BlazinXtremeThe Cobalt is a very good car, bout time GM realized how crappy the J-Bodies were and made something worth while.
PovertyDont you mean opel made something worthwile.
max_dcOpel is German. Developed and manufactured in Germany. While they might belong to GM on paper, they have nothing in common with the American cars of GM.
wolfe2x7Actually, Opel does have something in common with the american cars of GM, as in, many of them are based on Opels -- for example, the Cobalt is heavily Opel-based.
BlazinXtremeI don't care you buy an Opel, the main GM sector sees all the money.
GMAC makes more money than the cars do. They should strongly consider spinning off its assets into another public company.
Joey, if you're long on GM, you might want to think about averaging down. ($18.89 and dropping...)
BTW == J-Body is what car? The Cavalier/Sunfire?
PovertyThe engine was in a astra long time before the cobalt.
Disturbed07The ecotec? what does ecotec mean in German?
It was in Sufire's/Cavalier's since 02, I believe
the new 2.4 will be a rip of the last 2.4, modified though which is actually of Oldsmobile descent
BlazinXtreme-
- The Hummer line is getting a refresh to make them more appealing
TheCrackerYou've spelt the word appalling wrong.![]()
BlazinXtremeOf course you haven't seen the new hummer's yet, they are starting to look much better.
the truth about carsGM Death Watch 46: The $2b Question
For those of you who've just joined us from Wall Street, welcome. Weve been waiting for you for a while-- long enough to wonder if GMs stock price got lost in hyperspace. I guess you guys needed some kind of sign to find your bearings. Something like Toyotas announcement that theyre gonna Avis The General in 06, ending GMs 70-year run as the worlds largest automaker. Or Rabid Rick Wagoners post horse departure barn door closing homily: Im not conceding anything to anybody. No matter. Now that youre here, let me tell you a story
I was scanning Wardsauto.com the other day when I came across a good news piece: Crucial GM Fullsize Truck Program Launches Early. Well, OK, it MIGHT be a good news piece, you know, if The Generals SUV cavalry racks-up the sales GM needs to die another day. Obviously, its a bit of a long shot, what with SUVs being a dead genre guzzling. But hey; it is what it was. Anyway, mid-way through Ms. Priddles puff piece, a thought occurred to me: is it really a good idea to rush the GMT900 vehicles (Tahoe, Yukon, Escalade, Suburban, Silverado, Sierra, etc.) to market? What if theyre not ready?
Its not inconceivable. The Pontiac Solstice was due to hit the forecourts in June, promised for November, still isnt widely available and already appears on bulletin boards with a laundry list of complaints. Lets face it: GM has a bit of a history manufacturing, dare I say it, crap. Oh wait; Wards says the new trucks will use 60% of the old trucks components. And according to Gary White, GMs Fullsize Truck Vehicle Line Executive, the GMT900s are entering the world with higher quality than the ones they replace. Now THERES a reassuring thought.
But lets get to the point. Check the articles last paragraph: No ones going to ride a 1-trick pony today, White says, noting GM could have spent an extra $2 billion for marginal additional improvement to the GMT900 lineup, but recognized the money is better spent elsewhere for a balanced product portfolio. Now ask yourself a question: what the Hell does THAT mean?
The first part of Whites quote seems straightforward enough. Whites saying his handiworks got to be safe, reliable, comfortable, attractive and frugalesque. (By implication, yesterday's "one-trick" SUV's were, um, affordable.) But whats that second bit about the extra $2b GM DIDNT spend on marginal additional improvement? Is White seriously suggesting that a couple of bil only buys you a bit of soft touch plastic here, a nicer steering wheel there? Im no bean counter, but I would have thought that 2000 million dollars can do a great deal to improve a vehicle.
I emailed Ms. Priddle to see if White had specified these missing marginalities. (GM stopped returning my calls sometime back in April.) No joy there. It then occurred to me that no matter what Whites mob left out of the GMT900s, his remarks typify GMs product mentality. The companys lineup is stuffed with ¾ vehicles: cars, trucks, SUVs and minivans that are just about as good as the competition, but not quite. For example, the Pontiac G6 seems a suitable alternative to a Nissan Altima. But if you look closely (as customers do), the G6 isnt up to snuff on almost every level: interior quality, engine refinement, reliability, etc. Even the class-killing Chevrolet Corvette features some of the nastiest plastic known to mankind. In general, The General signs-off its vehicles when they're still a few furlongs from the finish line.
