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longtooth

Jerry Flint's Outline for Saving GM

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Jerry raises all the issues that everyone already knows about. He mentions the Volt and the Cobalt replacement, but fails to mention that a new engine (in production NOW, not next year) in the Aveo addresses its major shortcoming.

GM is doing a lot of things right, but so is everyone else. That is the major issue here. Every single product cycle GM has has been shortened by several years. The pickups used to be 15 year cycles; now they are 7. The Cavalier was 11 years; the Cobalt wil be replaced in 5. The S-10 went 22 years by my count; the Colorado is slated for replacement in '10 after 7 model years. I could go on, but I think you get the point.

The fact is, GM is still living down its mistakes from the '80s and early '90s, not from bad things it is doing now. Wagoner inherited a big mess. He was in Brazil from '81 to '92, for Gawd's sake! Brazil is one of the few shining stars GM has, and that is largely thanks to Rick. Look at the funk GM was in when he came to Detroit in '92. He has actually only been in charge since '98 more or less. If you look at the seeds of destruction (market share slide), they started in the mid '90s. Is there a correlation between that and Hyundai finally coming out with decent vehicles? Or the fact Toyota and Nissan started getting serious about trucks? The Japanese Big 5 only built a narrow selection of small cars and trucks in the '80s. In the '90s, they all simultaneously went full line (doesn't that make you wonder, too?) Even BMW and Mercedes built ugly, funny cars until the early '80s.

If the Board decides to get rid of Wagoner and his cronies, it will be more about optics than about actually getting things done.

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Because, with a war raging in the Middle East and the BRIC countries consuming like never before, you would have to be an oracle with a vision of the future to predict $4 gas?

Nobody at GM have the time to take a look at a competitor's showroom before 2002?

Anybody in accounting bother to tell RW that only big trucks have been profitable in NA?

Any MBA/CPA's at the tubes catch the class about diversifying portfolios?

This is a bed of GM's making--the macro forces are only hastening the natural result of a rudderless ship. I have no confidence that this exec. management team has the skill set neessary to weather this crisis. Other than Lutz, there's noone with a right to keep their jobs.

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Yes, the biggest Hummers are gas pigs, but Hummer is a strong brand to put up against Jeep. It was a mistake, too, to cancel production of the Hummer H4, a smaller vehicle to compete against the iconic Jeep Wrangler. Just because consumers are flocking to vehicles that are more efficient does not mean that they do not want exciting, macho, sport utility vehicles

I completely agree with this and couldn't have said it better.

As for small cars, don't give one to Pontiac. He mentions going for the luxury market, so then give it to Buick. Small cars for Buick, Chevy and Saturn will be enough when you consider that they'll also have the Vibe and Solstice for Pontiac.

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Jerry raises all the issues that everyone already knows about. He mentions the Volt and the Cobalt replacement, but fails to mention that a new engine (in production NOW, not next year) in the Aveo addresses its major shortcoming.

GM is doing a lot of things right, but so is everyone else. That is the major issue here. Every single product cycle GM has has been shortened by several years. The pickups used to be 15 year cycles; now they are 7. The Cavalier was 11 years; the Cobalt wil be replaced in 5. The S-10 went 22 years by my count; the Colorado is slated for replacement in '10 after 7 model years. I could go on, but I think you get the point.

The fact is, GM is still living down its mistakes from the '80s and early '90s, not from bad things it is doing now. Wagoner inherited a big mess. He was in Brazil from '81 to '92, for Gawd's sake! Brazil is one of the few shining stars GM has, and that is largely thanks to Rick. Look at the funk GM was in when he came to Detroit in '92. He has actually only been in charge since '98 more or less. If you look at the seeds of destruction (market share slide), they started in the mid '90s. Is there a correlation between that and Hyundai finally coming out with decent vehicles? Or the fact Toyota and Nissan started getting serious about trucks? The Japanese Big 5 only built a narrow selection of small cars and trucks in the '80s. In the '90s, they all simultaneously went full line (doesn't that make you wonder, too?) Even BMW and Mercedes built ugly, funny cars until the early '80s.

If the Board decides to get rid of Wagoner and his cronies, it will be more about optics than about actually getting things done.

but if that is what wall st. wants as eye dressing to put them back in a positive light....

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but if that is what wall st. wants as eye dressing to put them back in a positive light....

Wall St. is far too short-sighted! They are only worried about the next couple quarters, not the next quarter century. Greed and selfishness are the norm. Japan Inc has always looked at the next quarter century. It takes a force of nature like Lutz to get Wall St. to change its way of thinking. This is one of the biggest reasons why America is falling flat on its face.

I watched a show on TV last night about the Iraq invasion: Bush gave planners 2 months to plan for the occupation. Truman had 2 years to plan the occupation of Japan.

Washington and Wall Street are very, very short sighted. We are all going to pay for that lack of vision.

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I know someone who actually has a somewhat personal relationship with Rick and she says what a wonderful guy she is. Actually this was my sons bio/math teacher in highschool. Her great grandfather was Thomas Murphy the man who ran GM for a few years. At his wake (Thomas) she had along talk with Rick about everytihng. I just wish I could meet him.

Edited by gm4life
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Wall St. is far too short-sighted! They are only worried about the next couple quarters, not the next quarter century. Greed and selfishness are the norm. Japan Inc has always looked at the next quarter century. It takes a force of nature like Lutz to get Wall St. to change its way of thinking. This is one of the biggest reasons why America is falling flat on its face.

I watched a show on TV last night about the Iraq invasion: Bush gave planners 2 months to plan for the occupation. Truman had 2 years to plan the occupation of Japan.

Washington and Wall Street are very, very short sighted. We are all going to pay for that lack of vision.

yup. true.

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