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tama z71

Feel Good About GM

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tama z71    0

Feel Good About GM
It’s about time

An Explicative Automotive Commentary by Tama
September 25, 2006



If the recent slew of good news coming out about General Motors from the company and its critics isn’t enough to make you sport an ear-to-ear grin, promptly see yourself away from this article, because it wasn’t written for you.

This one is for all those faithful who have waited the months and the years and the decades since GM was last the juggernaut of the auto industry, through every broken promise and half-assed CEO, through the seemingly unending bureaucracy, and through every damned Cavalier, Aztek and CSV. To those faithful, forget the past and look to the future, a future filled with giggle-inducing good cars, competent leadership and too many other good things to list. Yes, right about now, things are looking quite damn good.

Leadership

CEO Rick Wagoner's plodding, methodical plan to revitalize GM is starting to bear fruit, and the key to it all is the Bob Lutz-led product blitz that's taking shape right now and over the next 24 months.

Peter DeLorenzo, autoextremist.com

Good leadership has been decidedly lacking at Renaissance Tower for the past forty or so years, and that is something that sticks in the minds of most when considering GM’s past ails. This should have come as insulting decades ago, as the fourteenth floor used to be the domain of great leaders, legendary names such as Alfred P. Sloan and John Z. DeLorean, Engine Charlie Wilson and Bill “Bunky” Knudsen, whose attitudes and personalities mirrored perfectly the maverick attitude of the cars they produced. Leaders like these continue to stand on even greater pedestals as the corporate heads of the present continue to expertly fill the stereotype of self-serving, soulless money-mongers who seem better fit to crunch numbers in a stock exchange than run a company with any measure of charisma or character.

With thanks to the Good Lord almighty, GM has made a very respectable run of rebuilding the image of the maverick corporate leader, and no better way to start that process than by reaching back and grabbing a piece of that history while its still around and kicking. CEO Rick Wagoner knew this well enough, and also knew that his number-crunching background would not fly making product decisions, hence the arrival of the charismatic and memorable Bob Lutz. So far, each man has filled his role in ways far beyond the expectations of recent GM leaders.

Wagoner has proven very competent, if not completely effective. His cost-cutting measures have made noticeable gains, and done so without adversely affecting new product quality (a factor which has been markedly improving despite marked cuts). He has also decreased the amount of redundant plants, worked cooperatively with the United Auto Workers labor union, and began the process of turning GM into a truly global company, a task that has been very successful if GMs overseas sales and product plans are to be any gauge. However, the true measure of his success at GM will come between now and 2010, after which he will have dealt with the essential round of UAW negotiations in 2007 and come to terms with ailing supplier Delphi Corp.

Everybody’s favorite GM guy has undeniably been Bob Lutz, whose no-bull$h! personality and absolute confidence in his cars and his company is becoming the stuff of legend. Maximum Bob’s first strides came with eliminating the redundant departments of GM middle management, a white-collar bureaucratic orgy comparable in scale only to the federal government. Eliminating the infamous “beancounters” was a tremendous and painfully necessary first step in reviving General Motors cars to a level of impulsive purchase, just the deed Bob was hired to perform.

Now that the grunt work is done, Bob has gotten to doing what he does best, and that is build cars people want to buy. Bob’s current product run is one of the most profound changes in GM in the past five years. His pet-project Kappa coupes have been sold out for the better part of two months. The much-anticipated and highly-regarded 900 series SUV’s have been a striking success, stealing market share in a segment that is steadily declining and garnering more media praise than any Detroit carmaker is used to seeing. The 900 series trucks are already looking best in class. The Corvette is absolutely unstoppable. Retail sales are up across the board. Media favors are starting to shift, if slightly. All that is just what’s going on right now – the future product portfolio is said to be even more outstanding. To quote Peter DeLorenzo of AutoExtremist.com, “I've seen GM's product plan out to 2009, and it is indeed extremely impressive. Stunning, tasteful and in some respects avant-garde designs, fuel-efficient, responsive and technically advanced powertrains, artful interior packaging and sumptuous materials, GM's future product lineup will be ultra-competitive and most important, desirable on its own merits…"

Technology

Few people will mention General Motors as a knee-jerk response to who they perceive as being the most technologically advanced car company. Often times, it is the likes of the Germans and their crazily senseless computer works that are getting the credit, or the Japanese and the advancements that they borrow from others, improve upon, and claim. Or something like that. Whatever.

