Fortune: Deepening gloom at GM

[Lichtronamo]

Deepening gloom at General Motors
As the auto giant grows sicker, its chances for a full recovery get dimmer.

By Alex Taylor III, senior editor
Last Updated: June 19, 2008: 10:05 AM EDT

NEW YORK (Fortune) -- The news coming out of Detroit is getting worse, and unlike in past years, there will be no full recovery. Analysts are betting that General Motors will be forced to take emergency financial measures this year that could hamper its competitiveness for a long time to come.

Full Article:

http://money.cnn.com/2008/06/19/news...ion=2008061909

[fp115]

You can tell this was written by an import lover. Not a great article in my opinion.

[TriShield]

Originally Posted by fp115

You can tell this was written by an import lover. Not a great article in my opinion.

This is the type of thinking that has driven GM to the brink.

[fp115]

Originally Posted by TriShield

This is the type of thinking that has driven GM to the brink.

So something like this:

But a lot stems from the poor running of the day-to-day automotive business. Every time that gasoline prices have spiked, GM has gotten burned, and its Japanese competitors have out-maneuvered it at every turn: first into small cars, then to crossover vehicles, and now with hybrids and other fuel-saving technologies.

Has driven GM to the brink?

I don't see any other company with a sparkplugless engine. I don't see any other company with a system as complex as eFlex. I don't see any other company working on several different types of fueling methods for the future and allowing their cars to work on them. I also do not see how the Japanese have better cross-overs than the Lambdas or the Vue. Sure have a nick at GM for the bad stuff, but at least give them credit where they deserve it.

[Buickman]

Originally Posted by fp115

You can tell this was written by an import lover. Not a great article in my opinion.

Alex Taylor has been one of the most consistent and ardent supporters of GM for many, many years. this is common knowledge. when he turns critical and starts pointing blame at "bad decision making" and "poor running of the day to day business", there is no where for Red Ink Rick to run and hide.

[slade'man]

Originally Posted by fp115

So something like this:

Has driven GM to the brink?

I don't see any other company with a sparkplugless engine. I don't see any other company with a system as complex as eFlex. I don't see any other company working on several different types of fueling methods for the future and allowing their cars to work on them. I also do not see how the Japanese have better cross-overs than the Lambdas or the Vue. Sure have a nick at GM for the bad stuff, but at least give them credit where they deserve it.

Does GM have any of those things available right now? No... None of these things will available until the coming years. Toyota has a full line up of hybrids that are selling like hotcakes, and I hate it. We have to be real here, some heads need to roll in Detroit.

[mgescuro]

Lambda is large.
VUE is extremely heavy.
GM isn't marketing its sparkplugless engine in the US.
EFlex is 18 months out.

GM is still too dependent on full sized SUVs and Trucks.
GM doesn't have a truly competitive compact car. It's still 1-2 years out.
GM doesn't have a subcompact car other than Aveo.

GM's efficiency initiatives are still 1-3 years out.
What does GM have now?

While the article is a little "the sky is falling," let's just say there's a lot of grey clouds gathering.

[steve333]

I would say Ford is in better shape than GM right now. It may be hard to see it but Mullaley is kicking tail. He is getting the Fiesta here quickly followed by the other Euro spec Fords-the Kuga, Focus, and who knows, maybe the Mondeo?
GM is a slug. Not to mention their cars are still using faulty parts, such as the steering issues that STILL have not been addressed even though GM knew about it for 4 years and up. Faulty steering columns and intermediate shafts. I'm shocked there hasnt been a class action lawsuit already.

[PAULSTS1]

GM is reactive, not proactive, it's a company which will die suddenly! Since the early 1970's when the oil embargo caused all the beginning of problems, all auto manufacturers should have cancelled their alliances with the Oil Industry. At that time they should have created 3 types of vehicles: Fuel effcient, Luxury, and Utility vehicles, constant upgrades would have made them all lighter more efficient and market ready.

The GM board was static, and drained the company of resources, now they can't do anything, the spiral down is out of control. The Chairman, and Co-chairman should resign.

[redimpss5]

Wow, what gloom are they talking about? Many GM cars are selling pretty good and not being recalled, like some others are.

[dav305z]

I don't know if GM is going to escape this one. Even with a good economy their recovery plan was uncertain. Now it's unlikely at best.

These are some really dark days we're living through. Of all the years I could have graduated college...

[TexCarFan1980]

In response to redimpss5...

Hmm..let's see. They just recently recalled over 2 million GM SUVs for potential fire hazards. More at this link... http://www.autospies.com/news/NHTSA-...e-fires-31264/

May want to check your facts

[TKR]

Originally Posted by TexCarFan1980

In response to redimpss5...

Hmm..let's see. They just recently recalled over 2 million GM SUVs for potential fire hazards. More at this link... http://www.autospies.com/news/NHTSA-...e-fires-31264/

May want to check your facts

Talking about facts, read the article again - it is not a recall - yet. An investigation is under way.
Maybe there is a common component that is fitted to all these vehicles that failed? Maybe it is a coincidence? The big numbers is because GM sells a lot of these vehicles. The same thing happens when Toyota has a Camry recall (which they have had) because they sell so many of the things.

[Odin]

Sometimes I start to think GM could use a new ceo like at ford. Someone who can give it a bit more of a push, at the moment gm reminds me of a ping pong ball, it seems to be chopping and chaning all the time, and doesn't have a real focus. Why they still have saab I don't know, that should be sold as well.

[Markviii]

A lot of people here are drinking the koolade. The Domestic car companies are in a lot of trouble and have been for awhile. I have never bought a foreign car so i am supporter of domestic nameplates. However, they have no one to blame but themselves (and to some part american citizens who do not support there own people). This all started in the mid 70's when quality of domestic cars were poor. It continued threw the 80's with crappy cars and crappy interiors and crappy materials. There have been some high points threw the 90's but not much improvment. And now the rest of the world is having a field day selling cars to our people. you all could sit here and blame the unions, but if we were building the right vehicles we would not be in this situation. It comes down to accountability and the (former) big three have none to speak of. I expect toyota to be number 1 in this country very soon. Honda could be number 3. Chrysler could go out of business. its a new world.