Interesting read, here's a synopsis:

GM is on the move
GM finished '02 with an operating profit of $3.9 billion, nearly double what it earned in '01, on 5% higher sales of $186.2 billion. Much of this came about from efficiency improvements.
"It's a testament to Wagner's ability to cut costs that GM managed nearly to double margins in North Amerca last year, to 2.6 % of sales. Thanks to efficiency gains, GM is now one of the leanest car builders, with variable costs -labor,parts,outsourced production, etc.- amounting to 62% of revenues. That puts it ahead of Ford and Chrysler at 68%, and it isn't far behind leaders Toyota and Honda at 60%."

Serious debt
GM's problem is its "gargantuan" pension payments (~$1.4 billion/yr). "Providing for retirees saddles each car rolling off a GM assembly line with a $1350 penalty vs. a Japanese car built in a new, nonunion U.S. plant." Healthcare costs for former and current workers, ~5 billion/yr, add to GM's fixed cost base. Additionally, as someone mentioned on this board before, GM has to pay furloughed workers about 70% of their salary for years after they're laid off. All in all, these costs have the general between a rock and a hard place.

Fight or fight
"Those huge legacy costs explain why Wagoner has kept the heat on his competition with the 0% financing deals he unleashed after September 11, 2001. Closing plants and accepting a smaller chunk of the U.S. market -the route his rival,Ford, has taken- would give GM fewer vehicles over which to spread those big pension and healthcare costs." The legacy costs are projected to decrease around 2008. "That makes Wagoner's imperative clear: He has to keep up cash flow to cover the costs until they start to shrink. At the same time, he must continue to rack up improvements in quality, efficiency, design, and brand appeal." "Wagoner ,..., seems content to rely on Lutz and his team to fix the lineup."

The Lutz factor
"Lutz, Cowger, Hogan, and the others decide what goes from the design studios into the funnel of cars that will be considered for funding by GM's Automotive Strategy Board, chaired monthly by Wagoner." The old design-by-commitee system (division design studio -> marketing -> engineering -> manufacturing) is out the door. "Lutz has one committee to cover the entire process." This has cut the time it takes to develope a car from 4 years to 20 mo. By the time a program manager sits down to build a car, 75% of the engineering work is finished.

In F-body language
My take:
GM can't spare the cash to build a new F-body right now. They've squeezed every drop from the efficiency turnip and can't risk funds on cars that might not sell. Things will look better fiscally by '08, more product development funds by then. The good news is a 5th-gen can go from concept to showroom in about two years. It all boils down to when it makes it thru the Automotive Strategy Board.
Aside:
I read this line in the article and felt like hitting my 'puter.
On the GTOs ressurection:
"For years, Pontiac and Chevrolet wanted a brawny car with RWD, which is favored by driving enthusiasts"

 

So after 35 great years the automotive press forgets after a few months time.

 

well he did say brawny.....nt fast as hell...with those qualities..

That the Camar oand Firebird were at there demise.."brawny"..thats a GTO..IMO

 

This reminds me of a thread from what? 6 months or so ago where a lot of people continued to say that a new car would take at least 4 years or more from start to finish...



I still stand on my ground that it can be half that, and according to this I was wrong... it's even less!

 

If the economy turns up a new camaro could be built in 22 months.

 

I can easily believe that.

 

Then the only thing that would be left if finnishing up the legalities of the previous car.

 

That only thing that would be left or the only this that is left???

The more and more I think about this, the more and more I think there could be a Camaro that is almost "in the bag" if they were working on a replacement at any point over the last 5-6 years ... .. . . . . maybe I am reaching....

 

Speaking of "the Rick" and Lutz...
HERE is the latest thoughts of Peter M. DeLorenzo on things.

Some snibbits for you...
" "The Rick" and the boys and girls down at "The Tubes" got an early Valentine's Day present with the debut this week of the Business Week cover story about his leadership and the current state of GM... Though thorough, the article was heavily skewed to talking about all the good stuff going on at the moment, while glossing over a few things - like the fact that two years ago "The Rick" touted how much money GM would be making by now with telematics and OnStar, but that he's given up on the idea and now we're all supposed to forget about it. "

" It was also revealed in the aforementioned Business Week article that even "Maximum Bob" Lutz was subjected to "The Rick's" tough, 12-point performance standards regimen. The article mentioned that Lutz was judged by things like "...how well he used existing parts to save money in new vehicles to how many engineering hours he cut from the development process." "
How many times have we said Lutz can't do it all alone?

" "The Rick" came out swinging at the National Automobile Dealers Association convention last weekend in San Francisco. Clearly peeved with his critics and with the brickbats being constantly tossed his way by other car company executives over GM's aggressive incentive marketing strategy... "
Yeah, we covered that in here too...

There are some good points and some bad, I just thought these would strike close to home since we've discussed them recently.

Not ANY good news for Ford BTW.
" Things are not going well for Ford specialty cars, it seems. Thunderbird sales have cooled dramatically, and the Mercury Marauder has become almost a non-event, with a $3,000 rebate or zero-percent financing available after having sold only 2,910 vehicles from July to December of last year. "

I enjoy this site, and the guys are usually very factual and unbiased. Enjoy...

 

I don't know how the phrase it....

Eeven if GM had the development money to make a new car...there are issues involving the old car that will not allow a new one to happen after a specific date...

 

I can't wait for the book to come out with all the inside BS that went on with the demise of the F-body and the rise of it again.

 

Since I've been comming to this site, it's also been posted that a Camaro would happen IF car fuel standards wern't increased, then it became IF a Republican won the White House, then IF Republicans gained in Congress, then last year IF SUV fuel standards wern't increased. What's next? ' Camaro may return IF France comes around & agrees to open more McDonalds on the Riviera? How about IF Brazil allows more logging to permit the building of more canoes, Camaro may return?

If Camaro's going to return, it's going to return regardless as to what the economy is going to be. Especially since GM is making record profits in a recession, and especially since GM is set to produce cars that are far riskier in a recession than Camaro!

You mean to tell me if the economy turns up today, it will also be up in 2 years when Camaro returns? Is anyone on this site that gullible? The only way it will be out in 22 months is if it's approved today, and if approved, do you think if the economy slows down in a year, GM, after investing that much money to set up everything, will walk away from it without attempting to recoup it's expenses? Come on! I know it's late in the week, but snap out of it!

Anytime anyone posts an "IF something happens, then Camaro may come back" story, I get the overwhelming urge to grab a baseball bat, and go looking for the person who said it.

(Disclaimer: Just joking, about the baseball bat. No, I didn't have my morning coffee yet. )

 

Ya, I believe I have a grasp of a few of those issues.

I'm just saying that I think there is a chance that there is a car that is close to being done and has been worked on for quite sometime...

It could basically be sitting there at the starting line, waiting for the starter to shoot his flare gun...

 

Ya, let me correct my post above when I say could 'definately see that happening' or whatever I said, I meat that I think a new Camaro (or any car for that matter) can be done in a 22 months range... baring outside politics like we have with Camaro and Firebird...

The "Economy turns up" part really didn't have too much weight with me...

 

Wait...

There are issues involving hte old car that will now allow the new one to happen AFTER a specific date? Or BEFORE a specific date?