
GM moves too slow, is too much against any risk. Unless you mean the Aztek which their management approved of.
Based on recent years, GM's idea of a Camaro may well be a front-wheel-drive four banger. With a cutesy girlie body.
As an added bonus, they're built in the US by non-union labor. What's not to like?
When the budget allows, Clan Lurker is thinking very seriously about buying another Hyundai product. (Yes, we own one now.)
L
So what's preventing JAGUAR from "feeding more oats" into their ponies for more horsepower???
That Camaro is WAAAAAAY too CADILLAC-like, otherwise refered to as "Art & Science" style.
When I was looking at the LS sedan with the V8 at an auto show...the Ford rep said that Ford de-tuned the V8 LS so as to not hurt the image and sales of the Jaguar.
When asked about your point of adding oats to the Jaguar, he became defensive and said basically that it was a bean counter decision not to spend the extra money.
Nice, huh.
It's pathetic & defeatist thinking...kinda like some Senators and Representatives we've all heard much from.
Not too shabby!!! I hope they really go to production with it. My 1991 Camaro was totaled this spring:
http://www.freerepublic.com/focus/f-chat/1418474/posts
and I replaced it with a 2002. And I still have a '91 Firebird with 180,000 miles that I'm looking to replace; I drive it daily but it's starting to show its age.
I heard the Chinese are introducing a car for the American market as well.
Thank you for defining the other 20-30% of their problems.I did NOT say that GM management is not without fault. I did say that they need a new business model.
But the unions have been sucking on the GM willing tit for years, going all the way back to the 50s.
The unions have made outrageous demands. And GM management caved. And caved. And caved. And now the overhead of the union benefits is very large and unwieldy. To the point that GM may have to file for bankruptcy just to get out from under it. That's when we taxpayers will begin paying all those fat union retirement checks, etc.
GM management is definitely at fault. But the greedy union thugs are too.
FWIW, I have a friend who has worked in a GM plant for 27 years. His job? Maintenance. A job any good mechanic could handle. His pay? Between 60 and 100K per year depending on how much overtime he can get. He'll retire in two years. His retirement pension? He's expecting somewhere between 45 and 65K per year. Oh, and guaranteed health insurance for life.
This business model is top heavy and will not work in the long run. The piper MUST be paid.
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