Thread: LTSG part II
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Old 12-23-2008, 10:10 AM   #1 (permalink)
Cdesign
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LTSG part II

I wrote the thread, "My plan for Long Term Sustained Growth" before long term sustainability was the catch phrase around DC.

To further update the plan, and make it even more likely to suceed, I am adding one key ingredient.

Cheap Cars. In the US, cars and homes are the two major costs of living. Many people need vehicles in order to work. Riding a bus or train is simply not an option. However vehicle prices have risen steadily, incomes are going down, and there plenty of options at 30k, yet very few under 10k. Therefore, I would propose that GM create a Cheap Car division out of Saturn, instead of killing it off. Ride out the current platforms and start introducing very inexpensive cars. Not Aveo's rebadged, but new inexpensive cars that don't necesarily say "cheap". Look at the new Fiat 500, the original Beetle, Scion, Kia, etc. They don't need 12 inch wheels and to look like a regular sedan after being crushed.

I would say the cars should range in price from 7,000 up to 14,000. With a range of cars under 10k even, there would be a lot of customers who could then buy a new car who previously couldn't, or had few options. In addition, the looks would draw in buyers who would otherwise buy a used vehicle to get something better looking.

In addition, Hummer stays. Instead of trying to become the end all SUV, Hummer becomes a military and farm spec vehicle manufacturer. From a 10,000 dollar basic light weight 4X4 which would be easy to fix and hard to break to a full out armored 150,000 dollar troop transport. They would move towards off-road capable lower priced vehicles instead of loaded up cush-wagons which some people might actually take off road. A cheaper jeep alternative, but not with as many different badges. A 2 door open top jeep style off-roader for 10k, with truck and SUV bodies optional. Hummer would in effect become a government supplier.

Saab, keep them and stop running their show. Let them run on their own and learn from it.

Last edited by Cdesign : 12-23-2008 at 10:23 AM.
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