Doom And Gloom: A Big Al Rant

[BigAls87Z28]

Doom and Gloom: A Big Al Rant
by BigAls87Z28
www.gminsidenews.com


It is that time again, that time where the media has a field day with the fact that General Motors, the largest auto maker in the world, could go up in smoke. Before June sales numbers were released, there were predictions that GM would be 24-30% off of last year, some serious numbers! That on top of the fact that GM only makes SUV's and trucks which are not being purchased due to the fact that oil prices are through the roof, that GM must be in some sort of trouble! I mean, they lost 34 billion dollars last year!

GM could go bankrupt and total fall apart as Toyota rises to be King of the Autoworld! This is just the gist of what I am watching and reading from many main stream media sources. Oh how I loved the fact that everyone had Toyota ahead of GM and that is was going happen; it was in the bag because GM does not make a single car, only trucks. Any cars that they do make, they are made from tin foil and rubber bands that have V8's in them that drink gas more so then the trucks.

No way could GM have had a better sales month then Toyota, the maker of the world-saving Prius and Yaris. But in fact, GM did do better. Not that either of them did well, no one thought that GM could have pulled it out. Which brings me to my point, even though GM is #1, its #99 in the minds of the world? Its the underdog, the one that does not have a chance.

This same mentality applies to its vehicles. No way could GM make a hybrid system that could be better then Toyota, right? No way can GM make fuel efficient vehicles without using hybrid technology because GM does not know how. The fact that GM has some of the most fuel efficient cars on the market now still does not penetrate the minds of those who still believe that GM has not changed since the 1970's. No one seems to be picking up on it, or no one wants to believe it. I watched CNN, and they were shocked to find out that GM did better than Toyota, the maker of "such economical cars like the Prius and Yaris" to have such a down month?

It did not enter their mind to bring up the fact that Toyota just launched a brand new full sized truck and a full sized 8 passenger SUV that is powered by a 370hp V8 engine that drinks gas. Nor did CNN bring up the fact that Lexus, home of the Luxury Hybrid, also has a variant of this fuel hog SUV. Nope, they picked out the fact that GM did well even though they rely on their SUV sales, while Toyota's Green cars did not do as well. People are ready to put GM in the coffin well before the results are in. I guess high gas prices only effect American car companies, not foreign.

Another little thing that got me going was the press splurge all over the FCX Clarity from another Green-Team, Honda. Now while Honda does not possess the same blood thirsty desire to be #1 like Toyota, when they released their hydrogen car, it was too much fanfare and awe as if no other company has been working on hydrogen vehicles for decades. Press coverage of the cars was vast and deep, talking about how Honda is changing the world with its gas-free vehicles!!

An amazing feat, but something that GM has been doing for a few months now with a fleet three times the size of the Clarity in three cities in the US. GM's fleet of Hydrogen Equinox's did not draw nearly the same attention or news coverage as the FCX did. Why is that? I have yet to find a good reason why, but it bothers me greatly. Is it because the FCX is a unique car while the Nox is a restyled version of gas powered models? Or is it just the fact that it’s another anti-GM thing. Now I hate to sound like a tin-foil hat wearing conspiracy theorist, but you got to wonder why GM did not get the coverage that Honda got?

Let us not forget the downplaying of GM's biggest car since its incorporation in 1908. The one car that has drawn a lot of press, the one car that every one’s eyes are on. No, I’m not talking about the Camaro...yet....but the other Bowtie, the Chevy Volt. Now, I have heard just about every single thing that has come against this. Even other car makers are coming out against this car. The battery packs seem to be the main focus of the attention. That, and the price of the car. During the press days at the New York International Auto Show, Tahoe and yours truly were there for the big press question session in where hybrid nuts and members of the press could ask questions to Bob Lutz and several of the Volt's engineers.

