NINETY EIGHT REGENCY

GM official says firm on track for turnaround

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Reuters

GM official says firm on track for turnaround: report

Friday August 24, 1:43 pm ET

ZURICH (Reuters) - General Motors Corp.(NYSE:GM - News) was more than half way through with its turnaround plan, the car makers' Vice-Chairman told a Swiss newspaper in an interview.

"We have gone 60 percent of the way," Robert A. Lutz told Finanz und Wirtschaft according to a preprint of the interview released on Friday, a day ahead of the paper's publication.

"GM is on track to achieve cost savings of $9 billion annually and to cut fixed costs from over 30 percent to 25 percent of sales," Lutz said.

The three big U.S. car makers -- GM, Ford(NYSE:F - News) and Chrysler -- lost more than $15 billion on a combined basis in 2006 and are in the middle of restructuring plans that include closing more than two dozen plants and slashing more than 80,000 jobs.

Lutz said the car market in the United States was in a cyclical low at the moment.

"2007 is going to be the weakest year since 1998," he said.

"Consumers are weakened after the downturn of the housing market and we are suffering because of that," he said.

But Lutz said he was confident that GM was on the way to the top again.

"In ten years, General Motors is going to be the world's largest and most profitable car maker," he told the newspaper.

Edited by NINETY EIGHT REGENCY
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I love listening to Lutz. But with GM it's always promises, promises. I'll believe it when I see it.

Reuters

GM official says firm on track for turnaround: report

Friday August 24, 1:43 pm ET

ZURICH (Reuters) - General Motors Corp.(NYSE:GM - News) was more than half way through with its turnaround plan, the car makers' Vice-Chairman told a Swiss newspaper in an interview.

"We have gone 60 percent of the way," Robert A. Lutz told Finanz und Wirtschaft according to a preprint of the interview released on Friday, a day ahead of the paper's publication.

"GM is on track to achieve cost savings of $9 billion annually and to cut fixed costs from over 30 percent to 25 percent of sales," Lutz said.

The three big U.S. car makers -- GM, Ford(NYSE:F - News) and Chrysler -- lost more than $15 billion on a combined basis in 2006 and are in the middle of restructuring plans that include closing more than two dozen plants and slashing more than 80,000 jobs.

Lutz said the car market in the United States was in a cyclical low at the moment.

"2007 is going to be the weakest year since 1998," he said.

"Consumers are weakened after the downturn of the housing market and we are suffering because of that," he said.

But Lutz said he was confident that GM was on the way to the top again.

"In ten years, General Motors is going to be the world's largest and most profitable car maker," he told the newspaper.

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In ten years we're going to be eating with chopsticks and hanging pictures of Mao on our walls.

:blink:

We could all be dead in ten years. I think GM's fate is going to be decided much sooner than that.

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That last sentence was quite the statement...let's hope Bob can keep his word.

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I think GM's fate is going to be decided much sooner than that.

My question is, who's going to die sooner, Bob Lutz or Pontiac? Tick, Tock, Tick, Tock! :AH-HA_wink:

Edited by Pontiac Custom-S
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Bob's last statement is easily achievable.

Deny Toyota any measurable sales in the U.S.A.

Require a 5000 point $50,000 inspection be peformed on each Toyota sold.

After all, Japan is a closed market, the U.S.A. should be as well.

Fair is fair.

Any domestic Toyota jobs lost would quickly be replaced with higher-paying union jobs.

And GM is there next year.

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Bob's last statement is easily achievable.

Deny Toyota any measurable sales in the U.S.A.

Require a 5000 point $50,000 inspection be peformed on each Toyota sold.

After all, Japan is a closed market, the U.S.A. should be as well.

Fair is fair.

Any domestic Toyota jobs lost would quickly be replaced with higher-paying union jobs.

And GM is there next year.

