GM Wows China – But Still Fixing America

[Canuck]

http://www.thecarconnection.com/Car_...92.A12255.html

"Our goal isn't to survive another ten years and keep winnowing down," General Motors Chairman Rick Wagoner told TheCarConnection.com at an appearance at the Shanghai Motor Show, on Friday.

The CEO of the world's largest automaker said his top priority remains fixing GM's troubled North American core, reversing steady declines in sales, market share, and profits that have indeed forced the company to steadily whittle back both aspirations and production capacity.

But following the preview of a new Chinese concept car, the Buick Riviera, Wagoner also made it clear that growth outsideNorth America is critical to maintaining GM's narrowing sales lead in the competitive auto industry and its long-term viability. The question is whether GM's own Chinese ally may be gearing up to take on the giant U.S. maker.

[Realist]

The CEO of the world's largest automaker said his top priority remains fixing GM's troubled North American core, reversing steady declines in sales, market share, and profits that have indeed forced the company to steadily whittle back both aspirations and production capacity.

Sorry Wagoner, but it's time to walk the walk, not just talk the talk. If North America really is the #1 priority, then how about you stop investing so much into China, and bring over some of those great China market GM cars over here to North America.

[tgagneguam]

Originally Posted by Realist

Sorry Wagoner, but it's time to walk the walk, not just talk the talk. If North America really is the #1 priority, then how about you stop investing so much into China, and bring over some of those great China market GM cars over here to North America.

I understand what you're saying, Realist, but how 'bout they continue investing in both China and NA (and Europe and LAAM)? If GM can raise billions to pay off workers, close factories, fund pension obligations, invest in silly minority stakes in Fiat, then it should be able to use similar resources to find ways to fund new car programs, especially since some of what may save GM's NA operations already exists in other parts of the Kingdom. I think it'd be silly to squander its growing position in China by starving divisions there of new product. Isn't that how they ended up in such dire straits in North America? When times are good, you invest in product. When times are bad, you invest in product. There's really no alternative that makes sense to me.

[CBECK]

Originally Posted by Realist

Sorry Wagoner, but it's time to walk the walk, not just talk the talk. If North America really is the #1 priority, then how about you stop investing so much into China, and bring over some of those great China market GM cars over here to North America.

Didn't GM commit to investing tens of billions of dollars in product research?!

[Realist]

Originally Posted by tgagneguam

I understand what you're saying, Realist, but how 'bout they continue investing in both China and NA (and Europe and LAAM)? If GM can raise billions to pay off workers, close factories, fund pension obligations, invest in silly minority stakes in Fiat, then it should be able to use similar resources to find ways to fund new car programs, especially since some of what may save GM's NA operations already exists in other parts of the Kingdom. I think it'd be silly to squander its growing position in China by starving divisions there of new product. Isn't that how they ended up in such dire straits in North America? When times are good, you invest in product. When times are bad, you invest in product. There's really no alternative that makes sense to me.

Keep in mind, GM also shouldn't be narrow minded by only focusing on one market like China. GM should definitely continue investing in China, but they should put at least as much effort into the North American market as they are doing in China.

[Havasavana]

I don't think Wagoner has to worry about GM's surviving another ten years; at least with him around. I agree that he has to take a world view in all respects; investment and development/product sharing among those. What I DO NOT understand is GM's utter lack of interest in developing a world-class small and high mileage car. They surely have the engineers here or in Europe who could design the drivetrain for such a car and the manufacturing facilities somewhere (Korea?) to build it at profit. According a WSJ article yesterday: "It (GM) continues to face threats in the U.S.; yesterday it told United Auto Workers negotiators that it put plans to roll out the successor to the Chevrolet Cobalt in 2009 on hold, putting a question mark on part of its plan to tap the growing popularity of small cars in the U.S."

So if GM has any plans for a car to compete with the CONTINUALLY HOT SELLING AND PROFITABLE Civic and Corolla, such plans have not been divulged. Meanwhile, they seemingly continue to focus on the pickup/SUV/Hummer stuff with occasional fantasies about hydrogen and plugins somewhere off in the murky future. If hydrogen or batteries for plugins become feasible, there is NO reason to think GM will have an advantage relative to other manufacturers, and every reason to believe they will screw that up and come in last just as they have with cylinder shut off, > 4-speed transmissions, and other technologies. GM badly needs management at the top. If Wagoner/Lutz refuse to deal with the real world, they must be removed. The best that could happen IMO is for GM to start losing money soon. This might wake up the shareholders while there's still something to save.

[greenhornet]

Originally Posted by Canuck

http://www.thecarconnection.com/Car_...92.A12255.html

"Our goal isn't to survive another ten years and keep winnowing down," General Motors Chairman Rick Wagoner told TheCarConnection.com at an appearance at the Shanghai Motor Show, on Friday.

The CEO of the world's largest automaker said his top priority remains fixing GM's troubled North American core, reversing steady declines in sales, market share, and profits that have indeed forced the company to steadily whittle back both aspirations and production capacity.

But following the preview of a new Chinese concept car, the Buick Riviera, Wagoner also made it clear that growth outsideNorth America is critical to maintaining GM's narrowing sales lead in the competitive auto industry and its long-term viability. The question is whether GM's own Chinese ally may be gearing up to take on the giant U.S. maker.

Hey, why not screw the good old general. It's Pearl Harbor all over again. Ah well!