Fortune: Deepening gloom at GM

[Stéphane Dumas]

Originally Posted by 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.

A outsider could be interesting but we have to be careful to chose the right guy. Ford hits the target with Mullaly while Chrysler is less lucky with Nardelli.

Maybe, I think it's time for Frederick "Fritz" Henderson to step him as CEO.

Edit: Even if I hate the idea but I feel resigned,.......Carlos Ghosn!

[1487]

There are huge numbers of Americans that wont consider an American branded car, period. Those same people dont have the same view of American branded SUVs. Since Suvs are on the way down the Big 3 are paying a heavy price. GM's products are better than ever but many people do not care. When will people on this site get it? What Rick or Lutz or anyone else does is largely irrelevant to many buyers. These folks have been raised on the idea of complete superiority of Japanese product and they will not be changining anytime soon. Once the Big 3 fold or become a shadow of their current form everyone is going to blame anyone but the American public. They have improved quality, styling, handling, interior design, plant efficiency, warranty protection, etc. and we have people here saying they have basically done nothing and have ceded the car market to the Asians. Thats BS and anyone who believes it is a moron. Americans dont want American cars and that is the hard reality. I hope Wagoner and Lutz do get fired so some of you people can see it wont make a damn bit of difference. If GM was run by the Toyota family it wouldnt make any difference. The only way for GM to avoid further erosion is to be absorbed by a foreign competitor that will give its products credibility.

[PAULSTS1]

GM is a gigantic monolith, it's way too big and expensive to run for anyone to buy it, outside of a Bankruptcy firesale. It's also beyond, fixing, there is no investment money available...It should probably file chapter 11.

[wescoent]

Originally Posted by PAULSTS1

GM is a gigantic monolith, it's way too big and expensive to run for anyone to buy it, outside of a Bankruptcy firesale. It's also beyond, fixing, there is no investment money available...It should probably file chapter 11.

$5.1 billion is all it would take to make an tender offer for 51% of the stock @ $18 per share, and give the buyer effective control of the company.

This is a very feasible scenario at this time, and the matter is being discussed by at least one bank...

[GMC-70]

With no GM the country will be full of these:



Oh wait!---we already are full of these....come on people wake up---snap out of it!

[PRO_USA1776]

I don't get it. When GM talks about upcoming plans in detail everyone tells them to shut up, its too early etc. I for one think GM is on track, they have a ways to go, but I wouldn't discount them yet.

[Ambalanche]

GM needs a surprise hit! Yeah, the Malibu is a hit, but I mean something that people "gotta have"! (Remember that one Bob?) Something that will sell in Camry numbers.

[ksr]

It sounds like the Malibu might approach Camry numbers, if GM can produce them.

It's got to be depressing to work at GM now, whether you're on the line or at corporate.

Heck, my company can have one down quarter where we're still profitable, and management conveys a sense of doom and gloom. With GM's cash burn rate, there's got to be a huge sense of uneasiness for everyone about the future.

[tgunnd39]

If GM goes down, (and I am abivalent on that one), then America really is in trouble.

Our government, unlike the governments of GM's foreign competition, does not seem to have a basic grasp of trade and tariffs. Business owners/managers lack any comprehensive plans for future growth and long range planning, and we have sold out to the highest bidder some of our most complex technology thereby allowing foreign competition to own entire industries, (to whit, televisions, cameras, DRAM chips,etc.), which in turn sell those products right back to us while destroying our manufacturing base.

Face it folks, we, not anyone at GM alone, have done this to ourselves. America is destined to end up a third rate nation unless we all start talking/planning/doing something about this right now. Just look at France, Canada and Britain to see what we can look like in ten years should we fail at saving our most basic industries.

My .02

PS-Before you jump on me as a Brit/Fran/Can hater, not one of those nations is a world power, ie., not one of them is respected because of their pastries or crowns!

[caddyman23]

Originally Posted by 1487

Americans dont want American cars and that is the hard reality.

The entire, sad scenario summarized in one eloquent sentence.

[tgagneguam]

Originally Posted by fp115

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

So, counter the valid points he made in the article.

[tgagneguam]

Originally Posted by PAULSTS1

GM is a gigantic monolith, it's way too big and expensive to run for anyone to buy it, outside of a Bankruptcy firesale. It's also beyond, fixing, there is no investment money available...It should probably file chapter 11.

