GM's bussiness model is to be sucessful on very low profit margins. Can't fault them for that

 

How true!

 

Unfortunately, they won't be able to sustain that strategy.

Eventually, GM will tarnish their brands by constantly being in the midst of some kind of 'fire sale' bonanza. Even worse, if new car sales slow down (not unlikely) they will be in deep doody. (Of course, they won't be the only ones...) The pension problem won't help, either.

 

The sad thing is that if things start comming apart, someone will start cutting car development money first.

 

I don't think GM is in too much trouble right now. In the next few years they will have updated all of thier models, with what seems to be, far superior products to what is offered now, and not just trucks. I feel they will do very well in the comming years.

 

Didn't go back and read the latest posts, but Autoweek has posted the same story for those who are doubters.

http://www.autoweek.com/cat_content...._code=04070885

 

Just to be clear, NONE of the big 3 (Chrysler is still an American brand, though they are own by DCX) are going to be closing up shop anytime soon.

GM has a pretty mindboggling assortment of cars comming over the next few years, Chrysler is not only bringing back powerful rear drive cars, but Mercedes & Mitsubishi quality (the next Neon is based on the next Lancer) and their current cost cutting is making Chrysler profitable today, and likely moreso tomorrow. Even our whipping boy, Ford, is still selling strongly (even with a 5-10% sales decline, they are still very very fast selling brand), loosing not much more than bragging rights.

 

Not really GM has been running on this bussiness model for 10 years. Also we know nothing about their books, but last time I checked they were the ones pushing the Ford and DCX into doing the 0% to compete. Other wise I doubt the other two would make those offers.

See in a way GM offering 0% helps GM in two ways. While it sell them more cars than they would at higher interest rates..it will also cripple to competition in the long term because it will suck money from those two corpotate business models that weren't designed to sustain it..while GM was.

Even if the market takes a down term..out of the big three GM is in the best position to come out on top.

 

Proof that it's not always the best that survives.

1) Say the market doesnt exist for Camaro, while the competition continues to sell close to 200,000 Mustangs per year.
2) Eliminate RWD cars from all but you expensive car lines, then send Jon Moss to say that FWD performance is the future.
3) Go to the goverment and force everyone to buy daytime running lights.
4) Scramble to come up with a rear drive chassis after you find out your smallest competitor can afford to spring for it. This is after you've said RWD is too expensive to manufacture compared to FWD.
5) Create a "japanese beating" car division with great fanfare, then barely spend another dime on it for almost 15 years.

Then.....try to drive everyone else under by paying people to buy your cars!

 

And now for our daily Ford Quality issue..

Looks like the Aviator won't get a clean launch either..

http://www.bonforums.com/lincolnmerc...def.110602.htm

only failing suspension parts and engine issues.....

When was the last car they launched cleanly? The Fox Mustang?