GM needs some help!

http://money.cnn.com/index.html?cnn=yes

And before anyone calls me a GM basher, my dad worked as a mechanic there for 16 years so I grew up with Chevy in my blood. But the recent news is sad.

 

all domestic automakers need some help, especially gm and ford! so much for trucks keeping you afloat.

 

Yea Gm dealers are not doing so well anymore

 

GM will return to profit by Q3 '06 i'm predicting. The new car lineup is phenominal and prices have been lowered across the board. Once the healthcare costs get analyzed and the union FINALLY agrees to some sort of concessions we'll see a turn around.

 

It'll take longer than that to convince import buyers that it's OK to try a domestic again. They didn't lost consumer confidence overnight, and they won't get it back overnight either. I do agree that GM's new cars are very good, and compete well with imports. But by the same token, people who were previously soured on GM and went over to Toyota/Honda/etc. have no incentive to go back and (in their mind) take a risk on GM again. It'll take several years of sterling praise from the media and public to get domestics back on the shopping list for people like that.

 

I agree, but lower prices definitely wont hurt. I'm already trying to convince the GF to ditch the Volvo idea in favor of a new Tahoe

 

Hehehehe... My fiancee has basically said she won't consider a GM car after bad experiences for her and her friends with them.
Although she does like the Solstice.

 

Yea i think the GF already would have bought a Solstice if it were to come in an auto.

 

You are absolutely right. GM ruined its reputation through many years of pissing off their customer base. There's only two ways they're going to see a speedy recovery of those customers:

#1 - Toyota or Honda starts screwing up their QC badly.
#2 - GM starts putting their warranty where their mouth is and offers a MINIMUM of a standard 6 year 70k mile bumper to bumper warranty. 10 year 100k mile warranty would be even better.


I'm at a complete loss as to why GM doesn't do this. If their products really are as well made as they claim they are then the only thing they'll have to lose is profit on parts and the dealership's shop profits, but isn't that exactly why GM is in the trouble they are in today? Refusing to sacrifice short term profits for long term reputation (and eventually long term profits/market share)? GM is just too damn short sighted and a lot of it has to do with the mindset of modern day stockholders (profits now, not later)

 

Ouch -- can't dig that kind of change out of the living-room couch! Industry analysts attribute much of GM's woes to the simple fact that the automotive industry has become horribly competitive in recent years. New foreign competitors, wider product lines for all manufacturers, improving quality at all price points. It's tough for the best of them, and GM was arguably not among those "best."

GM seems to be developing better products, but sadly they seem to be always behind the curve. I'm in a Pontiac Solstice press car for a week, and it's a decent car in most respects. But Mazda just came out with a new Miata that's far more refined feeling in almost every way. Admittedly, the new Miata doesn't look as cool as Solstice, but awesome styling only gets an automaker so far. Eventually the customer is going to drive the car -- and it's competition too.

I wish GM the best. But you have to wonder about any business that basically goes from one turnaround plan to another.

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AUTIV
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That's the problem with a lot of companies today. The shareholders will bleed a company dry tomorrow to make a buck today. And none of the CEO's have the ***** to tell them that the actions that will make them that buck today may not be the best thing for the long term health of the company.

 

I believe this to be true as well. GM is not alone in having to deal with this shareholder mentality. Instant gratification, I want it now!!!

 

Thats exactly right, it'll take much longer than a few months to convince consumers they're good cars again...

As for GM building phenomenal cars thats rubbish...unless they're being compared with the turds they have been producing the last 3 decades. They still do not have the quality that toyota, honda or even nissan has. American car companies can't just build a car as good as the competition, they have to build BETTER than the competition to win back buyers. The fact that they're not yet as good is a bad sign. GM will probably bounce in and out of profitability for a few years. Unless they get serious about building good cars its not going to be good the next decade.

 

I say, bring the Camaro back and everything will be fine and dandy with GM.

 

Thats not true at all, I'm invested heavily in a variety of companies, myself and most of the people I know would rather have consistent long term results then money today. Its the CEO's and management who's stock options are tied directly with how they do next quarter that really screw up companies.

Toyota is a perfect example of a company that has focused on long term results and the outcome has been fantastic.