GM cutting Jobs & lineup

[Drac0nic]

Originally posted by turboscott
The GTO is nothing more than a Grand Am with a bigger engine. They have all this hype about the GTO coming back and look what it is, a big disappointment.

IMHO they should have called it a Manaro, which is what it really is instead of taking the "design on a dime" approach and just slapping some GTO labels on it.

 

[Lhorn]

outstanding interior, 6speed manual tranny, big 4 wheel disc brakes, RWD and independant rear suspension are now standard or available on the Grand Am?

You can make the case that the GTO is no prettier than the Grand Am, but to make the case that they are nearly the same car is silly.

 

[bruce]

Originally posted by Randy Greenoe
If they paid the designer at Pontiac that designed the Aztec more than a $1.98 they got cheated.

The rumors of what happened with the Design Chief over that are, well, something only GM would do, in their worst moment. Second only to the Fiat deboggle.

 

[Lhorn]

I would suggest that the Aztec is not much uglier than the Scion Xa or Xb. What's different (other than the price) is that Toyota has somehow convinced folks that the Scion's are cool. Seems it's all about attitude/image. When I first saw the Xa, I thought, my gosh, that is the absolute ugliest car I've ever seen. Yet it still sells and a certain segment (Ricers) seem to drive them proudly as though they aren't a (reliable) **** box.

 

[TRBON8R]

It's always good when the shares of your company take a 20% dive in one day (as of the time I'm typing this). I'm starting to think I was wrong and the end may a lot closer than I thought. It sounds like just a matter of time now before GMs bond rating is lowered to junk.

GM reported today that their income may be as much as "80% below its prior forecast". They will lose money in the 1st quarter.

I feel sorry for the folks invested in this company. I know there have to be millions of Americans that were banking on GM stock being their retirement money. There are some American companies that we all just kind of count on to be around forever, 3M, Exxon-Mobil, General Electric, Boeing, Microsoft, General Motors........ oops.

I don't understand. How can a company that has been slowly eroding for 20 years not manage to pull things together in two decades? If I sound like I'm rubbing salt in an open wound I'm not. I'm simply disgusted and saddened at the thought of an American institution such as GM being in such a pitiful condition.

https://us.etrade.com/e/t/invest/st...ON-U-S-WEAKNESS&provider=ReutersUSCompanyNews

 

[crownvic96]

Fords not doing any better than GM. A lot of it is because of bean counting engineering and management. its the attitude that "well this part may have a 20% failure rate but its 60% cheaper than the next cheapest part so therefore we can justify going to this part." problem is the big picture, they don't seem to grasp it. using persnonel with non automotive related backrounds to make management descisions is killing them.

i saw an article a few weeks ago showing how the big three are paying out over a billion dollars a year to workers that don't work because of the way they set up some weird union contract about 20 years ago. and they can't let them go. these people are getting paid 70k a year to not work anywhere.

toyota is pretty much set to be the worlds largest auto manufacturer in the next 5-10 years. better management, less union involvement and relying on quality engineering not cost engineering to manufacture inexpensive(note i didn't say cheap) and reliable vehicles.

 

[Steve Petro]

Next Tuesday is my last day........

I have been a direct GM employee for 15 years. My last day of work is next Tuesday. I have worked in Design which many of the jobs are outsourced or off-shored to low cost country suppliers.

I had to get out while the buy-out offer is still around. I do not want to mention anymore what is going on...............

Alot of heads on the chopping block. I was a salaried employee also. They can get rid of people at ANY time, IF you do not take an offer or early retirement. The choice to leave was really clear to me. I am actually relieved.
Time to move on to my real passion...........CARS!!!!
Details to follow...............................................................

 

[turbofish38]

Originally posted by bruce
GM also took a 1 Billion dollar hit to pull out of Fiat.
Yes, with a *B*.

Between poor management, and the unions, there's just about no way they can pull out of this tailspin.

Fix It Again Tony!

Hey thats 1B lira,not yankee dunero. I dont have any idea what the exchange rate is. Here is a copy and paste from GM's news relaese:
FOR RELEASE: 2005-02-13

GM, Fiat Reach Settlement Agreement



Master Agreement Is Terminated
GM Preserves Diesel Engine Capability
Joint Cost Savings Expected to Continue


DETROIT - General Motors Corp (NYSE: GM) and Fiat S.p.A. (NYSE: FIA) today announced they have executed an agreement to terminate the Master Agreement between the companies and realign their industrial relationships. The boards of directors of both GM and Fiat have approved the settlement agreement.

GM will acquire certain strategic assets from Fiat to assure the future availability of a full range of diesel engines for vehicles produced by GM's global operations.

"GM and Fiat have agreed that it is in the best interest of their companies and shareholders to terminate the Master Agreement," said GM Chairman and Chief Executive Officer Rick Wagoner. "GM has derived significant benefits from its association with Fiat Auto, including the accelerated development of diesel engines, cost savings and the joint development of certain vehicle programs. With this settlement, our overall financial returns will have been favorable.

"We believe that we have reached a fair and equitable agreement that enables both companies to maintain a high level of synergy savings, but in a more focused approach that gives each of us more freedom to act in today's competitive environment," Wagoner said.

