G M woes?

[Bobby Clobber]

Interesting story here, seems like FORD isn't alone in the mess?


http://www.detnews.com/2005/autosinsider/0503/21/A01-123402.htm

[Embassy]

General Motors Corp (http://javascript<b></b>:companybox('GM')) has killed plans for a new line of rear-wheel drive passenger cars slated to reach North American showrooms in 2008, in large part to free up resources to bring its next generation of large pickups and sport utility vehicles to market quicker.
GM's decision to kill the Zeta program puts the brakes on development of the next generation Pontiac GTO sports car, and new entries for Chevrolet, Buick and Pontiac. The current GTO is already being produced by GM's Holden unit in Australia.
Many in the industry expected the Zeta architecture would mean the return of the Chevrolet Camaro and production versions of the Buick Velite concept car, which debuted at the 2004 New York auto show to rave reviews.
But he pulled the plug on the North America models after determining the vehicles could not be engineered and assembled to sell at prices competitive with the popular Chrysler 300C, Ford Mustang and other models, without sacrificing quality and content.

Global Insight market analyst John Wolkonowicz said GM's decision to stop the development of Zeta-based vehicles for North America means a missed opportunity to compete.
"The Chrysler 300C is a watershed car like the 1986 Ford Taurus," said Wolkonowicz. "With Zeta, GM had an answer." Great. All we need are more trucks, more SUVs, and more FWD snoozebox automobiles. :rolleyes:

The article states that GM is losing market share and yet they continue to churn out more of the same; SUVs and trucks. Sounds like the definition of insanity.

[MERCMAN]

And to make matters worse LAY-OFFS!! (or RIF would be the correct term)
http://story.news.yahoo.com/news?tmpl=story&cid=509&ncid=749&e=5&u=/ap/20050321/ap_on_bi_ge/gm_labor

[MENINBLK]

Great. All we need are more trucks, more SUVs, and more FWD snoozebox automobiles. :rolleyes:

The article states that GM is losing market share and yet they continue to churn out more of the same; SUVs and trucks. Sounds like the definition of insanity.

Let them build 'em...
2006 is going to kill the SUVs and Trucks like it killed the Mustang in 1973.

[Embassy]

Exactly.

Apparently GM missed the memo on how rising gas prices can harm the sales of trucks and SUVs.

[wsmylie]

Kinda makes you wonder what's happened to GM since the days of their absolute dominance (and probably arrogance too) up and down almost the entire range of the auto market when it was said "what is good for General Motors is good for the country".

[MENINBLK]

Exactly.

Apparently GM missed the memo on how rising gas prices can harm the sales of trucks and SUVs.

Apparently rising gas prices HAVEN'T hurt the rising sales of SUVs and Trucks.
What's going to hurt is the new CAFE laws that go into effect on 1/1/2006.
When the SUV/TRUCK customers start seeing GAZ GUZZLER TAX added to their invoices,
the Crown Vic, Grand Marquis, and Town Car are going to look very attractive !!! :)

[dwasson]

If I was the suspicious type I could start to think that most of the Big 3 upper management works for Toyota.

[Silver_04]

This news along with what is going on at Delphi makes me soooo happy I quit my job a Delphi. Nothing like a having a balance sheet that is off by 200 million...judas priest.

[rookie1]

Kinda makes you wonder what's happened to GM since the days of their absolute dominance (and probably arrogance too) up and down almost the entire range of the auto market when it was said "what is good for General Motors is good for the country".

I agree, GM is a horribly mismanaged company. Seems like all decisions are made by committee and Bob Lutz was supposed to cure this illness.
The comment you're referring was made after a Wall Street Journal article showing that 1 in 7 jobs in this country was directly affected by the Auto industry. I believe the number is still high at 1 in 11.

[04funmerc]

GM needs DeLorian and Zorof back and no bean counters. Too bad.