An Audi engineer once told me that the final millimeter of a materials gap eats up a third of the items production budget. Even though an Audi buyer might not see or feel the resulting precision, the automaker makes the effort and pays the freight. Thats just the way they do things. Its already clear from the GMT900s 60% parts carry-over (much of which is due to the SOS timetable) and pre-production shots of the vehicles themselves that Whites got it exactly backwards. The huge amount of money GM spent on these vehicles delivered nothing BUT marginal improvements.
White's comments highlighted the trade-off that created the $2b compromise: marginal improvement vs. a balanced product portfolio. In other words, rather than get one vehicle-- I mean, a host of similar vehicles-- absolutely perfect, GM prefers to build [yet] another product. Its a shotgun approach in a rifle shot world. By manufacturing a complete range of not quite products across eight brands, GM condemns itself to perpetual mediocrity, and guarantees its also-ran status relative to the tightly focused folks at Toyota. The Generals generals fail to realize that people dont buy GMs balanced product portfolio. They buy a single GM product. Or, increasingly, not.
PovertyDoesnt look too good for GM
For those of you who've just joined us from Wall Street, welcome. Weve been waiting for you for a while-- long enough to wonder if GMs stock price got lost in hyperspace. I guess you guys needed some kind of sign to find your bearings. Something like Toyotas announcement that theyre gonna Avis The General in 06, ending GMs 70-year run as the worlds largest automaker. Or Rabid Rick Wagoners post horse departure barn door closing homily: Im not conceding anything to anybody. No matter. Now that youre here, let me tell you a story
I was scanning Wardsauto.com the other day when I came across a good news piece: Crucial GM Fullsize Truck Program Launches Early. Well, OK, it MIGHT be a good news piece, you know, if The Generals SUV cavalry racks-up the sales GM needs to die another day. Obviously, its a bit of a long shot, what with SUVs being a dead genre guzzling. But hey; it is what it was. Anyway, mid-way through Ms. Priddles puff piece, a thought occurred to me: is it really a good idea to rush the GMT900 vehicles (Tahoe, Yukon, Escalade, Suburban, Silverado, Sierra, etc.) to market? What if theyre not ready?
Its not inconceivable. The Pontiac Solstice was due to hit the forecourts in June, promised for November, still isnt widely available and already appears on bulletin boards with a laundry list of complaints. Lets face it: GM has a bit of a history manufacturing, dare I say it, crap. Oh wait; Wards says the new trucks will use 60% of the old trucks components. And according to Gary White, GMs Fullsize Truck Vehicle Line Executive, the GMT900s are entering the world with higher quality than the ones they replace. Now THERES a reassuring thought.
If it wasnt so funny, it would be sad. GM loses billions in ill-advised overseas "investments", produces an over-abundance of vehicles that are two model cycles behind the competition, cant build a single hybrid, completely cocks-up production of its Solsticial one hit wonder, cedes US market dominance to Toyota, plays Lets Pretend to Make a Deal with its union, announces its intention to sell-off majority interest in the only profitable part of the company, refuses to outline its turnaround plan, and the stock market yawns. The federal Securities and Exchange Commission (SEC) discovers GMs accountants have lost four hundred million dollars behind the couch and the stock tanks. What's that all about?
Before the SEC probe, like many other industry watchers, I was laboring under the impression that GMs stunning incompetence and epic lethargy reflected management myopia. In other words, The Generals G5 corporate culture had insulated Rabid Rick Wagoner and his well-paid minions from what you and I would call reality. They honestly believe their own hype. Now, Im not to sure. Although the $400m was misreported rather than lost, there are ominous rumblings that GMs mea culpa is the tip of the proverbial iceberg. Lest we forget, the SECs main focus was/is GMs multi-billion dollar pension and benefit schemes (vis-a-vis bankrupt auto parts supplier Delphi). Yesterday, the federal Pension Guaranty Corporation reported that Delphis pensions are underfunded by $10.8b.
