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http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008106_769033.htm

Just three months ago, General Motors (GM) Chairman and CEO Rick Wagoner said he was moving to secure $15 billion in cash through asset sales, borrowing, and cost cuts that would see the company through to 2009 even in the worst of times.

Barely three months later, with its stock trading at a 54-year low, GM is looking for more ways to save cash. The grim market conditions that underpinned its liquidity plan weren't downbeat enough, it turns out. Several sources inside the company say GM is looking at product delays to save cash, hoping the company can weather the weak economy and liquidity crisis and make it through to 2010.

All but essential programs are at least getting a review, the sources said. Even the next-generation Chevrolet Malibu could be on the table. GM wants each of its cars to get a makeover every 5½ years, but it may have to stretch that to 7½ years for some models to stay in the black. A GM spokesman says the company is delaying some product programs but that nothing major has been held up yet.

The war gaming around cash savings shows just how tough times have become for Detroit's Big Three. On Monday, Oct. 6, GM's shares fell 52¢, or nearly 6%, to 8.48, its lowest price since 1954, according to Bloomberg Financial Markets. Ford Motor (F) stock fell 36¢, or 9%, to 3.69, its lowest since 1984. GM, Ford, and Chrysler have had their credit ratings downgraded as they burn cash and sales plummet. Last month, every major automaker—except GM, which had a big slug of sales to rental fleets and a fire sale—saw sales drop at least 20% (BusinessWeek.com, 10/1/08). Some dropped 30%. With revenue sinking fast, Detroit's carmakers are trying to save every penny.

New Products Intact
GM executives and product planners say nothing is final and that they could reinstate some plans if the market turns around. But the company is still taking a hard look at what can be delayed as the company's shortfall in sales and revenue burns cash.

Sources inside the company say that all new products planned for 2009 and 2010 (BusinessWeek.com, 6/3/08) are intact, because most of the development money has been spent. But there could be a lull in new-vehicle launches in 2011 and 2012 if GM has to delay more plans.

That means GM would have some stale products just as the market is expected to turn around. But as a survival plan, it could work. GM would conserve cash now to make it through the recession and credit crunch. Around 2011 and 2012, when wage cuts and a big health-care deal with the auto workers union are expected to save GM several billion dollars a year, the company would have more money to market its cars while getting the product plan back on track, says James Hall, principal of 2953 Analytics, a Detroit consulting firm.

"By 2011, the union deal starts to pay off and hopefully, the market gets better," Hall says. "GM has cars people want to buy."
 

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Times are awful and getting worse, but I am really pulling for GM to make it through to the other side. There is no playbook for what is happening right now, so now is the time for the guys with the big pay grades to prove what they are worth and keep the ship afloat.
 

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wow...time to buy some Ford and GM stock!
I swear to God, people on this site have been saying that for the last year and a half.
 

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Ah yes, the days when a models hangs in there for 10 years+ are not over, in fact, they'll remain. New GM= old GM.
 

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I hate to bring up this discussion again, but it seems really likely GM is going to have to consolidate business. Either divisions are going to be shut or model lines will need to be reduced.

IMO, it seems better to offer fewer models that will remain fresh then having the products become stale. 7 1/2 years between makeovers seems awfully long.
 

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Not a good situation. I think their financial situation will improve a lot over the next 5 years. The new UAW contract should help a lot, the market will improve, they will have better vehicles to deal with high gas prices, etc. I think there was a large wave of people hired back after WWII that are starting to pass away as well. As sad as that is it does have an impact on GM's finances. Lets hope GM can struggle through this mess.

I really hate to see important vehicles like the Malibu be considered for a delay. As nice as it is now it won't be competitive 5 years from now and will need to be replaced sooner rather than later. I'd much rather see cars like the DTS/STS delayed or other low volume vehicles.
 

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Well i have no hope for gm. If they decided to keep their models for 7+ years and toyota, honda and nissan replace their every 4 to 5 years. How can they stay competitive. This is just old gm. Keep uncompetitive models and offer big rebates and hope that people will buy them. This has never worked. Are they that stupid. Look at market share of gm for the past 20 years? This is crazy. Some things never changer.
 

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With GM closing all production facilities in Europe, I would say it doesn't look great for GM. From information released last quarter GM said it was making money on Global Sales, is Europe not part of it's Gobal strategy?

On the other hand FORD, is still soldiering on: Introducing vehicles to sell, with varying levels of success. As long as sales are being made, there is hope.
 

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I really hate to see important vehicles like the Malibu be considered for a delay. As nice as it is now it won't be competitive 5 years from now and will need to be replaced sooner rather than later. I'd much rather see cars like the DTS/STS delayed or other low volume vehicles.[/QUOTE]

You are correct. Most important vehicle will get delayed. Finally gm has competive mid size car and they will kill it by delaying new one. IT will just be another fleet king. Rick and lutz must go if this company is to survive. GM needs to put hummer, saab and holden for sale. and kill pontiac ass soon as possible. Change saturn name to opel. Saturn does not have good reputation. Delay all low volume cars. that is what they need to do in order to survive.
 