However, Big Blue is coming on strong in several key areas that its former self would have likely ignored. By far the most notable of these changes is the Chevrolet Sequel fuel cell vehicle. It will be the first hydrogen vehicle available for mass consumption, and is a huge step for GM and the auto industry as a whole (if BMW wants that distinction, they ought to claim it quietly – their hydrogen7 is still supplanted by a gas engine). In addition to its water-vapor emitting engine, the clean green Sequel also rides atop the GM patented skateboard platform – a by-wire chassis with no moving parts that can underpin any one of a number of body styles. Imagine for a second that every GM plant in the world builds its car around the same skateboard chassis - changes in the industry could be addressed in months, very well beyond the capabilities of the competition. That’s huge.

Delving further into the field of fuel reduction and hippie-pleasing vehicles, GM will offer 13 hybrid vehicles in the coming years, more projected models than any other automaker, including Toyota, the current and well publicized leader of that market. The General’s hybrid bus lines save hundreds of thousands of gallons of fuel annually over comparable non-hybrid models, and orders for these buses have increased sharply in response.

GM is also the far-away leader in the E-85 market, with over a million such models on the road already and more applications for the technology in the works. If the market for the fuel ever warms up to a more sustainable level, GM has placed itself in a commanding position. If not, its good press. Win-win.

General Motors is also pioneering a few other sensible applications as we speak. They introduced their first direct-injection motor at the same time as BMW(!). OnStar has been a constant and exclusive success to GM, though it remains to be seen how the OnStar navigation system will fare compared to traditional touch-screen nav setups. The Bose suspension is an absolute wonder of automotive engineering, and though the system was developed by Bose engineers, the company’s work with GM audio should let us expect to see the system to break cover in a Cadillac or Buick.

Don’t forget the recent patenting of the 8-speed logo. Whether the necessity of the product is really justified remains to be seen, but that GM is quick to challenge Lexus and Mercedes in what will surely be a lauded innovation, for the sake of keeping up, speaks volumes about the change of mindset in GM production. General Motors innovation is very prevalent. As long as the cars continue to avoid sporting commercial airliner-like dashboards and five-pound owner’s manuals, GM technology will be in the right place.

Cars

…if this business is all about the product - which it well and truly is - then GM has a real shot at serious, sustained momentum…

Peter DeLorenzo, autoextremist.com

CAMARO

There, I said it. Nothing else needs to be said.

For the rest of GM’s future line-up, much remains to be said.

For starters, GM’s brands are falling nicely into line and they are finally, finally developing their own identities as the era of corporate rebadging meets its mercifully necessary end. Those in the media who have seen the future products have sung their praises far and wide.

Since 2002, Cadillac has been the barometer for GM’s comeback success. The highly successful Art & Science renaissance turned the entire brand around, the V-series is placing serious competition to the likes of M and AMG, and the second phase of the renaissance is set to get underway. The new SRX interior is just a teaser, and the Escalade name has never really worked in conjunction with the rest of the brand. The 2008 CTS will be the true test of the brands staying power, and spy photos have revealed a deliciously good car, limited as its exposure has been.

The Buick-Pontiac-GMC channel is getting their act together as well. The new Sierra looks like a knockout, and the Acadia appears to be strikingly competent in the newly ordained “most competitive segment in the industry,” crossover sport-utility vehicles. All kinds of vehicles are flooding the segment that is defined by vehicles that have no real definition, but the Acadia appears to be a vehicle that will sell strongly of its own merit.

The Solstice needs no word of mine to sing its praises, the G6 line is increasingly selling more and improving upon itself, and GXP badge is starting to turn the Pontiac name into something of a performance line (imagine that!). Buick is getting its share – the Lucerne is a retail winner, outselling the near-luxury sedan competition by the thousands. The Enclave looks like a real winner, and one of the most striking and accurate assessments of American design essence since, well hell, the 1950s! With the introduction of the Zeta platform and Holden’s wonderful new Commodore line, both brands stand to rake in the benefits of a viable and well-built rear-drive platform.