If GMs been cooking the books, people will soon wonder if Rabid Rick's secretly hired Dorian Grey's portrait painter. After all, GM maintains an entire ledger of accountants to ensure that The Generals financial statements are on the up-and-up. The audit committee in charge of these pusillanimous pencil pushers reports directly to Rabid Rick. So, if the SEC finds that GMs increasingly obvious use of aggressive accounting tipped into pension and benefit-related GBH, the chances that the shell game was a devious plot concocted by a rogue element with The Generals ranks are minimal. The discovery will reflect Rabid Ricks willingness to encourage-- or at the very least tolerate-- corporate duplicity.
This would put us back in charted waters: in Enron territory, watching arrogant execs manipulating the public trust for personal greed and glory. And that sucks. Because it would mean that GM is deeply, fundamentally corrupt. That all the garbage weve been interpreting as corporate spin-- our cars are terrific, our new SUVs are high mileage heroes, were sorting the brands, badge engineering is dead, discounts are dead, crossovers are coming, hybrids are coming, fuel cells are coming, etc.-- is actually a deliberate cover-up of executive malfeasance. Its a slippery slope from PR to lies to cutting corners to criminal conduct. The SEC probe could reveal that Ricks riding a Flexible Flyer.
Sadly, it makes perfect sense. Perhaps Rabid Rick cant turn GM around because hes lost in Nixonian paranoia, struggling to maintain his administration's hold on executive privilege at all costs. Wagoner is, after all, a straight-from-biz-school boffin without any work experience outside of GM. Rabid Rick's moral and ethical compass was handed to him by GMs heavy hitters. His managerial mindset was forged by the plots and plans of The General's inept dictators. Personal power could well be his primary goal-- rather than the greater good of the company, its customers, employees, suppliers and stockholders. If you want evidence of this perspective, drive a GM product and ask yourself a simple question: why isnt it better?
I know: its a deeply cynical portrait. But GM is a deeply cynical company. After launching and vigorously defending its post-fire sale value pricing strategy, after going to all the trouble to retrain its front line salesman to switch from deal-making to product pushing (at a cost of millions), The General has just announced a year-end Red Tag sale to once-again clear its bloated inventories. At the same time, theyre taking credit for building-up their inventories [supposedly] in preparation for the inevitable Delphi strike and resulting production shutdown. Is this first-class crisis management, gross incompetence or a reflection of something darker, something rotten in the heart of RenCen? Im beginning to lean towards the third option, and so is Wall Street.
Financial analysts like Banc of America's Ron Tadross havent suddenly woken-up to The Generals fundamental flaws and looming troubles. Theyve simply begun to see that The Generals generals don't have a viable plan for winning the battles-- never mind the war. And like Kirk Kerkorian, they can smell imminent exsanguinations from a mile away. Each day, the likelihood grows that Captain Kirk or another similarly voracious corporate raider will swoop down and buy Rabid Ricks alma mater, sell off the entire GMAC finance unit, pocket the profits and flog the unprofitable automaking side of the business for chicken feed. Either that or just close the factory gates and walk away.
According to Rabid Rick Wagoner, terminating his employment would only slow down GM's recovery: "When you bring in a lot of new people, you bring in a lot of change and people just sort of sit there and try to figure out what to do." As opposed to what? Keeping the same old people and making no changes so that people can sort of sit there and watch the worlds largest automaker go bankrupt? Ricks comment appeared in AutoWeek immediately after Standard & Poors rating service downgraded GMs credit rating to B, some five steps below investment grade, with a negative outlook. Clearly, Wagoner is to leadership what penguins are to civil engineering.
Like any clueless corporate alpha, Rabid Rick wants us to believe that everythings under control. Indeed, hes instructed PR flack Gina Proia to tell the world that GM has an aggressive and well thought-out strategy to turn around our North American business. Apparently, this comprehensive plan comes complete with quantifiable goals, implementation dates and, well, everything Ricks mob needs to save GM from a Valentines Day Massacre. Only AutoWeek reports that Rabid Rick prefers to keep it private. In fact, GMs would-be savior declined to predict whether GM's North American automotive operations could break even next year. [NB: could not would.]
Other people may or may not have time frames, but it's not what I'm worried about," Wagoner told AutoWeek. "I'm focused on the fact that we need to fix the business, and that's really what is driving me." Why do I keep seeing images of Rabid Rick in a pinafore, wandering through a vast wonderland of unsold GM product? In what alternative universe is it OK for the head of the worlds largest automaker to stare financial oblivion in the face and say trust me, dont rush me? Lewis Carroll himself would be proud of Wagoners strange rhetoric, which blithely suggests that timetables are antithetical to corporate repair.
