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Link: http://www.autonews.com/article/20080626/ANA02/601166759/1128

Wagoner says GM liquidity is adequate


June 26, 2008 - 12:30 pm ET

PITTSBURGH (Reuters) -- General Motors has adequate liquidity to carry it through the end of this year and has many options beyond that, CEO Rick Wagoner said on Thursday.

Investors and analysts have been concerned about the impact of collapsing sales for trucks and SUVs on GM's bottom line and its liquidity as it tries to restructure. At least two analysts have warned that GM could be forced to borrow heavily.

"As we've said before, we've got a very good, solid funding base under any scenario we see, solid through the end of this year," Wagoner told reporters after attending an economic summit with U.S. presidential candidate Barack Obama. "We have a lot of options to fund beyond that."
 

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Two weeks before deciding to close the Oshawa truck plant GM thought that they would need truck capacity at that plant in the future. I don't know how anyone can trust what he says... he should run for office. What if sales continue to drop until December?
 

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busy with Red Tag...oops, mean 72. Red Ink Rick belongs in prison, guilty of murdering America. later on another thread.

Buickman
 

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Dont worry buickman soon gm will offer red tag 84 months. How can anybody defended idiot rick. IF you let 10 year old run gm he would do a better job then rick.
What exactly would you be doing differently, if you were handed the CEO job today? If it's so easy, lay it all out.
 

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Dont worry buickman soon gm will offer red tag 84 months. How can anybody defended idiot rick. IF you let 10 year old run gm he would do a better job then rick.
Hey racist--Can't we just redtag your a$$ off this forum for good?

Oh wait --you'll just use member3...too smart
 

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Link: http://www.autonews.com/article/20080626/ANA02/601166759/1128

Wagoner says GM liquidity is adequate


June 26, 2008 - 12:30 pm ET

PITTSBURGH (Reuters) -- General Motors has adequate liquidity to carry it through the end of this year and has many options beyond that, CEO Rick Wagoner said on Thursday.

Investors and analysts have been concerned about the impact of collapsing sales for trucks and SUVs on GM's bottom line and its liquidity as it tries to restructure. At least two analysts have warned that GM could be forced to borrow heavily.

"As we've said before, we've got a very good, solid funding base under any scenario we see, solid through the end of this year," Wagoner told reporters after attending an economic summit with U.S. presidential candidate Barack Obama. "We have a lot of options to fund beyond that."
that depressing outlook should make the stock price shoot up... NOT!

good grief, I hope spending all that money on hybrid SUVs has paid off for you Rick and Co.

You should have put that development into your regular bread and butter cars. We've been saying that for years here, and now it appears you are finally ready to listen now that gas is going to stay at or near $4.
 

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What exactly would you be doing differently, if you were handed the CEO job today? If it's so easy, lay it all out.
If I were handed the CEO job I would just sit there and look out of the window... I honestly believe that a CEO that didn't make any decisions would be better then one that gets EVERY SINGLE ONE WRONG

Lets review... Rick was:
WRONG on Oldsmobile
WRONG on Delphi
WAY WRONG on Fiat
WRONG on SUV's and Trucks
WRONG on Killing the Camaro
WRONG on taking forever to bring it back
WRONG on thinking Hybrids were dumb
WRONG on starving Pontiac for product
WRONG on Hummer
WRONG on Product Marketing
WRONG on gas prices
and at least half WRONG on the GMAC deal

Honestly if we just put my 7 year old son in Rick's chair with a magic 8-ball he would be making better decisions.

What do you think that Rick is (has) done right?
 

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IT is very simple. I would change pontiac name to holden and let go pontiac managers that are in detroit and only let holden be in charge. Second change saturn name to opel. let go of all sturn managers and let only opel guy be in charge. That way you eliminate two devision with out paying dealers for it. Third sell saab and hummer so this way you do not have to waste resources on those two brands that do you no good. Fourth Chevy needs to get product updates first not last. They are your volume brand. Fifth sell caddy since gm can get some money for it but gm has proven that they can not manage caddy. File for chapter 11 close all factories that do not need to be open and when you are in chapter 11 you would not have to pay union guys for that. In chapter 11 you can get rid of job banks too. But most importat thing will be quality needs to be highest from aveo to corvette. Fuel economy needs to be class leading. And zero fleet sales like honda. Only then gm will be profitable.
I completely disagree with selling Caddy, I think GM has done an amazing job with them. Compare them with the job Ford had done with Lincoln. Other than that, everything else you list sounds like ideas worth looking into. But, I think we need to not be so OVER THE TOP in these posts. People need to learn how to debate without going so over the top....
 

