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Deepening gloom at General Motors
As the auto giant grows sicker, its chances for a full recovery get dimmer.

By Alex Taylor III, senior editor
Last Updated: June 19, 2008: 10:05 AM EDT

NEW YORK (Fortune) -- The news coming out of Detroit is getting worse, and unlike in past years, there will be no full recovery. Analysts are betting that General Motors will be forced to take emergency financial measures this year that could hamper its competitiveness for a long time to come.

Full Article:

http://money.cnn.com/2008/06/19/news/companies/taylor_gm.fortune/?postversion=2008061909
 

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This is the type of thinking that has driven GM to the brink.
So something like this:
But a lot stems from the poor running of the day-to-day automotive business. Every time that gasoline prices have spiked, GM has gotten burned, and its Japanese competitors have out-maneuvered it at every turn: first into small cars, then to crossover vehicles, and now with hybrids and other fuel-saving technologies.
Has driven GM to the brink?

I don't see any other company with a sparkplugless engine. I don't see any other company with a system as complex as eFlex. I don't see any other company working on several different types of fueling methods for the future and allowing their cars to work on them. I also do not see how the Japanese have better cross-overs than the Lambdas or the Vue. Sure have a nick at GM for the bad stuff, but at least give them credit where they deserve it.
 

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You can tell this was written by an import lover. Not a great article in my opinion.

Alex Taylor has been one of the most consistent and ardent supporters of GM for many, many years. this is common knowledge. when he turns critical and starts pointing blame at "bad decision making" and "poor running of the day to day business", there is no where for Red Ink Rick to run and hide.
 

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So something like this:

Has driven GM to the brink?

I don't see any other company with a sparkplugless engine. I don't see any other company with a system as complex as eFlex. I don't see any other company working on several different types of fueling methods for the future and allowing their cars to work on them. I also do not see how the Japanese have better cross-overs than the Lambdas or the Vue. Sure have a nick at GM for the bad stuff, but at least give them credit where they deserve it.
Does GM have any of those things available right now? No... None of these things will available until the coming years. Toyota has a full line up of hybrids that are selling like hotcakes, and I hate it. We have to be real here, some heads need to roll in Detroit.
 

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Lambda is large.
VUE is extremely heavy.
GM isn't marketing its sparkplugless engine in the US.
EFlex is 18 months out.

GM is still too dependent on full sized SUVs and Trucks.
GM doesn't have a truly competitive compact car. It's still 1-2 years out.
GM doesn't have a subcompact car other than Aveo.

GM's efficiency initiatives are still 1-3 years out.
What does GM have now?

While the article is a little "the sky is falling," let's just say there's a lot of grey clouds gathering.
 

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I would say Ford is in better shape than GM right now. It may be hard to see it but Mullaley is kicking tail. He is getting the Fiesta here quickly followed by the other Euro spec Fords-the Kuga, Focus, and who knows, maybe the Mondeo?
GM is a slug. Not to mention their cars are still using faulty parts, such as the steering issues that STILL have not been addressed even though GM knew about it for 4 years and up. Faulty steering columns and intermediate shafts. I'm shocked there hasnt been a class action lawsuit already.
 

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GM is reactive, not proactive, it's a company which will die suddenly! Since the early 1970's when the oil embargo caused all the beginning of problems, all auto manufacturers should have cancelled their alliances with the Oil Industry. At that time they should have created 3 types of vehicles: Fuel effcient, Luxury, and Utility vehicles, constant upgrades would have made them all lighter more efficient and market ready.

The GM board was static, and drained the company of resources, now they can't do anything, the spiral down is out of control. The Chairman, and Co-chairman should resign.
 

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I don't know if GM is going to escape this one. Even with a good economy their recovery plan was uncertain. Now it's unlikely at best.

These are some really dark days we're living through. Of all the years I could have graduated college...
 

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In response to redimpss5...

Hmm..let's see. They just recently recalled over 2 million GM SUVs for potential fire hazards. More at this link... http://www.autospies.com/news/NHTSA-investigating-GM-trucks-and-SUVs-for-engine-fires-31264/

May want to check your facts:)
Talking about facts, read the article again - it is not a recall - yet. An investigation is under way.
Maybe there is a common component that is fitted to all these vehicles that failed? Maybe it is a coincidence? The big numbers is because GM sells a lot of these vehicles. The same thing happens when Toyota has a Camry recall (which they have had) because they sell so many of the things.
 

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Sometimes I start to think GM could use a new ceo like at ford. Someone who can give it a bit more of a push, at the moment gm reminds me of a ping pong ball, it seems to be chopping and chaning all the time, and doesn't have a real focus. Why they still have saab I don't know, that should be sold as well.
 

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A lot of people here are drinking the koolade. The Domestic car companies are in a lot of trouble and have been for awhile. I have never bought a foreign car so i am supporter of domestic nameplates. However, they have no one to blame but themselves (and to some part american citizens who do not support there own people). This all started in the mid 70's when quality of domestic cars were poor. It continued threw the 80's with crappy cars and crappy interiors and crappy materials. There have been some high points threw the 90's but not much improvment. And now the rest of the world is having a field day selling cars to our people. you all could sit here and blame the unions, but if we were building the right vehicles we would not be in this situation. It comes down to accountability and the (former) big three have none to speak of. I expect toyota to be number 1 in this country very soon. Honda could be number 3. Chrysler could go out of business. its a new world.
 

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Sometimes I start to think GM could use a new ceo like at ford. Someone who can give it a bit more of a push, at the moment gm reminds me of a ping pong ball, it seems to be chopping and chaning all the time, and doesn't have a real focus. Why they still have saab I don't know, that should be sold as well.
A outsider could be interesting but we have to be careful to chose the right guy. Ford hits the target with Mullaly while Chrysler is less lucky with Nardelli.

Maybe, I think it's time for Frederick "Fritz" Henderson to step him as CEO.

Edit: Even if I hate the idea but I feel resigned,.......Carlos Ghosn!
 

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There are huge numbers of Americans that wont consider an American branded car, period. Those same people dont have the same view of American branded SUVs. Since Suvs are on the way down the Big 3 are paying a heavy price. GM's products are better than ever but many people do not care. When will people on this site get it? What Rick or Lutz or anyone else does is largely irrelevant to many buyers. These folks have been raised on the idea of complete superiority of Japanese product and they will not be changining anytime soon. Once the Big 3 fold or become a shadow of their current form everyone is going to blame anyone but the American public. They have improved quality, styling, handling, interior design, plant efficiency, warranty protection, etc. and we have people here saying they have basically done nothing and have ceded the car market to the Asians. Thats BS and anyone who believes it is a moron. Americans dont want American cars and that is the hard reality. I hope Wagoner and Lutz do get fired so some of you people can see it wont make a damn bit of difference. If GM was run by the Toyota family it wouldnt make any difference. The only way for GM to avoid further erosion is to be absorbed by a foreign competitor that will give its products credibility.
 

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GM is a gigantic monolith, it's way too big and expensive to run for anyone to buy it, outside of a Bankruptcy firesale. It's also beyond, fixing, there is no investment money available...It should probably file chapter 11.
 

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GM is a gigantic monolith, it's way too big and expensive to run for anyone to buy it, outside of a Bankruptcy firesale. It's also beyond, fixing, there is no investment money available...It should probably file chapter 11.
$5.1 billion is all it would take to make an tender offer for 51% of the stock @ $18 per share, and give the buyer effective control of the company.

This is a very feasible scenario at this time, and the matter is being discussed by at least one bank...
 
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