Sad Truth of GM

[ltmax]

Longtime Chevy fan and Vette fanatic here. I've never harbored any illusion of the reality at GM, but for an observation of the current condition of GM top management, go to autoextremist.com for 3 July 13 explaining continued mismanagement as exemplified by the killing of the Cadillac Cien.

This really doesn't bode well for the Vette being all that it can be made to be, or for a dominating Chevy lineup in general. Where is the real Monte Carlo anyway... ;help

 

[catbert]

I sure don't have delusions about the historical performance of top GM execs, but that piece was one man's hatchet job. It ignored the realities of GM's "situation." They are just couple years from total corporate collapse. Does sinking a huge amount of cash in a really limited potential halo car make sense to anyone? How many $140,000 Caddys would they sell? Probably not enough to break even. GM's traditional Achilles heal has always been small car, and they have begun to turn that around. They have to continue to go forward in small cars to meet CAFE in the future. That is where they must invest at this point. IMO

Comparing Caddy to Audi is simply stupid. The Audi is part of the VW empire that is awash in cash. VW (Audi, Porsche etc, etc) is strong in both high end and small cars. Those expensive autobahn burners sell at big bucks, and are largely made in cheap labor Eastern Europe by Skoda, another VW brand. Imagine the margin on those cars.

So, long story short, GM still can't afford to take a flyer while they still aren't that close from trouble.

 

[warren s]

<!--[if gte mso 9]><xml> <o:OfficeDocumentSettings> <o:AllowPNG/> <o:TargetScreenSize>1024x768</o:TargetScreenSize> </o:OfficeDocumentSettings> </xml><![endif]--> What a waste of resources it would be to actually build a car like that halo Caddy (for production sales), Talk about Nero fiddling while Rome burned.

There are many bigger fish to fry in the GM world.

Example: Unless GM thinks there is a future in mail order cars, they need to spend some time on revamping and reevaluating their relationship with their pathetic product vendors, or as we unfortunately know them as "Dealers". And that's just the tip of the iceberg.

 

[ltmax]

I just wanted to get the reality of GM out there, that article is pretty caustic and to the point...which is exactly what is needed! If Ackerson is even half as inept as he says, GM will just wallow along to the next crash. I sure as hell hope not but after '09, you'd expect a sense of urgency throughout the entire org. They're doing a decent, not great, job with the smaller cars and slowly bringing desirability back to the rest (read RWD). It's obvious the VW group has got their sht together, not entirely, but mostly. That idiotic Porsche attempt at buying a controlling stake in VW 5 yrs ago was ludicrous and is still costing them a lot (enough that they can't afford to include a manual trans in the new 911GT3 ! ). GM simply can not afford any more lethargy, arrogance or ineptitude at the top. Shareholders should be a little more demanding of management quality along with product quality.
The C7 will say a lot though!

 

[killain]

Well, one article isn't a bible !

Just my $0.02, but I have to think your standing too close to the wall to read the printing on that wall. Right now, General Motors navigators are trying to lean the company itself down, but more importantly to establish itself in markets were they can compete on a fair playing field. That may not satisfy everyone, but they need to develop products that "Sell" and cement their bottom line in the black. They have succeeded in getting the stock price stable, not great but stable and new markets are opening up around the globe. Time will tell if they are on a forward pathway or not. I'm pretty optimistic about GM, so I bought their stock.

 

[67vet]

Mr. De Lorenzo points out that truck sales are the best money makers for the auto manufacturers.
Why is it that they all have stopped making small trucks like the S-10 and the Ranger.
They stopped making the Ranger at the end of 2011. What will companies that had fleets of them use when it is time to retire them? They will have to use larger more expensive trucks like the F 150. Greater profit for the manufacturer and higher fleet payments for the companies that use them.
What a deal.

 

[red and black]

Perhaps wrong, but I get the feeling that Caddy is trying to establish a presence in Europe like they did with the CTS-V and there was even an attempt to make an ill fated stab at the sporty sedan market with the BLS, a Cad built on the Saab 9-3 three line but badged (jokling called the Bob Lutz Special).

The problem is that the Euro's have a pathological hatred of US cars for the most part no matter how fast they are; no matter how good they handle. Aside from Opel I think GM was trying to establish a base for turning the tide and actually exporting cars. No matter it it's Chauvinism (of the patriotic sort), or a financial decision to keep the Euro's made in circulation close to home (which is a pretty good way of looking out for your children), it's going to be like banging your head against the wall ... it feels soooo good when you stop.

What adds to the sadness regarding the fate of Corvette if it hits the fan for GM, is that the C5's that I have owned have been the most reliable of cars in our family fleet. I sometimes wonder if the folks a Bowling produce a superior car despite GM? The last I bought under the extended warranty and never had to put anything but oil and tires out for it.