GM STATEMENT: "We acknowledge we have disappointed; Violated your trust; Lost focus"

[JBsZ06]

Good to see Lutz interview with the NY TIMES today. He nailed it.

I happen to agree with Lutz and disagree with the corporate statements of apology about the 1980's product. I think the congressional attacks on GM are unwarranted and blantant showboating by members of congress.

I wouldn't vote for one of those condensending @ssholes if my life depended on it. (not that my vote matters but still for those that attack the CEO's or the automobile industry's failures will never get my vote)

Proud to be an american should be the mantra congressman use as they decide to LOAN the auto industry 25 billion at 5%....

I still think the 300 billion Citicorp got....or the 150 billion AIG got...or the 30 billion Bear Sterns got......are the main thrust of why the big three CEO's are getting bashed..

The congressman are hitting the wrong punching bag...and you couldn't pay me enough to put up with the congress nonsense... Oh wait.....wagners getting a buck for next years work? WTF...

Who'd want that job?

Wagners a good man and all the naysayers can bitch all they want...

Who has a crystal ball that reads the future where the credit crunch was coming?

Bail GM for that? Nonsense.

A sales drop in american automobiles from 17 million cars a year to 10 million ...

Who could forcast that?

NO ONE...Thats who...

Lutz is right on the money in his statements.

[Buickman]

Red Ink Rick unherited too many problems?

do you have all day? he could have stayed away from Zarrella, he could have left John Rock alone at Olds. he could have shut Saturn down long ago. he could have stayed the hell out of Fiat. could have kept Delphi inhouse, could have held marketing staff resposible. could have ousted Deloitte and rotated auditors to generate accurate and truthful financials, and of course...could have let LaNeve go forward with implementing Return to Greatness.

he could have kept an eye on Eric Feldstein at GMAC and not let mortgages be written that would jeopardize the future of GMAC. he could have listened to Jerry York and changed the Board meetings to an actual working environment. he could have detailed plans and earnings guidances instead of offering nothing more than that smug smirk, stutter, and eye twitch.

he could have held annual meetings in Detroit where the people are, he could have gathered individuals from the industry for the Board instead of British Petroleum, Goldman Sachs, and Astra Zeneca. he could have kept the great car names of our past, he could have put people to work in some capacity instead of idling them in the Jobs Bank. he could have let natural attrition replace long term employees over time instead of throwing money at them with reckless abandon. he could have left the retirees alone to enjoy their well earned security (after all they are our greatest ambassadors). he could get off the culling of dealers who are our greatest strength.

[mobyss]

Originally Posted by Xenon

Sorry to rain on this parade but GM did a VERY similar campaign five years ago...



Apparently GM hasn't done much since then.

Your post is what I was thinking about - the "long road to redemption" marketing ploy GM came up with five years ago. Another "We're SO sorry - please trust us now" type of thing, and where did that lead?

I'm a GM fan, been posting here since early 2003, but I really don't believe that these taxpayer loans will be well used, or will lead to anything substantial. Last night watching some business news program where they were discussing the terms, I thought that GM will undoubtedly be back begging in front of Congress by next July. Maybe then Rick will wear a striped "Uncle Sam" suit and top hat and try to sell that idea that Supporting GM With More Free Taxpayer Money = Loving America = Isn't the Fourth Of July This Month?

The US car market is going to shrink from 17+ million cars sold in 2006 to probably about 12 million or less next year. Somehow, 5 million cars must NOT be built and dumped into the supersaturated marketplace. GM, being about 25% of the market, will have to NOT BUILD about 1.25 million cars next year, assuming market shares stay the same.

How many cars does Buick, Poniac, Saturn, Saab, and Hummer put together sell each year? Until these real, hard, ugly decisions are made and executed, all the taxpayer loans in the world won't make any real difference.

[mobyss]

Originally Posted by LONGHORN

Why isn't anyone concerned about the provisions for this money. The provisions alone will be enough to bankrupt the Big 2.5. Ford would be smart not have any part of this. Look at this clip from Autoblog.

They report that the bill contains provisions for a federal official, or "Car Czar" as the position will no doubt be referred to, who would oversee distribution of the funds and have authority to yank them back if an automaker is deemed to be using them ineffectively. The bill also requires automakers to submit another restructuring plan by March 31, 2009, after which the Car Czar could use his or her powers to reopen negotiations with the company, its creditors and the United Auto Workers union.

Part of the bill also stipulates that if the Detroit 3 accepts these loans, they must promise to stop pursuing litigation aimed at striking down California's right to set its own emissions standards and other states' right to adopt them. The California Air Resources Board has created emissions standards the are generally more strict than federal standards, and so far 17 states have chosen to adopt the Golden State's measures.