Chevrolet is now the number one selling brand in America. The Saturn line has undergone an overnight and staggeringly good revitalization, the basis for which was relatively inexpensive and too plainly sensible to have ignored. HUMMER is quietly doing a good job of filling in the proud market niche that Jeep is abandoning with each new product. All the brands are putting out better advertisements. Overlap is being reduced. Rebadging is (hopefully) done for. Future cars like the 2008 Malibu and CTS are already said to be benchmarks. Things are going damn well, indeed.

All parties involved are benefiting from the new GM corporate culture, a job that began with the management and a job whose effects will ultimately be the spoils of us, the consumers. General Motors is already one of the oldest automakers around, and they are drawing on that advantage while becoming a completely new company. It’s an awkward dance, but one that GM is currently playing to perfection.

It’s a good time to be a General Motors fan, and it’s about damn time.

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z28luvr01    170

:sign0200:

Wonderful article, tama! Assuming they don't screw it up, the next few years are going to be amazing for the General. It should be sustained too. Unlike Ford and Chrysler, their comeback isn't based on one or two cars (Mustang, F150 for Ford; LX cars for Chrysler). Everything in the pipeline looks to be cant-miss.

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intrigued    9

I strongly agree with this article. GM is already back to a strong operating profit and has already paid off the vast majority of its restructuring costs. GM's biggest hurdle is Delphi and keeping them from becoming a money pit and further financial burden for GM. If a cost effective way can be found to accomplish that 2007 should be an outstanding year financial for GM with stable sales. 2008 I think will be even better financially and should see a small sales gain with the product coming that year.

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gm_rocks    0

I would too, have to agree with this article. I think GM is on the right track on its turnaround plan.

Maybe keep Toyota in the rearview mirrior :P

I can't wait until some of these products go on sale, the Enclave looks really..really good :)

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loki    287

nice.

this year's bread winner, all (in some way), but the trucks should blow ford away, again.

next year we'll hopefully see a big boost in malibu sales, the lambdas, and the cts from what I know of 08 products.

then zeta's!!!! looking good for GM :)

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Regalguy01    0

Articles as well thought-out and unbiased as this keep me comin' to this site. Great job man! :CG_all:

Everybody’s favorite GM guy has undeniably been Bob Lutz, whose no-bull$h! personality and absolute confidence in his cars and his company is becoming the stuff of legend.

Couldn't have said it better myself. If Bob ever finds his way to Mississippi, there are a few bars i'd love to take him to and show my apprecation for the job he's doing! :thumbsup:

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prototype66    0

:bowdown:

You nailed it!

(Although you kinda glazed over Chevy, just my personal favorite)

Very well said! The next few years will indeed be the turning point for their return to their glory days. :thumbsup:

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dford    0

While that was a great article for the faithful, it ignores many of the challenges that GM still faces going forward:

#1 Healthcare, despite all the buyouts, this problem isn't going away any time soon and will still cost $billions, all of which comes from product development.

#2 Product - yes GM has released some greatly improved models recently, we can't forget that for many of its most mainstream models, more than 50% go directly to fleet sales which are least profitable and hurt resale values for actual customers. Chevy can sell 300,000 Impalas year after year, but until those 300,000 are consumers and not fleet, GM isn't making much progress. When Chevy sells more than 50% of Cobalts, Malibus AND Impalas to fleets, it is hard to pat them on the back for sales figures. Then look at Pontiac, same thing: more than 1/2 of G6 and Grand Prix go to fleets.

#3 Competition - I'll know GM is back when the car magazines put GM vehicles back into the comparo tests. When C&D does a comparo of $50,000 luxury sedans and leaves out the STS, which on paper matches up to those tested, there's trouble (They didn't even bother giving an excuse why, suggesting the STS wasn't considered at all). Or when they do a test of midsize cars and only pick the Ford Fusion to battle all the imports (it came in 2nd to the Accord BTW). Where was the Malibu or G6?? And when they do include GM vehicles, they fare poorly. Witness the recent C&D test of luxury SUV's. The brand new Escalade came in 4th out of 5 - only the (also new) Navigator fared worse.