And if donkeys had wings, they'd fly! :rolleyes:

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And if donkeys had wings, they'd fly! :rolleyes:

That was a rather insightful response.

What if I told you I had an affair with your wife?

And when you confront her about this, she tells you the truth is, I'm much better in the sack than you will ever be?

Are we going to be drinking buddies?

Probably not. It's just not fair is it?

The same principle applies here.

If consumers fully understand that Toyota and Japan Inc are not playing fair, they will buy less of the unfair products.

Those products may provide short-term gain, but are inimicable to their long-term prosperity.

As GM becomes more competitive, Japan's sheltered home market becomes more of an issue.

Especially with the title of world's largest, most profitable automobile manufacturer hanging in the balance.

So really, other than an answer my monkey could provide, what have you got against a fair playing field?

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That was a rather insightful response.

What if I told you I had an affair with your wife?

And when you confront her about this, she tells you the truth is, I'm much better in the sack than you will ever be?

Are we going to be drinking buddies?

Probably not. It's just not fair is it?

The same principle applies here.

If consumers fully understand that Toyota and Japan Inc are not playing fair, they will buy less of the unfair products.

Those products may provide short-term gain, but are inimicable to their long-term prosperity.

As GM becomes more competitive, Japan's sheltered home market becomes more of an issue.

Especially with the title of world's largest, most profitable automobile manufacturer hanging in the balance.

So really, other than an answer my monkey could provide, what have you got against a fair playing field?

The response may have been rather cryptic, but I have to concur: Washington just does not have the balls to stand up to Japan Inc (or China for that matter). It's going to take another war or 1,000 people dying from tainted Chinese food for the consumer to wake up. People are too selfish and self-centered to realize the damage we are inflicting upon ourselves by buying imported products.

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The response may have been rather cryptic, but I have to concur: Washington just does not have the balls to stand up to Japan Inc (or China for that matter). It's going to take another war or 1,000 people dying from tainted Chinese food for the consumer to wake up. People are too selfish and self-centered to realize the damage we are inflicting upon ourselves by buying imported products.

That was my point, the lawmakers inside the Beltway will do nothing to help American automakers. I wonder how many foreign automakers contribute to their campaigns on a yearly basis? :scratchchin:

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Bob's last statement is easily achievable.

Deny Toyota any measurable sales in the U.S.A.

Require a 5000 point $50,000 inspection be peformed on each Toyota sold.

After all, Japan is a closed market, the U.S.A. should be as well.

Fair is fair.

Any domestic Toyota jobs lost would quickly be replaced with higher-paying union jobs.

And GM is there next year.

Sounds great to me.

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That was my point, the lawmakers inside the Beltway will do nothing to help American automakers. I wonder how many foreign automakers contribute to their campaigns on a yearly basis? :scratchchin:

My monkey and I thank you kindly for your clarification. Duly noted.

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Wow. Such optimismabout the future of GM on this; a GM board.

It's such a great time when even the faithful have been brainwashed enough to turn against their own.

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Wow. Such optimismabout the future of GM on this; a GM board.

It's such a great time when even the faithful have been brainwashed enough to turn against their own.

Healthy skepticism is never a bad thing. Personally I really dislike the kinds of statements Lutz made without an immediate explanation of the basis for the statement. With no explanation, there is a vacuum and a vacuum will ALWAYS be filled with something - in this situation, it's speculation and cynicism on our part. Wouldn't it be better to fill it with real details of why he makes the statement?

I also think some comments were misunderstood. The statement about chopsticks and Mao were referring to (I belive) China and not Japan Inc. Personally I'd be in favor of 100% tariff on ANY imported goods. This would motivate people to make and buy things in their own country. (I know this is why I'll never be president but I can live with it.)

Oh, and one other thing..... if Lutz isn't the cheerleader, who will be? He HAS to speak confidently of the future because the Company is following his lead. If he is wishy washy about what he thinks about the future, all confidence is lost.

Edited by ellives
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