They talked about battery packs as if that was not the problem. They said that they had to stop development on the battery packs because they kept coming up with new ideas, new technology, and it was holding back the rest of the development of the car. They talked about second, third and even fourth generation E-Flex cars and the types of technology that is out there TODAY to make it happen. There is a massive shift towards this, as lithium ion batteries become a major part of regular and mild hybrid systems. But this still does not stop the press and media from trashing the car saying that the battery technology will not work, that it’s not going to happen, that there will be problems. Let us also not forget that this will be a Chevy.

Somehow Chevy equals cheap and only for poor people, but perhaps that is how this is all linked together. Some people think that having a Chevy badge on a car of this magnitude, a car that will be a game changer for vehicles of the future, will not wear a wreath and crest, will not have tri-shields, no professional grade, and no arrow heads or planets. It will wear one of the biggest icons in the world, the Chevrolet Bow Tie. And that would not be all that bad, but when you bring up the price, there is an instant "IT WONT SELL!" that tends to be screamed out. The rumored price of the Chevy Volt will be around $40,000. This is a rumor, based on some more spouting from the mouth of Bob Lutz, as pricing has not been determined. But even with this rumor, the flop word is already being used.

I could not help but go back to the movie "Who Killed the Electric Car" and recalled several people on there saying that people wanted this car, an all electric car. Well now that gas prices are through the roof, GM has developed a car that gives you electric power but three to four times the range of the EV1, and you do not have to keep it plugged in to a wall all the time! I guess that at $40k, people might change their tune. Do not forget the government rebates that could come with this car, and that is only with the current administration’s approval. Imagine if the next administration were to increase it, or even doubled it to American made hybrid vehicles?

What a fantastic way to show your patriotism as well as help boost the American economy while reducing fuel consumption by giving $10,000 in rebates to someone who purchases a Volt. That 40k car is now 30k! For the US Government not to invest into this technology, this innovative thinking that is going during the doom and gloom GM era, would that not help strengthen our economic and technological power here in the US? Could it be possible that like it was in 1941 when the government asked for GM, Ford, Chrysler and other auto makers to band together and produce weapons and tools for the war afford, that when GM is in need that the government could lend a hand, helping build confidence in both GM and the US? Working together, toward the future, is not that always a tag line for some political commercial?

Is GM dead in the water? I do not think so. GM like everyone else is going through tough times. The economy as a whole is crumbling but it is not done yet. Like the people of this country, GM has not yet given up on the future. Through all this, they are making better and better vehicles; cars that will help improve and advance the state of the automobile into the future. It is going to need time, and that might not be something that GM has, but this economy will soon shape up. It always has. A change is coming in the White House with either candidate bringing new ideas, or at least they say so, to help rebuild this country. GM has not given up hope, and they will continue to produce better and better vehicles for the future.

Thank for reading my rant.

Big Al

[Ed Arcuri]

What Big Al said.
Cheers,
Ed

[dindak]

Picking on GM while ignoring the numerous problems hitting other auto makers seems to be a national pastime for the U.S. media. I will never understand it.

I bought 1000 shares of GM stock yesterday at $10.18. I know I will make money because this is all way overdone.

[EldoFan]

GM is definitely improving.....but they're nowhere near as nimble as they need to be (others can elaborate here). Brand mis-management, lack of focus and plain lack of effort in certain areas are just a few of the main problems that still exist IMO.

A big question that exists in my mind is whether they can keep improving at this snail's pace if gas prices continue to go up?

((BTW Red Ink Rick......quit whining like a little **** to the politicos. Japan may play dirty.....but that in and of itself is a political problem. You just need to keep up the effort.....and if you try hard enough, you can pull yourself up by your bootstraps))

[windvale]

Originally Posted by dindak

I bought 1000 shares of GM stock yesterday at $10.18. I know I will make money because this is all way overdone.

My brother had a lot of K-Mart stock. When K-Mart started hitting the skids a few years ago, he held on to his stock. As the price tumbled lower and lower...he held.

About 4 years ago K-Mart disavowed the stock and reissued new stock. My brother lost his entire investment.

Good Luck old boy...