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If I were handed the CEO job I would just sit there and look out of the window... I honestly believe that a CEO that didn't make any decisions would be better then one that gets EVERY SINGLE ONE WRONG

Lets review... Rick was:
WRONG on Oldsmobile
WRONG on Delphi
WAY WRONG on Fiat
WRONG on SUV's and Trucks
WRONG on Killing the Camaro
WRONG on taking forever to bring it back
WRONG on thinking Hybrids were dumb
WRONG on starving Pontiac for product
WRONG on Hummer
WRONG on Product Marketing
WRONG on gas prices
and at least half WRONG on the GMAC deal

Honestly if we just put my 7 year old son in Rick's chair with a magic 8-ball he would be making better decisions.

What do you think that Rick is (has) done right?
There are two things that trump most of those things:
1: offload the billions in retiree healthcare responsibilities on the union
2: enact the two-tier wage structure

Thanks for your response, though, but it didn't contribute anything to what should be going on at the top.
 

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Hey racist--Can't we just redtag your a$$ off this forum for good?

Oh wait --you'll just use member3...too smart
:D :D Beat me to it.

VCDJ - I'm sorry I mean member 1, I mean member 2 - is just a mindless moron who repeats whatever he hears on ToyotaNation without a clear thought or understanding of anything whatsoever related to cars or the industry itself. I may disagree with Buickman on a lot of things but at least he's informed, puts serious thought into his points, and of course spells and uses grammar properly.

Back to the article - kind of scary. I think GM would have been fine if gas prices has continued to go up at the same rate they did over the last 3 years or so as they could have phased products out easier and less expensively. However with a 25% rise in just 3-4 months it seems one of the last few nails has just been used. If GM can avoid bankruptcy know I will be well impressed.
 

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IT is very simple. I would change pontiac name to holden and let go pontiac managers that are in detroit and only let holden be in charge. Second change saturn name to opel. let go of all sturn managers and let only opel guy be in charge. That way you eliminate two devision with out paying dealers for it. Third sell saab and hummer so this way you do not have to waste resources on those two brands that do you no good. Fourth Chevy needs to get product updates first not last. They are your volume brand. Fifth sell caddy since gm can get some money for it but gm has proven that they can not manage caddy. File for chapter 11 close all factories that do not need to be open and when you are in chapter 11 you would not have to pay union guys for that. In chapter 11 you can get rid of job banks too. But most importat thing will be quality needs to be highest from aveo to corvette. Fuel economy needs to be class leading. And zero fleet sales like honda. Only then gm will be profitable.
On your first and second points, renaming Pontiac and Saturn doesn't eliminate two divisions, it just renames them to something that will need billions in advertising to get the same recognition.

Numbers three and four I agree on. Hummer persists the stigma that GM is a gas-guzzler company.

Selling Caddy is the second worst idea ever. No company can survive without a flagship luxury brand for buyers to aspire to.

Filing for Chap. 11 is the worst idea ever. Talk about completely ruining your credit. The company is already cash-strapped and you want to make them more-so? Ask Delphi how Chap. 11 is working out. You can't automatically void your obligations.

Quality is a moot point. Everybody is about the same nowadays.

Honda does have fleet sales. There are more Accords in fleets than there are AURAs.

Aside from raising some cash by selling SAAB, HUMMER, and Cadillac, you've effectively bankrupted the company and continued down the same rut. I thought you had a plan? :confused:
 

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:D :D Beat me to it.

VCDJ, I'm sorry member 1, I mean member 2
You forgot that old favorite: ABCD12
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The statement from Wagoner is needed to help reassure the markets. Even if a company is not in trouble, the rumor mill can be strong enough at the moment that a rumor becomes truth as everyone bails out of the stock and it gets downgraded etc etc and suddenly the cost of borrowing money gets too high or creditors get nervous and demand start demanding payments etc.

Even if everyone stops buy trucks & suvs tomorrow there is no way GM will go out of business, simply because the demand for cars would be so strong that no manufacturer could supply the demand. Prices would go up on the demand either through actual price increases or removal of all incentives and even the haters of the Big 3 will have to go shop there as you would reach a point where there was no available stock elsewhere.

Also, aren't a whole lot of the buyouts taking effect in the next week or so? Reduction in labor costs is coming at a good time.
 

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Realistically, GM probably won't go bankrupt (or out of business) soon. Chrysler will go first, and that will provide a "dead cat bounce" to GM and Ford in that once the Dodge Ram et al stops being made, those buyers will have to go somewhere, and a fair number of them will buy GM and Ford products. But that will be a temporarily reprieve at best. It's what they do with that second chance that will determine if it survives.
 