Under terms of the agreement, GM will pay Fiat €1.55 billion to terminate the Master Agreement (including the put option) and to acquire an interest in key strategic diesel engine assets, and other important rights with respect to diesel engine technology and know-how. GM will return its 10 percent equity interest in Fiat Auto Holdings to Fiat S.p.A.

The most significant elements of the settlement agreement are as follows:

The Fiat-GM Powertrain (FGP) joint-venture company will be dissolved and GM will regain complete ownership of all GM assets originally contributed. During a transition period, FGP will continue to supply both companies so that their respective operations will not be disrupted;
GM will co-own with Fiat key powertrain intellectual property, including the SDE and JTD diesel engines and the M20-32 six-speed manual transmission;
GM will acquire a 50 percent interest in a new joint venture limited to operating the powertrain manufacturing plant in Bielsko-Biala, Poland, that currently produces the 1.3 liter SDE diesel engine;
The GM-Fiat Worldwide Purchasing joint venture will be dissolved.
The companies will continue to generate joint cost savings in several key areas, including:
Long-term agreements to supply each other with powertrains;
Continued cooperative development of certain vehicle programs;
Through Fiat's participation in GM's purchasing alliance program.
GM will take an after-tax charge to earnings of approximately US$840 million, or $1.49 per fully diluted share.



I dont know,Sounds like GM came out smelling like a rose. I wonder if we will be seeing any diesel powered Aero's crawling along on the interstates?

 

[turbofish38]

Oh and one more thing. While you are all sitting back crying about 3K people loosing their jobs look out in your driveway and ask yourself why you dont drive a new GM car or truck? Non of that BS about quality and price and selection either.

 

[nisnutz]

Originally posted by turbofish38
Oh and one more thing. While you are all sitting back crying about 3K people loosing their jobs look out in your driveway and ask yourself why you dont drive a new GM car or truck? Non of that BS about quality and price and selection either.

Let me get this straight we should all buy GM so thousands of overpaid union workers keep their jobs?Reguardless of price,quality or selection?You drive a hard bargain with your logic.Now I just have to decide which fifty thousand dollar truck to buy,Any suggestions?

 

[Woody]

I read that GM nets (yes NETS) $10,000 on each surban sold !!!
Dealers are out to rape you when you buy a new vehicle.....get every penny that can from you.........

There is a small town dealer (Ford) in southwest Oklahoma who sells new Ford vehicles for what he buys them from Ford. He doesn't have a large service department or salesmen or for that matter a large staff........His profit is from what Ford gives him to buy a vehicle from them ( from $300 to $600) depending on the vehicle. What a great way to make a living

 

[gnturboray]

I just saw that on the news,,,that sucks.

GM's wacked out designs are hurting their sales. Both Ford and Dodge sales have sky rocketed compared to GM.

 

[MeanBuicks]

Originally posted by TRBON8R
GM better pull their head out and do it fast. They are scrambling to find money to fund pension plans for their workers and their bond rating is hovering one notch above junk status. Basically all the cash is out of the mattress and their U.S. automotive operations still don't make any money.

Hmm. It's said that GM is currently sitting on $23.3 Billion in cash and securities. Even though they are approaching dire straights, you'd think they'd have enough to take care of workers.

 

[36IndexGN]

This is happening to GME also. The main plant in Trollhaettan is being shut down by 2010.

GMs midsize European cars will be built at the Opel plant in Russelsheim Germany. Dispite Sweden's pledge of over $300 million in improvements to infrastructure, the Trollhaettan plant isn't slated for any new cars after the Cadillac BLS.

Problem is, GM doesn't realize the Cadillac brand is not going to sell in Europe.

 

[MeanBuicks]

GM has had some duds lately without a doubt but I'm under the impression that Cadillac is definitely up to snuff make it in Europe these days with a smart combination of bold styling, smooth power and sharp suspension tuning. I don't think that expectation on their part is far off.

 

[MeanBuicks]

Oh geeze!

I dub thee, Bob Klutz.

As gasoline prices are headed for record highs with no end in sight, GM pulls plug on '08 line of cars so they can speed release of new full-size trucks/SUVs. I'm sure sales of those type vehicles will continue to boom when gas is $3.00/gallon.

So much for the Buick Vellite, Camaro & revamped GTO.

 

[TRBON8R]

More news:

"NEW YORK (MarketWatch) - Banc of America analysts reiterated "sell" ratings on General Motors Corp. (GM) and Ford Motor Corp. (F) Monday, saying it might "already be too late for any stakeholder (even the government) to help reverse the slide of the business fundamentals." The No. 1 and No. 2 automakers, and Daimler Chrysler (DCX), all need to immediately and aggressively "cut their dividends, right size capacity, cut healthcare benefits, reinvent their brands, introduce better products, reduce rental fleet sales, institute supplier warranty sharing programs, lower prices and reduce their finance subsidiary capacity," according to Banc of America's research note. GM shares rose 27 cents Friday to $28.62; Ford shares fell 28 cents to $11.39 and DaimlerChrysler shares dropped 15 cents to $45."

I see, is that all GM needs to do, basically reinvent itself? No problem, piece of cake.........