[BigAls87Z28]

Yeah, well anyone that has Sears stock and held on to it, after the Kmart/Sears merger, stock went as high as 190 dollars a share, up from 30-40 bucks a share.
HUGE money...

[Ming]

There are two types of GM critics in this Doom and Gloom environment.

- Those who are harsh towards GM for getting things wrong, who want them to get it right -- myself, Buickman, etc.

- And those who never liked GM to begin with and want to see a big American corporation fall.

Then of course there are those non-critics or "fanboys" who refuse to criticize GM regardless of the decisions they make, loyal deckhands as the ship goes down, unwilling to question the Captain until they swallow the seawater, saluting the bow tie 'til the end.

I'm obviously not one of the latter, and it may sometimes seem like I "pile on" GM, but there is always a goal: putting a bug in GM management's collective ear, and maybe getting them to consider things like minicars, as I did back in 2005, years before we heard about the Beat concept possibly making it here.

I like to think that my griping with a purpose might actually have some impact, somewhere, with some middle manager or design guy at GM who surfs the internet during his time off.

I had a rant back in 2006 titled " Rallying to GM's Side in Dark Times: What can we do? "

In it, I listed 7 ways in which we, as GM fans, can support GM in times like this, and I think they are all still relevant now.

[windvale]

Originally Posted by BigAls87Z28

Yeah, well anyone that has Sears stock and held on to it, after the Kmart/Sears merger, stock went as high as 190 dollars a share, up from 30-40 bucks a share.
HUGE money...

Sounds good...wouldn't it be wondeful if GM stock did the same. We can hope.

[doppleganger]

Right on the money Big Al. I'm so sick of these so called 'news reports' on GM's demise. They always start the same way.......''GM, the worlds largest automaker who made their money selling gas guzzling SUVs and trucks''......makes me want to pitch my remote into the tv screen! Then they proceed to roll the file footage of GM's trucks and SUVs while they talk about high fuel prices, and then when they talk about fuel efficient vehicles, they flash a Honda (never a gas-guzzling Ridgeline or Pilot though) or a Toyota (never a Tundra or Sequoia); biased and lazy journalism at its worst.

Hey Today Show, GM sells cars too, HELLO!!!! Most of them get great or better gas mileage compared to their competitors; yes even the JAPANESE ones!! Oh and The Japanese sell gas-guzzling trucks and SUVs too (gasp)!!

Once in a while do a piece on that mentions how the ENTIRE auto industry is suffering due to rising fuel costs, and that consumers and MOST manufacturers are shifting to smaller, more fuel efficient vehicles. And for goodness sakes use a damn Cobalt XFE or talk about the Volt for a change instead of Corolla and Prius...Geez.

[Ambalanche]

Al, I understand what you're saying. The media is the same wheather you're talking about the automobile business or politics. They have thier bias' and their agenda. What you have to understand, and I may get flamed for this, is that as a whole, the media is run by a bunch of self loathing anti-American people that do not believe America should be a super-power, much less have the number 1 automotive company in the world! The media want's to see GM fail just as I truely believe some of them want to see America fail. Or if not fail, not be the world's leader anymore.
Just last night, even after GM had released a statement saying no other brands were up for review, Fox news still had it in thier news updates that GM was considering selling or shutting more of their brands. It actually was kinda funny because the bubble headed bleach blond talking-head spouted out all these GM brands but excluded Chevrolet even though she was not talking about the brands "under review" but rather every brand GM has.
The media don't do their homework anymore, but the average consumer doesn't demand it anymore either. Who's the blame here?

[Sal Collaziano]

I do wish to see GM succeed.. I'm a harsh critic but ultimately, I'd like to see GM do well..