Detroit is backed into a corner, however, and will likely accept any conditions that Congress attaches to the bailout bill. With that in mind, Democratic leaders in Congress and the White House say that approval for the bill is likely, which would see around $15 billion in federal loans granted to the Detroit 3 as soon as December 15th.

Yes, a lot of the provisions are stupid, but that's what you get when liberal Democrats are given the opportunity to weigh in on what they think car makers should do. The California rules will result in smaller, less powerful cars all across the nation, whether you want them or not.

Too bad for GM, Ford, Chrysler, and all of us. Wish they had planned ahead and made better management decisions over the last 30+ years, but they didn't.

Oh well, beggers can't be choosers! Welcome to "Nancy Pelosi's Liberal Utopia Car Show"! Your 3 cylinder hatchback with no AC and 115/85/13 low-rolling-resistance tires is waiting for you!

[MaxLegroom]

Originally Posted by Tone

I do think the former could work, particularly if he's willing to go back to the dark days (which, if I'm correct were before he was an exec) and can "do a Delorean" (read "On a Clear Day You Can See General Motors", if you haven't already) and canditly speak about his amazment of some of the decisions made at the time.

Thanks for reminding me, the book is surely somewhere on my shelf, and I should read it again...

[2002 Caddy]

Originally Posted by mobyss

Your post is what I was thinking about - the "long road to redemption" marketing ploy GM came up with five years ago. Another "We're SO sorry - please trust us now" type of thing, and where did that lead?

And there is one that predates the one that predates this one...
How soon we all forget the most infamos marketing slogan OF ALL time...

This is just another rehash of
"Not your Father's Oldsmobile"

[Geotpf]

Originally Posted by Orbit

Xenon, nice find from this 2003 campaign about GM's "redemption," which means nothing without clear acts, but GM's management has only made their situation much worse compared with 2003 (or even decades before then). After two such "apologies," GM has only two truly world-class cars, the Malibu and the CTS. BUT...serious quality issues still remain, even for newer products. Check out this long-term test of a Saturn Aura by Edmonds:

http://www.edmunds.com/insideline/do...hotopanel..4.*

Besides other problems, the steering wheel trim kept falling off! Without a total management change, there is no hope that even scads of billions in "bridge loans" will turn GM into a success. That is, increasing your debt load will only further enable the failure of your company without bold and visionary management of the kind now totally absent at GM.

There is a solution here. Get your Consumer Reports reliability survey scores up. Ford did. Guess what-they are the only Detroit automaker who isn't going to go bankrupt next Tuesday.

[Xenon]

Originally Posted by Orbit

Xenon, nice find from this 2003 campaign about GM's "redemption," which means nothing without clear acts, but GM's management has only made their situation much worse compared with 2003 (or even decades before then). After two such "apologies," GM has only two truly world-class cars, the Malibu and the CTS. BUT...serious quality issues still remain, even for newer products. Check out this long-term test of a Saturn Aura by Edmonds:

http://www.edmunds.com/insideline/do...hotopanel..4.*

Besides other problems, the steering wheel trim kept falling off! Without a total management change, there is no hope that even scads of billions in "bridge loans" will turn GM into a success. That is, increasing your debt load will only further enable the failure of your company without bold and visionary management of the kind now totally absent at GM.

Which is precisely why the public has a low opinion of GM begging for money. Nobody likes to reward poor management.

[Xenon]

Originally Posted by mobyss

Your post is what I was thinking about - the "long road to redemption" marketing ploy GM came up with five years ago. Another "We're SO sorry - please trust us now" type of thing, and where did that lead?

I'm a GM fan, been posting here since early 2003, but I really don't believe that these taxpayer loans will be well used, or will lead to anything substantial. Last night watching some business news program where they were discussing the terms, I thought that GM will undoubtedly be back begging in front of Congress by next July. Maybe then Rick will wear a striped "Uncle Sam" suit and top hat and try to sell that idea that Supporting GM With More Free Taxpayer Money = Loving America = Isn't the Fourth Of July This Month?

The US car market is going to shrink from 17+ million cars sold in 2006 to probably about 12 million or less next year. Somehow, 5 million cars must NOT be built and dumped into the supersaturated marketplace. GM, being about 25% of the market, will have to NOT BUILD about 1.25 million cars next year, assuming market shares stay the same.

How many cars does Buick, Poniac, Saturn, Saab, and Hummer put together sell each year? Until these real, hard, ugly decisions are made and executed, all the taxpayer loans in the world won't make any real difference.

Another thing is that if GM screws up again with this money, or the market heads even more south, the road would be pretty grim looking.