GM may be on the right track, but it will take another 10 years of progress to get where they need to be, if they have that long.....

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tama z71    0

While that was a great article for the faithful, it ignores many of the challenges that GM still faces going forward:

#1 Healthcare, despite all the buyouts, this problem isn't going away any time soon and will still cost $billions, all of which comes from product development.

#2 Product - yes GM has released some greatly improved models recently, we can't forget that for many of its most mainstream models, more than 50% go directly to fleet sales which are least profitable and hurt resale values for actual customers. Chevy can sell 300,000 Impalas year after year, but until those 300,000 are consumers and not fleet, GM isn't making much progress. When Chevy sells more than 50% of Cobalts, Malibus AND Impalas to fleets, it is hard to pat them on the back for sales figures. Then look at Pontiac, same thing: more than 1/2 of G6 and Grand Prix go to fleets.

#3 Competition - I'll know GM is back when the car magazines put GM vehicles back into the comparo tests. When C&D does a comparo of $50,000 luxury sedans and leaves out the STS, which on paper matches up to those tested, there's trouble (They didn't even bother giving an excuse why, suggesting the STS wasn't considered at all). Or when they do a test of midsize cars and only pick the Ford Fusion to battle all the imports (it came in 2nd to the Accord BTW). Where was the Malibu or G6?? And when they do include GM vehicles, they fare poorly. Witness the recent C&D test of luxury SUV's. The brand new Escalade came in 4th out of 5 - only the (also new) Navigator fared worse.

GM may be on the right track, but it will take another 10 years of progress to get where they need to be, if they have that long.....

198337[/snapback]

As uplifting as it was for us, it should have been more of an eye-opener for non-believers like you. I agree, things will take time to be 100% correct, but my article, to me at least, was a much needed look at the bright side in lieu of constant negative feelings (like yours).

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dford    0

I am by no means a GM hater, but I believe in being realistic in assessments of the Big 3's challenges and progress. A rosey view like yours doesn't reflect the reality of the situation. I was very upset to see the STS left out of that comparo test, as I am each time a GM vehicle is, because I want to know how far GM has come, and not just assume the worst.

But even a GM cheerleader should be concerned when 1/2 of all GM cars go to fleets and not to customers (include the trucks, I'm sure it's close). That means regular people aren't buying the cars, and GM will never have enough $$$ to fund it's obligations AND develop great cars if consumers aren't buying.

At least GM has a plan and seems to be executing it, while Ford still wanders aimlessly.

I, for one, would love to buy a Pontiac G8 with RWD, 400hp and 6spd manual for $32,000. Let's see if such a car comes to be....God knows it won't come from Ford!!!

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tama z71    0

I am by no means a GM hater, but I believe in being realistic in assessments of the Big 3's challenges and progress. A rosey view like yours doesn't reflect the reality of the situation. I was very upset to see the STS left out of that comparo test, as I am each time a GM vehicle is, because I want to know how far GM has come, and not just assume the worst.

But even a GM cheerleader should be concerned when 1/2 of all GM cars go to fleets and not to customers (include the trucks, I'm sure it's close). That means regular people aren't buying the cars, and GM will never have enough $$$ to fund it's obligations AND develop great cars if consumers aren't buying.

At least GM has a plan and seems to be executing it, while Ford still wanders aimlessly.

I, for one, would love to buy a Pontiac G8 with RWD, 400hp and 6spd manual for $32,000. Let's see if such a car comes to be....God knows it won't come from Ford!!!

198421[/snapback]

No dude, you're missing the point. Most articles about GM still highlight all the negatives, but I have yet to see one that offers up the skinny on all the good things that the company is doing.

Its not a suggestion that company is out of $h! creek and showered off yet. Im just saying that they are on their way and my article serves to give all the reasons why.

And on a less objective level, its meant to make the fans feel really damn good about the progress that is being made. We havent had much of that for too long. This should definitely (hopefully) serve as a spirit lifter, but its not stretched or fictionalized in any way. Its just a look at the other side of the story that is not often told.