[2002z7d]

Al,
Amen! You said what we all have been thinking. My kid sister has been main lining Toyota Kool-Aid her entire life and she has an instant case of cognitive dissonance anytime I demonstrate to her how GM meets or exceeds Toyota in almost every category. Sorry for the psycho babble term, but that's exactly what it is. Cognitive dissonance=brain and ears shut down when one's belief system is challenged. The media and the Kool Aid drinkers in the office can't believe that GM technology is better than Toyota. That GM makes trucks, SUV's and cars with segment leading fuel economy. That Toyota (not GM) recalled more vehicles for defects last year than they sold in the United States. So, they put on their blinders while Toyota's PR minions stroke their egos and GM/Detroit gets blamed for global warming (or climate change or whatever the eggheads are calling it this week) while Toyota gets a pass.
Where's GM's PR counter-offensive? GM has a tremendous story to tell and it's just not getting out there. Brother Al, I feel your frustration. Keep the faith,

[GMC-70]

In today's paper there was an article about the sale of GM's Hummer along with a big picture of H3's lined up at the dealer lot. On the same page was an article praising Toyota for incorporating solar panels on the next gen Prius.

Now to the casual observer it once again reinforces the misbelief that GM is the maker of all things that suck gas down like there is no tommorow and Toyota is of course the savior by bringing to the market all things green.

I am a GM fan, and I will address their mistakes accordingly. But in the case of the mainstream media it becomes so blantly obvious that they would like nothing better then to see GM (along with the rest of Detroit) fall to their knees.

The question is why? Why does the media do this---there must be reasons behind it, but I as an American can not understand why the American media is so against GM???
The only media source that acknolwdges GM's accomplishments is Fox news---and even then it's only once in a while. What gives

I would tend to think that perceptions along with sales would increase if the media were to give GM a break and once in a while praise their fuel-saving efforts along with the acknoledgement that for the most part their cars are of equal or better quality then many rivals. But much of the mainstream media will have no part of it.Therefore, GM could have the best cars in the world but if the sheep following the herd keep hearing GM bad--Toyota good (in simplistic terms) then it doesn't matter does it?

[Rocket 88]

Originally Posted by Ambalanche

The media has their bias' and their agenda. As a whole, the media is run by a bunch of self loathing anti-American people that do not believe America should be a super-power, much less have the number 1 automotive company in the world! The media want's to see GM fail just as I truely believe some of them want to see America fail. Or if not fail, not be the world's leader anymore.

Fox news still had it in thier news updates that GM was considering selling or shutting more of their brands. It actually was kinda funny because the bubble headed bleach blond talking-head spouted out all these GM brands but excluded Chevrolet even though she was not talking about the brands "under review" but rather every brand GM has.

The media don't do their homework anymore, but the average consumer doesn't demand it anymore either. Who's the blame here?

Your nuts. Fox News clearly states it is FAIR AND BALANCED!

OK, I'm kidding. I think Fox News is a joke also..... (although IMO, I don't think they are anti-american or want to see the USA or GM fail. There is some bias in all news channels and they all have a bit of slant but I do not believe its a conspiracy or anything of that nature.)


That said, Al's Rant was a Rant. There some good points and some truth in it and there are some things that seemed a bit over-reactive. i.e. Honda did nothing wrong by creating fanfare on their Hydrogen vehicle launch. Honda has a very good enviornmental record and doesn't need to mention that other folks are working on Hydrogen as well. I never heard Bob Lutz mention that Honda was wonderful for bringing early Hybrids to market or for producing so many Partial Zero Emission Vehicles.

[TriShield]

GM's problems are not the fault of the media or it's critics, that's hilarious.

GM's situation and all of their problems they are all created themselves and are the result of the groups of completely inept management GM has had for decades now.

What started as a slow slide accelerated over the years and the people in charge of GM have failed to take decisive action to correct it and they've finally arrived at the inevitable.

GM did not take it's foreign competition seriously, they failed to understand what each of their brands really stand for and what made them big in the first place, they failed to invest resources in their entire range of vehicles to make them properly engineering, high quality and competitive, they failed to restructure the company to reflect it's marketshare, etc.

Pretty much everything that you could do wrong in the automotive business GM has done at one time or another.