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If I were handed the CEO job I would just sit there and look out of the window... I honestly believe that a CEO that didn't make any decisions would be better then one that gets EVERY SINGLE ONE WRONG
Lets review... Rick was:
WRONG on Oldsmobile
Was absolutely already dead.
WRONG on Delphi
Possibly wrong on Delphi, however the spinoff of Delphi had been put in motion way before Rick Wagoner was but in charge of GM. Furthermore, it could have worked had the economy not begun deteriorating.
WAY WRONG on Fiat
Your way wrong on Fiat. The Fiat deal was crucial to GM getting its hands on the diesel technology it needed to stay competitive in Europe and for small diesel engines which would start making their way to this side of the Atlantic. Opel wouldn't be in the good position it is today without competent diesel engines and those came from the Fiat deal.
WRONG on SUV's and Trucks
That decision was made before people had even started dreaming of gasoline exceeding $2. Furthermore, GM needed to reguvinate sales of its cash cows (SUVs/Pickups) to subsidize the investment into GM's car products (see Impala, new Malibu, forthcoming Cobalt and Volt).
WRONG on Killing the Camaro
The F-Body was dead anyways. It couldn't meet the new safety requirements, not to mention that the last generation Camaro/Firebird was a bloated, overweight and poorly assembled.
WRONG on taking forever to bring it back
First they are wrong for investing in gas guzzles, and now they should be condemned for taking their time and building an actual business case and engineering the Camaro to survive a high fuel price environment? You can't have it both ways.
WRONG on thinking Hybrids were dumb
This is one area where GM's beancounting mentality came to bite it in the ass. GM did an analysis of the cost savings of a hybrid powertrain versus conventional power for compact cars (as the Prius is a compact), and you wouldn't have saved enough in gas (even with it at $4 a gallon) to recoup the extra upfront costs for almost a decade. Hybrids still don't make much sense economically, but having the products would have helped GM combat its image problem.
WRONG on starving Pontiac for product
This started way before Rick Wagoner took control of GM or GMNA. I put the blame for this squarely at Ron Zarrella and Roger Smith's doorsteps. They spent money on the most pointless of things (like automated assembly where the robots painted each other instead of the cars) instead of investing it in product. Since Bob Lutz and Rick Wagoner took control of GM we have had the GTO, the Solstice and the G8, which is more product differentiation than Pontiac has enjoyed in at least two decades.
WRONG on Hummer
I have never been a huge fan of Hummer. I always thought it was nothing but a PR nightmare for GM but the numbers don't lie. When gas was cheaper, Hummer was nothing but a money printing press for GM. The H3 rides on the same platform as the Colorado, sometimes sold almost as many units with nearly twice the average transaction price. Instant goldmine but it doesn't work with gas at $4 a gallon.
WRONG on Product Marketing
GM has been sorely lacking in this area most definitely, although the new Malibu ad campaign has given me hope that GM might have finally figured it out.
WRONG on gas prices
So was everyone else. In an industry with product lead times of at LEAST 5 years, there was no one in 2003 who foresaw gas prices at $4 a gallon. The fact that Ford and GM have been able to react so quickly to this crisis (new Focus, upcoming Cobalt, new Corsa, new Beat, new Aveo) is somewhat amazing.
and at least half WRONG on the GMAC deal
If GM hadn't ditched the half of GMAC it did (and got a ton of money out of it, I might add) we'd be looking at GM in bankruptcy. It was a smart move at the time that looks even smarter now with the mortgage meltdown that currently in progress.

But what else has GM done right? The new UAW/CAW contracts for one which have removed a tremendous liability from the company's balance sheets and freed up cash flow for product investment.
 

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This is really sad. I hope GM can say at this time next year that it has enough liquidity to last to the end of next year. The problem with Rick Wagoner is the buck stops at him. everyone else (workers and shareholders) have taken the hit and he just had his pay restored.
 

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Doom and Gloom is the order of the day lately. I can't believe Rick even needed to make such a statement. It's quite obvious they are good for the rest of the year atleast and a company with the potential of GM will always have a lot of options to raise more cash.

What boggles me is why people are so are annoyed with Rick and Bob Lutz?? I really think they are doing well with what they have to work with. We can all say we could do better or a kid could do better, but the problem is that hindsight is always 20/20. But even then most here aren't even in aggreement at all on what was done right and what was done wrong. Many think the Oldsmobile kill was smart, but just as many think it cost more than it helped, for example. Really I think Rick and Bob would be doing just fine if they had unlimited resources to turn the place around. They basically walked into what was the most impossible automotive executive jobs ever offered to two executives and have been able to make every true auto enthusiast in the world pay attention to them again for the first time in nearly 30 years! Wait until the NG Cobalt replacement cars hit! They will probably be first GM small cars EVER to get the same sorta acclaim cars like the Honda Civic and Ford Focus have always got. Opel small cars have always done OK in Europe, but from what I know have never been as highly regarded as the Focus there or Civic elsewere in the world.
 

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Discussion Starter · #20 ·
There are two things that trump most of those things:
1: offload the billions in retiree healthcare responsibilities on the union
2: enact the two-tier wage structure

Thanks for your response, though, but it didn't contribute anything to what should be going on at the top.
Amazing how no one was complaining two years ago when there was a six month wait for the new (GMT900) Escalade which depending on how it was optioned, provided a 10 to 15K profit to GM on each turn.
 
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