Once upon a time in America, General Motors symbolized success. Social status was measured in the climb from a Chevy to a Pontiac to an Oldsmobile to a Buick to a Cadillac. Towns arose around an auto factory, where a worker could achieve a middle-class lifestyle with good benefits and a secure retirement.
The world's No.1 automaker, and it's detroit rivals, seemed invincible, and they acted like it. Over the years, they ignored market signals and innovative competitors. They rested on thier laurels, and now the country will pay the price.
Hoping to stem $2 billion in losses so far this year, General Motors said that it would cut jobs. Likewise, Ford plans a major restructuring in January, including job cuts.
The dominos will be many: ancillary jobs at auto supply plants and in host towns, effects on trade as imports sales rise. What's bad for Detroit auto industry is bad for America.
So far, GM's solution is not dazzling Wall Street. Financial analysts don't foresee a company so lacking in vision and so burdened by rising health care costs cutting it's way back to prosperity. While Asian automakers have diversified thier fleets and introduced new technology, Gm has repeatedly relied on sales gimmicks such as this years "employee discounts". Although such incentives clear lots of unsold cars and trucks, they eat into profits, weaken brands, and mask a deeper sales slump.

GM's comeback strategy centers on the same old big pickups and SUV's which have plummeted in popularity with the volatility in gas prices. Sales for SUV's were down 16 percent for the first 9 months of this year, compared to last year. While big truck sales may rebound as gas prices drop, many analysts predict a permenant shift to smaller SUV's and "crossovers". GM is weak in this sector. The situation is similar to the oil price spikes of the 1970's , when Japanese automakers grabbed market share with better quality and fuel-efficiency.

US automakers are ill equiped to respond quickly to these changing consumer preferences, Although Ford has crossovers and GM does plan to introduce new crossovers in 2007. It still a few years later then there Asian counter parts. Historically, they've resisted new technology and safety improvements, even seat belts and air bags. Only recently has GM stopped deriding the gas electric hybrids, which has been so succeeful for Toyota.

The US economy relies on a healthy automotive sector. Detroit needs to get it in gear!

 

I've said it before, and I'll say it again: it's only a matter of time before GM merges with one of the larger Japanese manufacturers. Number one potential candidate: Toyota. GM already has been building cars with them since the mid-80's (Chevy Nova, Prizm).

 

and I've said it before, and I'll say it again- won't happen. Toyota has no interest, Honda's not big enough. Ford maybe? (don't laugh)

 

I actually wouldn't be surprised if GM dropped Saturn or spun off Hummer on their own, and started selling cars under the Holden name. They always seem to be looking for a new brand name to destroy.

 

Maybe they could buy Jaguar from Ford? I mean really- might as well go down in a blaze of glory.

 

I thought going out in a blaze of glory would be trying to buy Fiat again.

 

I just had visions of a merger.....

 

hmmm ford buying gm. imagine if you will a vortec powered f150 (barf) or a powerstroke in an h2

 

I have this theory- and it's just that, mind you- that Waggoner's positioning GM for... other options. If I were watching closely for clues, I'd pay particular attention to GMAC and how it gets spun off. Specifically, who does the deal (eg Goldman Sachs does all of Ford's stuff), who winds up with the equity, and what the terms are. I'd be especially interested if a holding company made up of a consortium of players were involved.

BTW- what would be so bad about a Vortec-powered F150?

 

Ford actually did a surprising job at turning Jag around. They are actually a reliable decent car now, and back to looking proper.

 

Yep, that they did. Unfortunately, it's still Ford's black hole as it relates to cash.

 

Ok, let me start by saying I like old Pontiacs, meaning when Pontiac was not a Chevy in different trim. (1978 and earlier). BUT--- I am the very unhappy owner of 3 "pontiac" vehicles. I own a 91 sunbird, 91 Grand am, and a 2001 Grand am. They have all given more than their share of grief with rediculous repair needs, from head gaskets (4 total) to junk fuel pump on the 01 with less than 30k miles, to steel power steering lines that split where there was absolutely no corrosion or stress from the outside. The bodies on the 2 91's are rotted horribly. I am sick of the constant repair bills, and tired of pulling out my 78 F-150 because I have no choice, not because I want too. Don't get me wrong, I love my truck, but don't want to have to drive it back and forth to work every day. I can't afford to. Anyway, I hate it for all the GM employees who will lose their good paying jobs, and all the others who depend on that business to make their living. With that said, GM can go get bent, I was never going to buy another one anyway. They are garbage! Ford will get my money.

 

When I think about it, Windows systems(95,98,2000, XP, yada yada etc) and GM cars seem to need servicing pretty regularly. Anyone else think Bill Gates will buy GM so he play around with OnStar's GPS ability to lead his "smart car" to his "smart house" and integrate such features as phoning your car in the garage to start it up to run the heater on cold mornings? (who wants another key fob-remote starter-in their pockets when a cell phone could do the work for you)

 

Hmmm! If Ford merged with Fiat.

FIRT. Fix It Right Tony.

 

wouldn't that be a good thing...

rr617, anything older than '78-'79 is better no matter which brand it is. that was when real cars were made.