It sounds like they are both positioning themselves for the merger/takeover/dismantalling.

I can't wait until my 6-year-old gets to start paying for the GM/Chrysler bailout.

 

The problem is...trying to replace lost SUV sales by making great cars does not work for GM. No matter how great the Malibu or Cruze is...GM will have to sell 5 of them to make the same money they do off one Tahoe. It is really a downward spiral.

Is GM making money on the Cobalt...if so..it is the first small car they ever made money on.

 

I read they now are profitable with the new labor agreement. Not the first small gm car to make money though-the Fiero turned a profit all five years it was produced.

 

I suspect you're making an apples and oranges comparison between the old rentacar Malibu and a SUV that doesn't have $8Gs sitting on the hood.

Everyone agrees that the Malibu was a home run, but there's really only so much that can be done in one product cycle.

 

I know this sounds sarcastic: (but here goes.....)

Wow -- glad you told us this...........we had no idea....................................


Have you read ANY newspapers lately?

You DO realize this industry is in meltdown mode, right? (Including foreign makes...)

The economy has taken a hit like nothing we've seen in decades........

...........people are NOT buying new vehicles --

...........People are shocked when they go and look at their 401Ks.........


..................the real estate market is in incredible turbulence........


.............look -- it's about CASH..........and what it's going to take to keep Ford and GM and Chrysler in business.........and it is NOT about mergers.........

IT's about NOT going chapter 11 -- even though that would be the 'easy' way out.......

It's about conserving cash now so that there IS a future............

 

QFT. Stop with the fearmongering, people. GM is getting smart and doing what they have to do to make it through this crisis without filing chapter 11.

 

I can understand conserving cash...but it is all about striking a balance. If conserving cash causes the products to be outdated and loose more sales footing than they naturally would in a declining market your just shotting yourself in the foot.

 

Okay, first post here, but I need to point something out. The Cruze is NOT delayed. GM denied that within a few hours of the article being posted. The US launch date is still on as planned.

 

If you run out of cash -- you are done.

Period.

Finished.

 

The US launch is and has been 2 years away. Was the overseas model delayed? That is the important question.

 

The Cruze is already going to be getting here much later than it needs to be getting here. Delaying the cruze is a terrible thing regardless of whether it was factually necessary.

Delaying/canceling the redesign of the GMT-900 platform was an obviously good move for a company focused on 'right here and now' and focusing on greener cars, but I don't understand the delay of the Cruze at all.

 

A good analogy is...if you don't continue to spend money on the amount of food you need to be a productive person and survive, you eventually starve to death anyway. Another negative is when the market does get better, or someone gives GM money..they will be stuck with a dated product line that will take even more time to fix.

The whole market taking a crap is a shame because GM really is building their best cars ever.