GM denies any more brands under review
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GM denies any more brands under review
From Automotive news- http://www.autonews.com/article/2008...524119774/1078
GM denies any more brands under review
Automotive News
July 7, 2008 - 1:15 am ET
UPDATED: 0/07/08 12:33 p.m. EDT
DETROIT -- A General Motors spokesman today denied the automaker is reviewing any more brands besides Hummer for possible sale.
The Wall Street Journal, citing people familiar with the matter, reported today that GM could shed thousands of white-collar jobs and sell or cease producing certain brands as part of a strategy reevaluation.
The job cuts are likely to be approved when GM's board of directors meets in early August. The reduction would be in addition to earlier announced cuts. The management may also suggest options for raising additional cash to help GM make it through the downturn, and may discuss cutting certain brands, the sources said.
Both moves are part of a broader re-evaluation of GM's strategy and of its ability to meet an internal projection of returning to profitability in 2010, these people said.
GM denied the report.
"No other GM brand (besides Hummmer) is under strategic review, GM spokesman Tony Cervone said in an e-mail to Automotive News today.
GM's sales chief Mark LaNeve, made similar comments to journalists last week.GM sells under eight different brands, but most, including Buick, Saturn and Saab, struggle to attract buyers. The company has already decided to put its Hummer division up for sale and prospective buyers are thought to include Mahindra & Mahindra.
On the job cuts, GM employs 76,000 white-collar workers globally, with the bulk of the force based in North America, said the report.
All but Cadillac and Chevrolet, which GM considers core to its business, are undergoing close scrutiny, other people said.
In the past few years, as GM has run up massive losses, some board members and some executives have on occasion raised questions about its plethora of brands, only to be rebuffed by CEO Rick Wagoner, the paper said.
The company, hit by rising oil and raw material prices, the credit crunch and the housing downturn, will need to raise as much as $15 billion (9.6 billion euros) in cash to shore up liquidity and bankruptcy is "not impossible" if the U.S. auto market continues to slump, Merrill Lynch said last week.
Thomson Financial and Reuters contributed to this report
GM denies any more brands under review
Automotive News
July 7, 2008 - 1:15 am ET
UPDATED: 0/07/08 12:33 p.m. EDT
DETROIT -- A General Motors spokesman today denied the automaker is reviewing any more brands besides Hummer for possible sale.
The Wall Street Journal, citing people familiar with the matter, reported today that GM could shed thousands of white-collar jobs and sell or cease producing certain brands as part of a strategy reevaluation.
The job cuts are likely to be approved when GM's board of directors meets in early August. The reduction would be in addition to earlier announced cuts. The management may also suggest options for raising additional cash to help GM make it through the downturn, and may discuss cutting certain brands, the sources said.
Both moves are part of a broader re-evaluation of GM's strategy and of its ability to meet an internal projection of returning to profitability in 2010, these people said.
GM denied the report.
"No other GM brand (besides Hummmer) is under strategic review, GM spokesman Tony Cervone said in an e-mail to Automotive News today.
GM's sales chief Mark LaNeve, made similar comments to journalists last week.GM sells under eight different brands, but most, including Buick, Saturn and Saab, struggle to attract buyers. The company has already decided to put its Hummer division up for sale and prospective buyers are thought to include Mahindra & Mahindra.
On the job cuts, GM employs 76,000 white-collar workers globally, with the bulk of the force based in North America, said the report.
All but Cadillac and Chevrolet, which GM considers core to its business, are undergoing close scrutiny, other people said.
In the past few years, as GM has run up massive losses, some board members and some executives have on occasion raised questions about its plethora of brands, only to be rebuffed by CEO Rick Wagoner, the paper said.
The company, hit by rising oil and raw material prices, the credit crunch and the housing downturn, will need to raise as much as $15 billion (9.6 billion euros) in cash to shore up liquidity and bankruptcy is "not impossible" if the U.S. auto market continues to slump, Merrill Lynch said last week.
Thomson Financial and Reuters contributed to this report
Thread Starter
Registered User
Joined: Jan 2002
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From: Van Nuys, Ca.
Personally, I don't believe in "changing something just to change something". If its a real solution then go ahead and do it. But at this point there are only two things we know about shuttering a division from the Oldsmobile experience-
1. It costs BILLIONS
2. It kills market share-you don't keep those orphaned customers.
1. It costs BILLIONS
2. It kills market share-you don't keep those orphaned customers.
Last edited by Hoodshaker; Jul 8, 2008 at 12:24 AM.
