Can GM Come Back?

[TruckMan]

Originally Posted by ByTheLake

What technologies does GM have that its competitors lack? Toyota appears just as far along with its plug-in hybrid technology as GM. GM has some interesting fuel cell/hydrogen technology, but others, like Honda, appear to be a bit closer to production.

It's not the technology that GM is lacking, it's other things that GM is lacking - market trend forcasting, quality (perceived or not), exciting products, etc.

[GMforME]

Truckman
when the cruze (ie cobalt replacement)comes out with a 45 highway and a 38 city and significantly under a prius which in the real world is in the 45 to 48 range highway hybrids are going to have a tough time.

[eaton53]

Originally Posted by camaro_freak

yes the Escape is an old design but that proves they've been out longer with good product and a hybrid to boot just as long if not longer than GM.

No, it just means that Ford has a continuing habit of keeping old, uncompetitive product around, which they just keep refreshing and selling on price.

The latest Escape update is probably about as good as can be expected, but doesn't cut it compared to the thoroughly modern (although a bit porky) VUE, which is fully capable of competing with the class leaders.

The Focus, on the other hand, is selling strong due to content like the Sync and other features. Granted the Focus is old, but Ford went after the right market with the upgrades.

And the Cobalt needs updating just as badly as the Focus so don't even try to pull that stuff.

Well, the Cobalt just won the Fast and Frugal comparo, so it's definitely got the goods.

Most of the calls for updates have to do with styling... in the lower trim levels it just looks too much like a Cavalier. The SS coupes look a lot better.

[The Law]

The 1st step for Gm was profit with the Cuv's but the market changed before they hit the road, next will be mid size to large sedans ;which is alot of the market ,then Delta's and smaller ;which is now becoming a more commercial .Of course, The Volt will change brand image for GM, but will not solve all the problems over at GM.They have to be able to adjust to market change quicker than previous years.

[dagr382]

Originally Posted by ericmvest

The positives:

1. I think General Motors has its best senior management in decades.
2. The product launches over the last three years are second to none and future product appears excellent also.
3. JD Powers and the Harbour Report verifies that General Motors' quality and productivity is right up there with Toyota and Honda.
4. General Motors' pension is fully funded.
5. General Motors is handing off responsibility for hourly retiree health care benefits to the UAW.
6. General Motors series hybrid approach (Volt) appears to be superior than Hybrid Synergy Drive.
7. The Volt's development appears to be on track.
8. The Two Mode Hybrid appears better than Hybrid Synergy Drive.
9. General Motors is a leader in flex fuel vehicles.
9. General Motors appears to be the leader in fuel cells.
10. General Motors' June sales performance was better than Toyota's.
11. General Motors UAW agreement appears competitive with the transplants.
12. General Motors buyout programs are attracting enough buyouts.
13. General Motors is doing very well in practically every market except the United States.
14. General Motors design/styling is the best in decades, probably since the Bill Mithcell era.
15. General Motors has survived rough patches before. General Motors faced insolvency in 1909 and 1920 when they were bailed out by New York banks and the DuPonts, respectfully. General Motors turned itself around and thrived after these experiences.

An arguement could be made that General Motors is improving at an impressive rate and Toyota is getting worst. Toyota's recent product launches, such as the Corolla, Sequoia, and Tundra, are uninspiring and their quality and plant utilization is going south. It's not your father's Toyota anymore.

Well said!

[SierraGS]

Originally Posted by tgagneguam

Funny, the list of competitive pressures that face GM face just about every other automaker operating in the US. Sounds like management's gonna run out of excuses.

Of course, it can! It has almost everything-short of talented leaders-it needs to make that happen.

I find it interesting that the author draws a similar conclusion as I do, given the grand media conspiracy working daily to bring about the destruction of The General Motors Corporation.

This part of the article caught my interest:
"And 2010 is critical for General Motors in another way. The 2007 agreement with the United Auto Workers set up a voluntary employee beneficiary association that, if approved by the courts, would transfer $40 billion in health care liabilities off GM's balance sheet. The savings, the company estimates, would run about $2.6 billion to $3.4 billion in 2010 or 2011. Court approval is expected in 2010. The savings would go a long way toward bringing GM's costs in line with other carmakers operating in North America."