Ah, the new American way of success: can't find a way to survive, file bankruptcy and have everyone else pay your bills! Unbelievable. Thank God the founders of this country didn't think that way; we never would have become the greatest democracy on the planet.

Originally Posted by tgunnd39

If GM goes down, (and I am abivalent on that one), then America really is in trouble.

Our government, unlike the governments of GM's foreign competition, does not seem to have a basic grasp of trade and tariffs. Business owners/managers lack any comprehensive plans for future growth and long range planning, and we have sold out to the highest bidder some of our most complex technology thereby allowing foreign competition to own entire industries, (to whit, televisions, cameras, DRAM chips,etc.), which in turn sell those products right back to us while destroying our manufacturing base.

Face it folks, we, not anyone at GM alone, have done this to ourselves. America is destined to end up a third rate nation unless we all start talking/planning/doing something about this right now. Just look at France, Canada and Britain to see what we can look like in ten years should we fail at saving our most basic industries.

My .02

PS-Before you jump on me as a Brit/Fran/Can hater, not one of those nations is a world power, ie., not one of them is respected because of their pastries or crowns!

This is fear mongering, and you know it. There are plenty of US industries the out-maneuver the competition, all without the help of the US government. As the way it should be. Today's events didn't occur in a vacuum; they resulted from Detroit's continued lack of execution of a clear business plan, plain and simple.

Originally Posted by 1487

There are huge numbers of Americans that wont consider an American branded car, period...

There are huge numbers of Americans who won't buy American-branded products because those American companies gave up on their customers and took advantage of them for too long. Now, satisfied by their American-made, foreign-branded cars, they won't return; there's simply no reason to return. As long as Detroit perpetuates a woe-is-me attitude, they will continue to slide into insignificance. And when they do, I will rest the blame squarely on their shoulders, where it belongs; don't blame American citizens for the collapse of American companies.

[geozinger]

Originally Posted by Stéphane Dumas

A outsider could be interesting but we have to be careful to chose the right guy. Ford hits the target with Mullaly while Chrysler is less lucky with Nardelli.

Maybe, I think it's time for Frederick "Fritz" Henderson to step him as CEO.

Edit: Even if I hate the idea but I feel resigned,.......Carlos Ghosn!

No, no, no...

Wolfgang Bernhard?
Frank Stronach?
Roger Penske? (Please?)

Don't be so fast to congratulate Mr. Mulally... Ford is entirely mortgaged now, if they don't make it, the banks will completely own them... Nothing leftover for the family...

[Buickman]

the bottom line for those who can hear this:

Red Ink Rick has to go!

otherwise the banks, lawyers, and accountants will be the only ones to collect.

there is serious money for the afore mentioned groups in a BK, ie. Delphi. as in hundreds of MILLIONS.

if you care, join the increasing call for Red Ink Rick's head. make no mistake, the man is EVIL!

[tgunnd39]

Originally Posted by tgagneguam

This is fear mongering, and you know it. There are plenty of US industries the out-maneuver the competition, all without the help of the US government. As the way it should be. Today's events didn't occur in a vacuum; they resulted from Detroit's continued lack of execution of a clear business plan, plain and simple.

Sorry, t, no disrespect intended, but you are wrong.

It is simple historical fact:

1. When our government opens the doors to free trade to foreign competition, the governments of which impose draconian trade policies and measures of protection on imports, and we do not do likewise, then we have a serious problem.

2. When American businesses sell assets and ideas with no long term vision in order to make a quick buck, or because of poor planning, (see, TV, Cameras, IC chip production; the list goes on and on), then we have problems.

Please notice that I said "we" are the problem in my orignal post. I did not let GM, Ford or Chrysler off the hook. I said that we all are part of the problem. Certainly GM and its brethren shoulder a large part of the blame, but can you blame GM for selling millions and millions of pickups and SUVs and making a profit on them when gas was cheap? I do not believe that anyone twisted the arms of those millions of buyers. Please note also, that the big three Japanese manufacturer's also designed and built large trucks and SUVs. Are they being classified as lacking vision and genius as GM invariably always is when these events occur? I think not.

You are right that events do not occur in a vacuum. However, ALL causes need to be examined when looking for reasons. I just happen to believe that we often overlook the most basic causes in our quest to point fingers because oftentimes those causes point right back at us.

'Nuff said.