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Posts: 3,647
From: Winnipeg, Manitoba, Canada
http://www.mahindra.com/
Cool, an Indian company looking to buy Hummer.
Anyone who thinks SUVs are on the way out needs to check this company out. I've ridden in one of their SUVs in India. Basically a Jeep YJ type interior but great fuel economy.
Cool, an Indian company looking to buy Hummer.
Anyone who thinks SUVs are on the way out needs to check this company out. I've ridden in one of their SUVs in India. Basically a Jeep YJ type interior but great fuel economy.
Last edited by Gripenfelter; Jul 7, 2008 at 04:23 PM.
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Joined: Jan 2000
Posts: 10,285
From: Albany, NY
GMC = low cost cash cow
Pontiac = make them the US Holden, keep the Vibe and add a unique delta coupe.
Saturn = Opel
Buick = Chinese Buicks
Saab = sell it
Hummer = sell it
As gasoline prices continue to go up and the dollar goes down you can expect what Americans drive and what Asians/Europeans drive to get more similar.
Pontiac = make them the US Holden, keep the Vibe and add a unique delta coupe.
Saturn = Opel
Buick = Chinese Buicks
Saab = sell it
Hummer = sell it
As gasoline prices continue to go up and the dollar goes down you can expect what Americans drive and what Asians/Europeans drive to get more similar.
Registered User
Joined: Mar 2005
Posts: 757
GMC = low cost cash cow
Pontiac = make them the US Holden, keep the Vibe and add a unique delta coupe.
Saturn = Opel
Buick = Chinese Buicks
Saab = sell it
Hummer = sell it
As gasoline prices continue to go up and the dollar goes down you can expect what Americans drive and what Asians/Europeans drive to get more similar.
Pontiac = make them the US Holden, keep the Vibe and add a unique delta coupe.
Saturn = Opel
Buick = Chinese Buicks
Saab = sell it
Hummer = sell it
As gasoline prices continue to go up and the dollar goes down you can expect what Americans drive and what Asians/Europeans drive to get more similar.
Registered User
Joined: Nov 2000
Posts: 16,176
From: Chicagoland IL
You are exactly right. The 4 cylinder, turbo know-how which Saab brought to the GM table alone, was almost worth the price of admission.
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Joined: Oct 2006
Posts: 976
From: SE MI
WTF are they going to say? We're going to kill Buick? If not sold, the next brand to leave GM will be very quiet as GM will refuse to invest more money into future products to keep dealer lawsuits at a minimum.
Registered User
Joined: Mar 2005
Posts: 757
LOL, exactly what I was thinking. GM's flak isn't going to come out and say, "Hey guess what! We're panicking and thinking about closing some of our brands!"
Registered User
Joined: Aug 2001
Posts: 2,400
From: Michigan's left coast
Registered User
Joined: Jun 2001
Posts: 4,600
From: Pewee Valley, KY
GMC = low cost cash cow
Pontiac = make them the US Holden, keep the Vibe and add a unique delta coupe.
Saturn = Opel
Buick = Chinese Buicks
Saab = sell it
Hummer = sell it
As gasoline prices continue to go up and the dollar goes down you can expect what Americans drive and what Asians/Europeans drive to get more similar.
Pontiac = make them the US Holden, keep the Vibe and add a unique delta coupe.
Saturn = Opel
Buick = Chinese Buicks
Saab = sell it
Hummer = sell it
As gasoline prices continue to go up and the dollar goes down you can expect what Americans drive and what Asians/Europeans drive to get more similar.
Registered User
Joined: Sep 2001
Posts: 2,030
From: Frankfort, KY U.S.A.
If GM closes down Hummer, I can see big problems with dealers. Look at how many dealers spent a ton of money and built very big stand-alone Hummer dealerships with off road tracks test tracks, etc.
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Joined: Apr 2000
Posts: 2,224
From: CNY
Saw a news bit on either CNN or MSNBC this morning that had a little graphic that showed how much each division contributed to GMs bottom line.
Chevy, Cadillac, Pontiac, and GMC were GM's best performers in this respect.
Hummer, Buick, Saturn, and Saab were the bottom four.
I think Saab only contributes like 0.5% of GM's revenue or profit.
Chevy, Cadillac, Pontiac, and GMC were GM's best performers in this respect.
Hummer, Buick, Saturn, and Saab were the bottom four.
I think Saab only contributes like 0.5% of GM's revenue or profit.
