Okay, now for something completely different, it's 2012 and GM lives....
Say you make an average of $3000 on Cadillac's 93,200 cars = $280 million
Say you make an avera of $1000 on Chevy's 627,626 = $628 million
You have to produce 3 times as many Chevies to make the same amount of money.
Last edited by rlchv70; Nov 18, 2008 at 01:50 PM.
Im not, so all is well...or is it?
Yes, but GM doesnt need help on making cars, they need help on profitability.
Failure? How do you measure failure? Last time I checked, GM was saying they can't make it past December without going under. That sounds like one hell of a failure to me.
Most people dont know that or see that.
There was something Scott said that brought it all together. "Without money there is no GM". That makes ideas and dreams of doing things and going in certain directions a completely moot point. As long as GM is in this type of prediciment, Alpha (hate to say it) is in the same boat as the RWD Impala & the next gen large trucks. If it isn't cheap to do and can be used over a large number of models, it's a non starter.
The only way the Alpha will see the light of day is if it's sold as a Sigma & Zeta replacement. Something Holden and Opel would need, which would spill over to Cadillac and next gen sporty coupes. But if you try to sell it as a means for Cadillac to compete with BMW, it's dead in the water.
All these ideas and opinions are great. In a company with the cash to do it, or at least capable of financing these plans, this idea would (and did) fly. However, GM is about to get some type of financial help. There's likely to be some type of heads rolling on this. Even in the unlikely event that aid allows most everyone at the top to keeps their jobs, the money is going towards the most critical projects and top public relations projects.
If there's only enough money to choose one or the other, the Volt is going to win over the Alpha. Shutting down a couple of plants and paying off it's workers are going to win over Alpha. A restyle on the soon to be long running GMT900 will win over the Alpha. If GM is faced with a choice between spending money on matching Ford's plans to restyle vehicles every few years or financing Alpha, restyling is likely going to win. Choice between upgrading the quality of it's North American cars versus funding Alpha, Alpha wins. Choose between using the money to counter GMAC's virtural cutoff of credit to GM buyers or funding Alpha, no contest. Alpha looses.
I would like to see Sigma and Zeta turn into something better.
Again, the point is GM simply not only has no money, they have massive debt and an incredible burn rate that will accelerate the longer the credit crunch continues. If GM gets half of that 25 billion planned to bail out the auto industry, GM's share likey won't be much more than $12 billion. GM burned up more than that the 1st quarter of this year.
There's no shortage of opinions, but opinions don't make a business case.
You can pretty much bet the farm on this. Alpha is dead in the water (and probably isn't even in the pond) till at the very least GM's fortunes turn around and positive cash flow kicks in again.
You can pretty much bet the farm on this. Alpha is dead in the water (and probably isn't even in the pond) till at the very least GM's fortunes turn around and positive cash flow kicks in again.
The only way the Alpha will see the light of day is if it's sold as a Sigma & Zeta replacement. Something Holden and Opel would need, which would spill over to Cadillac and next gen sporty coupes. But if you try to sell it as a means for Cadillac to compete with BMW, it's dead in the water.
And having Cadillac compete toe to toe with BMW's, (as well as others), best selling range of cars - both here and Europe, is exactly it's purpose. Of course, that also opens up the opportunity for the other divisions to take advantage of a small, RWD, sporty architecture.
Chevy and Cadillac sharing components only makes good sense. Of course, the extra refinement and luxury should be seen and felt in Cadillac.
190 would be MAX length of any of the Alpha cars, including a CUV.
203 would be way to big. Alpha would then have to replace Zeta and Sigma.
Now THAT would be amazing. I wouldnt hold my breath for that. I dont think GM could engineer ONE platform to handle 3 levels of sedan. They cant do TWO!!
203 would be way to big. Alpha would then have to replace Zeta and Sigma.
Now THAT would be amazing. I wouldnt hold my breath for that. I dont think GM could engineer ONE platform to handle 3 levels of sedan. They cant do TWO!!
I guess I wasn't clear. I was writing about what models Cadillac needed, assuming two or three platforms. I think the Alpha Caddy should be 179", with a second model at 185", if they really need it (i.e. have cars at both 3-series and G37 sizes), though I don't think the market's big enough for that many models.
Use the Sigma or Zeta for the 191" car and a stretched version for 203.
Trucks and SUVs were selling well, and you make a large profit on each vehicle. Where would you spend your R&D money?
EV1 was NOT selling well, had a limited range, and did not make a profit. Would you keep it? Would you invest R&D money into it?
Gasoline and oil prices were relatively stable and comparatively cheap. Would you invest in high fuel mileage vehicles?
I'm sure there are many many more. Yes, you can armchair quarterback it in hindsight. But, put yourself in GM's position knowing what they knew AT THE TIME.
Anyone catch Obama's call today for radical decreases in auto emissions from now until 2020? I didn't catch the whole thing, but from the sound of it, if that goes through, you can pretty much forget all of your preconcieved notions of what you consider a "car".
But the purpose of Alpha is not to simply be thrown together from existing parts, it's to compete without excuses in it's intended segment, in a way which enhances Cadillac/GM's global image.
And from the sound of it, it seems like Lordstown could be the next Oshawa, with both Alphas and Deltas being assembled there.
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