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daves87rs    349

I am by no means a GM hater, but I believe in being realistic in assessments of the Big 3's challenges and progress. A rosey view like yours doesn't reflect the reality of the situation. I was very upset to see the STS left out of that comparo test, as I am each time a GM vehicle is, because I want to know how far GM has come, and not just assume the worst.

But even a GM cheerleader should be concerned when 1/2 of all GM cars go to fleets and not to customers (include the trucks, I'm sure it's close). That means regular people aren't buying the cars, and GM will never have enough $$$ to fund it's obligations AND develop great cars if consumers aren't buying.

At least GM has a plan and seems to be executing it, while Ford still wanders aimlessly.

I, for one, would love to buy a Pontiac G8 with RWD, 400hp and 6spd manual for $32,000. Let's see if such a car comes to be....God knows it won't come from Ford!!!

198421[/snapback]

I'm glad things have improved...and there have been only a couple of setbacks.

On it's own, at this moment, GM is doing fine.

All their problems are not going to be solved overnight. But from what I can see

right now, they are taking care of those issues as they get to them....

Anyways, positive is a good thing, who wants to think about all the bad stuff? :P

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tama z71    0

MY point is that you are preaching to the choir here.

198463[/snapback]

The choir appreciated the pep talk. There's no room for negative nancys in this thread.

If the recent slew of good news coming out about General Motors from the company and its critics isn’t enough to make you sport an ear-to-ear grin, promptly see yourself away from this article, because it wasn’t written for you.

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Guest YellowJacket894   
Guest YellowJacket894

dford, I couldn't disagree with you more. You missed the just of the article here. The purpose was to highlight GM's progress to the future, which is looking bright.

Car & Driver, along with other auto mags, have tested GM products unfairly in the past. The only exception that comes to mind where I know the press gave GM appluase with a mainstream product was with the 1998 Olds Intrigue. That car, particularly the V6 model, was put in the ring with the big-sellers -- the Camry and Accord -- and came out first in a few comparisons.

Anyway, the recent Luxo-Ute test didn't give the Escalade the credit it deserves. Whereas Motor Trend put it first in a similar comparo of their own, Car & Driver placed it last. Hell, they even ranked the features list low when it beat out a Range Rover in the same catagory in MT.

I, for one, would love to buy a Pontiac G8 with RWD, 400hp and 6spd manual for $32,000. Let's see if such a car comes to be....God knows it won't come from Ford!!!

I think something like that might come from GM soon. And, yes, don't expect Ford to do anything like that. Ever. They are illiterate to the meaning of the words "heritage," "consumer," and "enthusiast."

Edited by YellowJacket894

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dford    0

No offense, but is GM's ignoring of the "negative Nancy's" that got it where it is today. At least GM fans should be realistic about the situation. I want Ford and GM to succeed, and I celebrate their successes, but I won't turn a blind eye to their challenges either, and neither should any of you.

If you stifle opinion in your forum, then you are no better than the Unions banning non-GM cars from the parking lot or GM executives banning non GM cars from parking in front of the Ren Center.

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tama z71    0

No offense, but is GM's ignoring of the "negative Nancy's" that got it where it is today. At least GM fans should be realistic about the situation. I want Ford and GM to succeed, and I celebrate their successes, but I won't turn a blind eye to their challenges either, and neither should any of you.

198554[/snapback]

There are plenty of articles out there to do just that. This one does what they dont. Its not wrong, and its not a pie in the sky dream. No where did I say that GM is in the clear. However, there are alot of things taking shape right now to make you feel good about where the company is headed, and that's what GM fans have been missing.

Its clear that you don't understand the intent of the thread, this is the third or fourth time I've explained the premise.

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dford... its funny how you claim we are stifling opinion... when in fact its you that is stifling here...

tama wrote a very nice, very well thought out, very thorough article on the GOOD side of GMs situation... he excluded the bad side because not only are there hundreds of magazine articles that talk about the bad side... there are also thousands of people like you who are quick to point it out...

all this is doing is showing that not all of what is going on at GM is bad, which is what the media would have us believe, why you cant understand that, i do not know... but please... let us have our moment of relief... now that we know that our General isnt doing all that bad

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Regalguy01    0

Dford, a word with you my friend:

#1 Healthcare, despite all the buyouts, this problem isn't going away any time soon and will still cost $billions, all of which comes from product development.