One of GM's current problems is this huge future health care liability that it carries on it's books that potential investor/lenders review when evaluating GM, If/When this liability "officially" goes away, GM's financial position will greatly improve.

Now the question is will GM be ready to take advantage of it?

GM has to do some realignment and attract new capitol before this and some ways to accomplish this GM must REDEFINE itself and finally making major changes within the management structure.

1. Marketing should move to Southern California to see “first hand” how the competition operates here and the problems GM dealers have moving GM products in the California market and get “one on one” time with both the dealers and customers. This “insight” will enable GM marketing to better equip models with the correct “content” needed to improve sales to both import and domestic buyers in California.

GM has to get in touch with the loyal buyers it has and conduct some market research on what they consider important and what they are looking for in their next GM product.


2. GM needs cash and positive cash flow today more than ever and must make adjustments to previous decisions such as fleet sale reduction.

Fleet sales must be increased on high inventory models, outgoing models and ones with name changes pending to generate as much cash in the shortest amount of time, not talking dumping here more inventory reduction coupled with production adjustments to get 2008 model vehicle inventory where it needs to be across the board.

Selling down inventory that GM knows are going to be difficult "retail sales" MUST be done to remove a "problem" GM management has to deal with when they need to focus on more important issues.


GM has assets that are not creating the cash flow they are capable of and offer opportunities for GM to build both market share and cash, assets like:

3. Hybrid Technology: GM has built up expertise in Hybrid technologies like Two-Mode and E-Flex that can attract private equity if GM creates a separate business unit for it. This new unit can create powertrain, control modules and battery technology for future applications in GM’s own products and license them to others.


4. Dealer Network: The most underused and misunderstood asset GM has, most dealer profit lie in used vehicle sale, accessory sales, parts and service not new sales. GM has the most extensive network in the industry and treats it like a liability not the asset it represents. The retail portion of the network can have a business unit created with private equities help remaining completely separate from GM, relieving GM from the day to day retail cost burden. Ad and web site management costs can be consolidated throughout the country with data on latest market trends like color and interior preferences shared between dealers. This data can be fed back to GM’s marketing for national ad strategy and future product development.


5. Production Facilities: GM has excess facilities that can remain vehicle production centers for companies looking for a U.S. location in a JV with GM (or not) and with a private equity partner used for Alternative Energy production like Cellulosic Ethanol or Algae to Bio-Fuel providing GM with additional cash flow.

These 5 steps are relatively easy to do and can generate/save cash in the next 2 years.

[New_Mexico_Sunset_on_Rt66]

We are on GMI, right?

[Buickman]

Originally Posted by ericmvest

The positives:

1. I think General Motors has its best senior management in decades.
2. The product launches over the last three years are second to none and future product appears excellent also.
3. JD Powers and the Harbour Report verifies that General Motors' quality and productivity is right up there with Toyota and Honda.
4. General Motors' pension is fully funded.
5. General Motors is handing off responsibility for hourly retiree health care benefits to the UAW.
6. General Motors series hybrid approach (Volt) appears to be superior than Hybrid Synergy Drive.
7. The Volt's development appears to be on track.
8. The Two Mode Hybrid appears better than Hybrid Synergy Drive.
9. General Motors is a leader in flex fuel vehicles.
9. General Motors appears to be the leader in fuel cells.
10. General Motors' June sales performance was better than Toyota's.
11. General Motors UAW agreement appears competitive with the transplants.
12. General Motors buyout programs are attracting enough buyouts.
13. General Motors is doing very well in practically every market except the United States.
14. General Motors design/styling is the best in decades, probably since the Bill Mithcell era.
15. General Motors has survived rough patches before. General Motors faced insolvency in 1909 and 1920 when they were bailed out by New York banks and the DuPonts, respectfully. General Motors turned itself around and thrived after these experiences.

An arguement could be made that General Motors is improving at an impressive rate and Toyota is getting worst. Toyota's recent product launches, such as the Corolla, Sequoia, and Tundra, are uninspiring and their quality and plant utilization is going south. It's not your father's Toyota anymore.

lunch is only one hour. let me know when you punch back in.