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I really hate to see important vehicles like the Malibu be considered for a delay. As nice as it is now it won't be competitive 5 years from now and will need to be replaced sooner rather than later. I'd much rather see cars like the DTS/STS delayed or other low volume vehicles.
Boki: What you have pointed out is the difference between a Reactive (GM) company and a Proactive (MB, Honda, BMW) company. BTW, the DTS was not a low-volume vehicle (it was in fact the best selling Luxury car over $40K), what has been a recent slow down has occurred because GM has kept an old design, much past it's life span. The STS, was a design error, that was never addressed and is selling below it's capabilities, it is in fact an excellent driving automobile, with a lack luster interior (I own one). Both of these issues, can be attributed to GM poor management strategy, and the resultant--shrinking budget.

:drive:
 

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I really hate to see important vehicles like the Malibu be considered for a delay. As nice as it is now it won't be competitive 5 years from now and will need to be replaced sooner rather than later. I'd much rather see cars like the DTS/STS delayed or other low volume vehicles.
You are correct. Most important vehicle will get delayed. Finally gm has competive mid size car and they will kill it by delaying new one. IT will just be another fleet king. Rick and lutz must go if this company is to survive. GM needs to put hummer, saab and holden for sale. and kill pontiac ass soon as possible. Change saturn name to opel. Saturn does not have good reputation. Delay all low volume cars. that is what they need to do in order to survive.
why should they sell Holden?
 

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Being reactive rather than proactive is in a large part what has got GM into this mess. We can debate who got them in this mess but to be fair to GM management, they are now likely at a point where there really aren't many options to consider givern their restrictive cash position. Survivial appears to be the order of the day, not product development for 2012.
 

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NO instead, GM should listen to the R-tards in GMI.

WHAT WE NEED BOB...
Is ANOTHER RWD, 6 SPEED, PUSH ROD 8 liter V8 car. WHY OH WHY BOB DON'T YOU MAKE ONE!

Whine-whine-whine, bitch-bitch-bitch, moan and complain.

What GM really needed to spend their money on is a time machine to find out whats going to happen in the future, instead of importing another $38K holden.

I think in the next 5 years, we're going to see 3 brands at most that ='s GM.
Saab will be sold after it wrecked their heritidge, we're going to start seeing only a couple of dealers, and what will happen is, you'll see a Pontiac modle, not a brand.

Like the Pontiac Such and such, with Chevy being the staple brand. You might see the Chevy Hummer.

It's going to happen, then we'll start to see a huge turn around for GM. BTW I don't want to see any of this happen, I like all the brands as they are individual, I just wish there was more money to go around. I wish Pontiac had the money to turbo the 3.6 and make that into their sports car that would rival the vette... but no money.
 

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You are correct. Most important vehicle will get delayed. Finally gm has competive mid size car and they will kill it by delaying new one. IT will just be another fleet king. Rick and lutz must go if this company is to survive. GM needs to put hummer, saab and holden for sale. and kill pontiac ass soon as possible. Change saturn name to opel. Saturn does not have good reputation. Delay all low volume cars. that is what they need to do in order to survive.
I'd argue Cruze and Volt are GM's most important vehicles. Why would GM kill Pontiac? It has a high sales volume and a loyal fanbase. Pontiac outsells Saturn by a significant margin. If anything Pontiac should get a mix of rebadged Holdens and Opels and Saturn should just cease to exist. Contrary to GMI belief Pontiac's vehicles still have a sporty appeal. A friend's girl friend chose a Pontiac G6 I4 over a Malibu, Aura, Camry and Altima because of the appearance and liking it better in the test drive. Holden is a good asset for GM to have as well. To sell Holden is to abandon RWD and the Australian market, there's just no reason to do it. I agree that Hummer should go and I'm not sure about Saab. I don't know enough about their worldwide performance to know if they're worth it for GM. If anything they'd need to make sure to keep Saab's powertrain engineers, I believe the LNF came from Saab expertise as did the Ecotec in general.

My dream for Pontiac. It preserves Pontiac muscle image with the Trans Am as the Halo car for the brand. Pontiac still gets the Commodore but with the proper Bonneville name, in addition they also get an Alpha vehicle (I always liked the Tempest name so it should come back). The Astra would make a fantastic Vibe and the Insignia would make a good GrandAm/G6. The compact Cruze is needed in Pontiac's lineup but GM does need to differentiate it with a firmer ride, sticker tires, and far more aggressive styling.
Pontiac Solstice = as is
Pontiac Firebird = reskinned Camaro V6
Pontiac Trans Am = reskinned Camaro SS (I'd forget all about the Challenger for a new Trans Am)
Pontiac Bonneville = reskinned Holden Commodore
Pontiac Tempest = Alpha RWD vehicle
Pontiac Grand Am = reskinned Opel Insignia
Pontiac Sunfire? (hate the name, but its better than G5) = reskinned Chevy Cruze with a firmer suspension and more aggressive styling. Offer a convertible for Pontiac as well.
Pontiac Vibe = reskinned Opel Astra
 

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Because Bokl hates GM and wants to see it sold off piece-meal.

Pay attention! :D
NO it is not because Boki hates gm. It is because if gm keeps doing what is doing it will go out of business. IT is clear that gm can not manage all of these brands. That is why they should have 4 brands and make them class leading that way they will increase market share and profit. But this way. GM has one good car for caddilac (cts) one good car for pontiac (g8) one good car for chevy ( malibu). Maybe you hate gm and maybe you should be part of gm management you would fit right in. You would even get pay raise every month.
 
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