Anyway, its not as if GMs rivals are about to steal Rabid Ricks master plan, so that they can counter The Generals new product launches and/or drive their company into the ground. UNLESS Rabid Ricks briefcase actually contains the codes for the nuclear option. Sure! Ricks mob have a secret plan to leave Delphi twisting in the wind and let the United Auto Workers (UAW) strike. GM would then fall into bankruptcy accidentally on purpose, so it could jettison its UAW contract, close factories, cut brand deadwood, realign the product portfolio and
Yeah right. Back here in the real world, Rabid Rick is fighting for his companys survival by strolling down the path of least resistance. Rather than make a stand against the UAW, Rabid Ricks ready to pay the blood money needed to forestall a Delphi strike-- even though we certainly didnt budget for stuff like that. Rather than kill-off Buick, Saab and Saturn, Ricks content to let their salesmen hit the forecourt like members of Robert Scotts ill-fated Antarctica expedition (i.e. I may be some time.) Rather than slash GMs model range across the board and concentrate on building the worlds best cars, Ricks happy to manufacture dozens of mediocre examples of the sorts of vehicles people may want to buy by the time GM finally gets around to building them.
Rabid Ricks timidity makes me wonder if hes even trying. When asked about the SUV slump in Automotive News, Wagoner claimed the company was powerless to respond. "We just couldn't react," he admitted. "It really highlighted that the underpinnings of our business are too fragile if we lose mix or volume, we cannot get costs down as fast as (sales) volume comes down." Does Rabid Rick really think that GMs ability to turn tail and run is the key to its success? Wouldnt building hybrid SUVs, killer crossovers or awesome sedans have been the better option?
As the Italians say, the fish stinks from the head down. If GM couldnt detect and react to a change in market conditions quickly enough to avoid losing its proverbial shirt, thats because its CEO couldnt perform with sufficient insight, speed or decisiveness. If the UAW is tying Wagoners hands, preventing him from doing what needs to be done, its his job to sever those bonds, once and for all. It's one thing to admit you made a mistake, its another to have the courage and wisdom to make sure it never happens again. Isn't that why Wagoner gets paid so much money?
News reports recently revealed that The Generals CEO has negotiated a deal with GMs Board of Bystanders that makes his multi-million dollar pension fund bankruptcy-proof. Not only is that a boneheaded move relative to GMs negotiations with the UAW (which include pension liabilities and contributions), but it betrays Rabid Rick's stunning lack of confidence in his own talents. It's an opinion that's increasingly easy to share.
Maybe the guy does talk some crap for entertainment purposes but he does speak some sense aswell and for average joe on this forum they will now be able to follow and understand as to why GM is in the position it is today. The UAW as screwed them up majorly and the GM execs are cheapskates and money hungr
PovertyIf one man says your horse is a mule its a horse.
But if 10 men say your horse is a mule well then its a mule.
And here you go heres the source.
http://www.thetruthaboutcars.com/content/11356501321576650551/
You should be used to it by now. And I doubt they'll ever quit. How many billion is GM in debt, right now, exactly?And how many cars have they sold exactly in this last year?BlazinXtremeI'm frankly getting tired of people bashing GM.
neanderthalbut why complain. we slam toyota for making boring cars too dont we?
What year Altima though? Mine's '04. You know, the one right before they corrected the interior. Altima is possibly the worst Japanese midsize sedan right now, so I don't know if comparison to Altima says much about G6. I'm not trying to be a jerk, but I drive one and you drive one, so you know Altima is not as refined as other imports(I do love the engine though).YSSMANThe article you quote talks about the G6 and it's percieved quality issues, but as an owner of a Nissan Altima 2.5S, I can assure you that the Nissan is FAR behind that of the G6... Indeed the Nissan has a lower grade of plastics and cloth seats than those in the G6, and if anything, the G6's ride and overall refinement is much better than that of the Nissan. Seriosuly, if this Truthaboutcars.com or whatever the hell they call themselves actually know anything about cars, it is easy to see the G6 is a superior product.