Someone Has to Say It.

[Swahili]

Thanks, But No Thanks.
Editorial by Swahili
www.gminsidenews.com


“GM’s going under!” they told me.

“Nissan’s going to buy GM, that’s huge!” they said.

Over the last couple years, friends of mine realized the affinity I have for General Motors and often ask what I think about their situation, given the news about Toyota fighting to take over number one spot in the world as the largest auto manufacturer.

“Give them a year or two.” I told them.

Since then, GM has rolled out products like the Pontiac Solstice, Saturn Sky (recently named the most searched car on the net), Chevy HHR, the GMT900 SUVs (and soon to follow pickup trucks). GM is making massive steps to improve their products and getting back to basics: building vehicles that people want to buy. Though lower volume production cars, the Solstice and Sky roadsters spend much less time on dealer lots than the industry average. Heck, dealer mark up of almost 20% proves that each are in high demand and if you didn't put your name on the waiting list, chances are you’re waiting until next year to get your own.

Recently, here at GMI we’ve all seen the flood of news articles about the proposed ‘alliance’ between Nissan-Renault and General Motors, largely influenced by billionaire investor Kerkorian. Carlos Ghosn is said to be interested in buying a large stake of General Motors shares. I for one, am not happy with this proposition.

Given GM’s record over the last couple years, they’ve proven that with the right focus and allocation of resources in styling and engineering, they can produce some of the hottest, most unique vehicles on the market. To GM’s fault, they’ve also shown that they’re not 100% consistent in terms of spreading this creativity out over the entire span of the company in all divisions. This means there is still a lot of work to be done. But make no mistake, GM is not resting on its laurels, they can’t afford to and they know it.

I truly believe the powers that be are working aggressively to bring out the best products they can, and thus, I really feel that the General is perfectly capable of pulling out of the financial tailspin and moving forward to profitability on their own two feet. Let’s be honest, is an alliance with Nissan going to solve all of the problems for General Motors? Not likely. GM has the platforms and engines, or close to finishing up most recent developments. GM is lacking in 5 and 6 speed transmissions in their mainstream passenger cars but are Nissan units in GM vehicles going to make mass numbers of the public flock to GM’s dealerships? Not necessarily. I stand thinking that Nissan has more to benefit from the proposed alliance than the other way around.

GM can make it through on their own, it’s a question of time. Well General Motors, the time is now. And to be blunt, I leave you with this: I would rather see General Motors stand alone and make a gargantuan effort to reclaim it’s undisputed title as number one in the world and fail, than to ally with Nissan-Renault and get sucked dry by arrogant investors with too much time and money on their hands trying to make a buck.

[dmaxpwr]

couldnt have said it better myself!

[plane]

Well written.
GM is tremendously undervalued.
Nissan stands far more to gain.
Sucked dry would be about the right term.
Shareholders, even the ever-popular Kirkorian stand to gain far less long-term value by selling out now.
And if they successfully take down GM, Ford likely won't be far behind.
This is an incredibly serious situation.

[SilverZ]

Another amazing editorial. Its almost like this stuff should be printed and sold for top dollar.

[ScottS]

The problem is GM supporters are constantly saying, be patient for a couple more years. Then they roll out a couple of hits to get interest up, but then they turn around and come out with a lot of duds and mediocrity at the same time.

[steverino]

Good stuff, concise & to the point. Most of all makes sense

[56 Starchief]

good point. GM is undervalued for all the assets they have; these assets are just tarnished but when restored will be hard to beat.

I'd rather see GM have 10% market share and completely independent than be swallowed and have vehicles that are completely unamerican.

[mkaresh]

I'd also rather GM remain independent, but like others here this largely an emotional feeling, and that has little play when you have a publicly traded company.

That said, Ghosn is right about one thing, the R-N alliance hasn't resulted in one company being swallowed up by the other, unlike DCX. The Versa is the first Nissan we've received that has a significant Renault influence, and it's at the bottom of the range.

R-N would probably be better than Toyota taking a stake in GM. I've been suspecting for 5-6 years now that GM's senior management hoped to trim the company and get it in good enough shape to pull an Eaton and sell out to Toyota. GM would be on much more equal footing with R-N than with Toyota.

[ZvetteGuy]

I too wish to see the General get back in the ball game without any help from Nissan/Renault and give them all the credit... "GM couldn't have pulled it off without the Alliance with N/R...." or, better yet... "GM rallies help to keep up with the Almighty Toyota Motor Company"...

GO GM!!!

[LAMRONH]

Amen. What I hear you saying is GM can stand or fail on its own. If this "Renault Alliance" happens, GM will not stand on its own, and it will be destroyed from within by termite-infestations like Khosn, Kirkovorkian, and Kyork.
Sucked dry, and with no cigarette afterwards.

[Karlog]

ABSOLUTELY!!!!!!! I was just wondering why the media hasn't jumped on the import bashing wagon with all of the recalls that Toyota & Nissan are coming out with?

Oh wait, I forgot. That isn't what they get paid to say!
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[SUPERBADD75]

right on, Swahili. R/N doesn't really have just a whole lot to offer GM other than perhaps a 5 speed transmission. i'd rather see GM do it alone and come out the other side stronger than before. R/N would merely be a crutch. i've trash talked Ricky boy, but he's really not doing a terrible job cinsidering the mess he's got to work with, and once all is said and done the company will be much better for it all. "F" Renault.

[Greg Burr]

Ghosn and Kerkorian have a hidden agenda -- to have all the Saturn Skys to themselves.

[camaro_freak]

Originally Posted by Swahili

Since then, GM has rolled out products like the Pontiac Solstice, Saturn Sky (recently named the most searched car on the net), Chevy HHR, the GMT900 SUVs (and soon to follow pickup trucks). GM is making massive steps to improve their products and getting back to basics: building vehicles that people want to buy. Though lower volume production cars, the Solstice and Sky roadsters spend much less time on dealer lots than the industry average. Heck, dealer mark up of almost 20% proves that each are in high demand and if you didn't put your name on the waiting list, chances are you’re waiting until next year to get your own.

none of the vehicles mentioned here will save GM alone. They need a big push in the midsize and full size car department if they hope to stay alive. Small production and large SUVs/trucks won't save GM.

[killerrd2]

Spot on brother!