Gm, last I heard, was still taking measures to curb this. It took decades of mismanagment to get as bad as it did, so it will take time to get it to a more managable level I would assume.

#2 Product - yes GM has released some greatly improved models recently, we can't forget that for many of its most mainstream models, more than 50% go directly to fleet sales which are least profitable and hurt resale values for actual customers. Chevy can sell 300,000 Impalas year after year, but until those 300,000 are consumers and not fleet, GM isn't making much progress. When Chevy sells more than 50% of Cobalts, Malibus AND Impalas to fleets, it is hard to pat them on the back for sales figures. Then look at Pontiac, same thing: more than 1/2 of G6 and Grand Prix go to fleets.

Is this fact? I'd really like to see some documentation. The Impala not withstanding, I don't think 50% of Gm's ENTIRE product line goes to fleets. Certainly the ones you mentioned may wear the 'rental queen' crown, but surely not the entire product line. Documentation please to support these claims.

#

3 Competition - I'll know GM is back when the car magazines put GM vehicles back into the comparo tests. When C&D does a comparo of $50,000 luxury sedans and leaves out the STS, which on paper matches up to those tested, there's trouble (They didn't even bother giving an excuse why, suggesting the STS wasn't considered at all). Or when they do a test of midsize cars and only pick the Ford Fusion to battle all the imports (it came in 2nd to the Accord BTW). Where was the Malibu or G6?? And when they do include GM vehicles, they fare poorly. Witness the recent C&D test of luxury SUV's. The brand new Escalade came in 4th out of 5 - only the (also new) Navigator fared worse.

Its funny you mention that cause I just got my Car and Driver magazine yesterday and goffed at the same thing. But Car and Driver also failed to include ANY domestic vehicle. It is a known fact that these car mags are mostly foreign car biased. Take the lucerne for instance. All preconceived Buick perceptions aside, the car has hit a home run with consumers and the sales provide proof of this. Yet go back and read the C & G's take on it a few issues back. No genuine praise is ever really given and even compliments come across as back-handed or given in the same sentence with a mitigating comment. The only reason I even subscribe to the crap is because I love cars and you can practically get a subscription with any purchase $10 or more at the local gas station... lol

GM may be on the right track, but it will take another 10 years of progress to get where they need to be, if they have that long.....

Yes progress is slow for many of us, but try being a corporation who's operating income and assests total more than many small nation's entire economy and you may begin to fathom the gravity of GM's situation. I agree, GMs return to grace will undoubtedly be a long, tedious process. But I am 27 years old, owner of my 3rd GM vehicle(ENCLAVE will hopefully be 4th) and am in for the long haul.

Go LUTZ! :yes: GO GENERAL MOTORS!! :ohyeah: GO Buick!!! :pbjtime:

Long live the PREMIUM AMERCIAN :cheers:

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dford    0

Ok, since I have nothing better to do , I went to fleet-central.com to find out what % of sales GM does to fleet. Since that site was mentioned here, I am sure we can agree on the #'s.

Cars: GM does 41.6% to fleets

Trucks: GM does 21.4% to fleets

So I exaggerated(guessed), I apologize.

Some #'s for you:

Chevy:

Aveo 26%

Cobalt 33%

Malibu 60%

Impala 54%

Monte Carlo 68%

Pontiac:

Sunfire 6%

Vibe 36%

G6 42%

Grand Am 20%

Grand Prix 74%

Bonneville 3%

Buick:

Century 1%

LaCrosse 29%

Lucerne 28%

Park Ave 3%

Regal 3%

LeSabre 6%

Cadillac:

CTS 13%

DeVille 9%

DTS 28%

STS 5%

Saturn:

Ion 14%

....and don't crow about those models with low %, Either they are a discontinued model, or a low seller....

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big blue    1

I'm definitely feeling better about GM, as this is the first time in awhile that I've actually considered purchasing their products. Once they start gaining marketshare and increasing the gap between them and Toyota, then I'll start feeling GOOD about them.

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